In India, which one of the following is responsible for maintaining price stability by controlling inflation?
✓ Correct answer: d) Reserve Bank of India
ExplanationThe Reserve Bank of India (RBI) is primarily respon- sible for maintaining price stability and controlling inflation in India.It does this through its monetary policy framework, which includes tools like the repo rate, reverse repo rate, open market operations, and cash reserve ratio (CRR).Under the Monetary Policy Framework Agreement (2016), the RBI, in collaboration with the Government of India has a mandate to maintain inflation at 4% (with a tolerance band of ±2%), i.e., between 2% to 6%.149
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