That the Reserve Bank of India is under compulsions, in terms of directives issued by the government under provisions of the RBI Act, to maintain inflation at 4% (+/ 2) for a five year period (2016 2021) and is accountable for any breach on this count needs to be appreciated before putting it in the dock for its obsession with inflation targeting (Editorial page, “Even central banks need ‘capital’ infusion, June 29). The ball is in the government’s court. A similar obligation is cast by the FRBM Act on the government to have the fiscal deficit in check.
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