Monetary Policy Committee — Policy Reforms

Entry	Year	Description	Impact
Finance Act, 2016	2016	This landmark amendment to the Reserve Bank of India Act, 1934, inserted new Sections 45ZB to 45ZO, providing the statutory basis for the constitution and functioning of the Monetary Policy Committee (MPC). It formally established the flexible inflation targeting framework in India.	Transformed India's monetary policy framework from a Governor-centric discretionary model to a committee-based, institutionalized, transparent, and accountable system. It legally mandated inflation targeting as the primary objective of monetary policy and defined the composition, powers, and accountability of the MPC.