As per Section 45ZN of the Reserve Bank of India (RBI) Act, 1934, if the Reserve Bank fails to meet the inflation target (set by the Government of India in consultation with the RBI) for three consecutive quarters, it is required to submit a report to the Central Government explaining the reasons for failure and the remedial actions it plans to take.
In accordance with the RBI Act, the central bank is required to make a report to the government if the inflation target is not maintained for how many quarters?
Asked in GPSC Prelims CSP 2 2023 · Topic: Money & Banking (Inflation: Types, Causes, Effects, and Monetary Policy Responses)
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