Under Section 45ZN of the RBI Act, 1934, where the Bank

Solution

Section 45ZN provides that where the Bank fails to meet the inflation target, it shall set out in a report to the Central Government the reasons for the failure, the remedial actions proposed to be taken, and an estimate of the time-period within which the inflation target shall be achieved pursuant to timely implementation of the proposed remedial actions. The factors constituting failure are notified by the Central Government. The report on failure must be made to the Central Government.