According to Reserve Bank of India Deputy Governor Michael D Patra, the country's monetary policy is designed to be financially inclusive, and this strategy will result in policy efficacy and welfare maximisation in the future. He stated monetary policy maximises human welfare by minimising production deviations from potential and inflation deviations from the target, speaking at an event organised by the Indian Institute of Management (IIM) in Ahmedabad. The index, which was announced in September 2021, has a scale of 0 to 100 points and implicitly outlines the RBI's aim of 100% financial inclusion for India. Furthermore, inflation targeting monetary policy protects even individuals on the periphery of financial inclusion from negative income shocks that occur when prices increase unreasonably.
