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SSC CGL 2019 PYQ — Question 47

SSC CGL - 7th June 2019 - Shift 3 • General Awareness • Q47

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Which of the following Acts was amended to provide a statutory basis for the implementation of the flexible inflation targeting (FIT) framework?

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Correct answer: A

Explanation

The correct answer is option 1 i.e Reserve Bank of India (RBI) Act, 1934.

The Reserve Bank of India (RBI) Act, 1934 was amended in 2016 to introduce a statutory basis for the Flexible Inflation Targeting (FIT) framework. The amendment mandated the RBI to maintain inflation within a target range (4% ± 2%), making price stability its primary objective.

Other Options:

  1. The Industrial Finance Corporation of India Act, 1948 – Established IFCI to provide industrial financing, unrelated to monetary policy.

  2. Deposit Insurance and Credit Guarantee Corporation Act, 1961 – Governs deposit insurance for banks, not inflation control.

  3. Banking Regulation Act, 1949 – Regulates banking operations, not monetary policy frameworks like FIT.

Thus, only the RBI Act, 1934 was amended to institutionalize the FIT framework, enhancing transparency and accountability in inflation management.