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In May 2016 the RBI Act was amended to give a statutory basis to:
AInsurance of bank deposits
BFlexible inflation targeting
CNationalisation of banks
DDemonetisation of notes
Answer & Solution
Correct answer: B. Flexible inflation targeting
1. The amendment created the modern framework.
2. It targets inflation with a tolerance band.
3. That is flexible inflation targeting.
_Source: Reserve Bank of India, Monetary Policy function overview (rbi.org.in)._
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