Which of the following Acts was amended to provide a statutory basis for the implementation of the flexible inflation targeting (FIT) framework?

Options

A. Deposit Insurance and Credit Guarantee Corporation Act, 1961
B. Banking Regulation Act, 1949
C. Reserve Bank of India (RBI) Act, 1934
D. The Industrial Finance Corporation of India Act, 1948

Answer

C

Explanation

In May 2016, The Reserve Bank of India Act of 1934 was amended to provide a legal basis for the execution of the flexible inflation targeting agenda. The edited RBI Act also provides for the inflation target to be set by the Indian Government, after discussing with the Reserve Bank, once in every five years.