The Reserve Bank of India Thursday released a discussion paper on the review of the Monetary Policy Framework. The central bank has sought views on four questions, including whether the 4% inflation target remains optimal for balancing growth with stability in India.

The RBI has also sought views on whether the target inflation level should be completely removed and only a target range be maintained. The RBI has sought comments from stakeholders by Sept. 18. 

"With an explicit point target, MPC  members may differ in their chosen rate action because of differences in assessment of the economy," the RBI said in its discussion paper. "With range targeting, however, it may add an additional element of ambiguity with members having different perceptions of the target itself based on their individual economic assessments."