These changes have included a more flexible approach to inflation targeting by shifting the policy horizon out to 18 to 24 months, assisted in part by a wider inflation band of 0 to 3 per cent.
Illustratively, with a view to enhancing further transparency, all cases of penalty imposed by the RBI on the banks as also directions issued on specific matters, including those arising out of inspection, are to be placed in the public domain. Such proactive disclosures by the Regulator are expected to have a salutary effect on the functioning of the banking system.