Inflation and Price Indices — Environmental Laws

Entry	Year	Description	Impact
Finance Act, 2016	2016	This Act amended the Reserve Bank of India Act, 1934, to provide a statutory basis for the implementation of the flexible inflation targeting framework. It introduced new sections (45ZA to 45ZF) establishing the Monetary Policy Committee (MPC) and defining its mandate.	Formally institutionalized the inflation target (4% +/- 2% CPI) as the primary objective for monetary policy, established the MPC for transparent decision-making, and introduced accountability mechanisms for the RBI if the target is missed. This significantly enhanced the credibility and effectiveness of India's monetary policy framework.