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RBI Act to be Amended to Form Monetary Policy panel

RBI Act to be Amended to Form Monetary Policy panel

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.

Mr 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 per cent.

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

© Thomson Reuters 2015