Urijit Panel Report

Urijit Patel, Deputy Governor RBI, headed the committee to revise and strengthen the monetary policy framework.The Committee said inflation should be the nominal anchor of the monetary policy framework and it should be defined without ambiguity.

• The panel suggested adopting a longer term target of 4% for CPI inflation with a band of (+/-) 2 per cent.
• In current situation the target should be 
•    8% in the coming 12 months
•    6% in the coming 24 months
•  RBI has accepted the CPI as the anchor for Inflation Targeting (IT) with effect from 01^st April 2014.