Inflation Targeting

A monetary policy framework adopted by India in 2016 under an MOU between RBI and the Government of India, mandating the MPC to maintain retail inflation (CPI) at 4% with a tolerance band of ±2% (i.e., 2% to 6%).

Inflation Targeting is governed by the Reserve Bank of India under applicable banking and monetary policy frameworks. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.

Inflation Targeting is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with RBI regulatory matters in India.