Under the monetary policy framework introduced into the Reserve Bank of India Act, 1934 by the 2016 amendment, the six-member Monetary Policy Committee is tasked with achieving which inflation target?

Through the 2016 amendment, sections 45ZA and 45ZB were inserted in the Reserve Bank of India Act, 1934. Under section 45ZA, the Central Government fixes the inflation target in consultation with the Reserve Bank once in every five years, and under section 45ZB a six-member Monetary Policy Committee, chaired by the Governor and including a Deputy Governor, an officer of the Reserve Bank nominated by its Board and three persons appointed by the Central Government, determines the policy rate required to achieve the target. The target notified in 2016 is four per cent consumer price index inflation with a tolerance band of plus or minus two per cent. In the event of a tie, the Governor has a casting vote. The four per cent target with a two per cent band is therefore correct.