Govt to amend RBI Act to form monetary policy panel

New Delhi: The government will introduce amendments to the Reserve Bank of India Act that would allow for the creation of a monetary policy committee, Finance Secretary Rajiv Mehrishi said on Monday.

Finance Secretary Rajiv Mehrishi
Finance Secretary Rajiv Mehrishi

Mehrishi was speaking at a news briefing after the finance ministry struck a pact with the RBI to make targeting inflation the cornerstone of India’s monetary policy, setting a central target for consumer price growth of 4 percent.

The act would be amended in the 2015/16 fiscal year after consultations with the RBI and other stakeholders, Mehrishi told reporters.