Rules / regulations / directions
Inflation Target Notification, 2026–2031
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Government of India Gazette notification S.O. 1580(E), 25 March 2026, under Section 45ZA.
Scope, legal role and applicability
Notification page for the inflation target applicable for the stated five-year period. The package records the cited Gazette identifier and target, but because the Gazette PDF was not retrievable during this rebuild, the source-status box transparently records that independent fetch limitation.
Operative requirements
- Use CPI Combined as the statutory inflation measure under the Act.
- Apply the notified target and upper/lower tolerance levels only for the stated effective period.
- Distinguish the target/tolerance notification under Section 45ZA from MPC voting under Section 45ZB and failure reporting under Section 45ZN.
- Do not describe a single monthly breach as statutory failure; apply the Section 45ZN consecutive-quarter test.
Records, forms and annexures
Retain the Gazette PDF/identifier and effective period in the legal file. If the source cannot be retrieved, mark the claim “source mapped; retrieval pending” rather than “verified”.
Practical advisory example
Facts and issue. Monthly CPI is above the upper tolerance band. The analyst should identify whether the month falls in the notification period and then assess the Section 45ZN quarter-based failure test; the monthly print alone is not the statutory trigger.
Working method. Classify the entity/product, identify the exact paragraph in force on the event date, test exceptions and transitional provisions, then retain the evidence listed above. Do not rely on the title of the Direction or an old Master Direction version.
RBI Act / cross-law linkage
Official source and version control
Questions and answers
What is the main purpose of Inflation Target Notification, 2026–2031?
Government of India Gazette notification S.O. 1580(E), 25 March 2026, under Section 45ZA.
Which part of Inflation Target Notification, 2026–2031 should be checked first?
Start with inflation target period and then apply this requirement: Period: 1 April 2026 to 31 March 2031.
What record should be retained?
The legal evidence is the Gazette notification plus RBI inflation/MPC publications. There is no entity filing form under this notification.
Does this page treat the RBI Act as the only enabling law?
No. S.O. 1580(E), 25 March 2026: 4% CPI target with 6% upper and 2% lower tolerance for 1 April 2026–31 March 2031.