Statutory Meaning & Definition
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%).
Frequently Asked Questions (FAQs)
What is Inflation Targeting in Indian corporate law?
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%).
Why is Inflation Targeting important for compliance?
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.
Who should know about Inflation Targeting?
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.
Contextual Analysis & Regulatory Circulars
Recent analysis and regulatory updates related to RBI:
RBI Domestic Money Transfer Directions 2026: Cash Pay-Out and Pay-In Limits Explained
Published: 11 November 2026
RBI CTS Cheque Book Change from 31 December 2026 Is Fake: No New Cheque Books from 1 January 2027
Published: 8 November 2026
RBI Priority Sector Lending Draft Directions 2026: Five RE-Wise Drafts, Comments Open Till 26 November
Published: 6 November 2026
Was this article accurate and helpful?
Help us maintain high accuracy standards across corporate law updates.