RBI Functions and Autonomy — Policy Reforms

Entry	Year	Description	Impact
RBI Amendment Act 2016	2016	Established the Monetary Policy Committee (MPC) with six members including Governor, two Deputy Governors, and three external members appointed by government. Introduced inflation targeting framework with 4% target and ±2% tolerance band.	Enhanced institutional independence in monetary policy decisions while maintaining democratic accountability through appointment process and transparency requirements
Banking Regulation Amendment Act 2020	2020	Extended RBI's regulatory powers to cooperative banks, bringing them under unified banking supervision. Strengthened RBI's resolution powers and enhanced governance norms for cooperative banking sector.	Expanded RBI's supervisory scope and strengthened financial system stability by bringing cooperative banks under central bank oversight