In a first, RBI governor to write to FinMin if inflation target missed

Inflation, as measured by the consumer price index (CPI), has remained above 6 per cent, the upper limit of the tolerance band, since January this year

The Reserve Bank of India (RBI) governor will write a letter to the finance ministry if average headline consumer price inflation stays above 6 per cent for three consecutive quarters, which will be over at the end of September.

The format is significant because it will be the template for such communication in future.

RBI Governor Shaktikanta Das will not be in direct communication with Parliament on the subject. Instead, it will be Union Finance Minister Nirmala Sitharaman who will decide whether to place the communication on the table of the House.

It means subsequent discussion, if any, in Parliament on the conduct