Monetary Policy Framework Agreement

With reference to the Monetary Policy Framework Agreement of the Reserve Bank of India, consider the following statements:

  1. The Government of India and Reserve Bank of India signed a Monetary Policy Framework Agreement in 2014.
  2. The objective of monetary policy framework is to primarily maintain price stability, while keeping in mind the objective of growth.
  3. As per the agreement, RBI would set the policy interest rates and would aim to bring inflation below 6 per cent by January 2016 and within 4 percent with a band of (+/-) 2 per cent for 2016-17 and all subsequent years.

Choose the incorrect statement(s) from the options given below:

Only 1
2 and 3
Only 3
1 and 3