Factbox - India introduces inflation target in key policy overhaul

(Reuters) - The Indian government and the central bank have agreed an overhaul to monetary policy that will be the most significant in a generation, with changes that include an inflation target from the fiscal year beginning in April. For the full document, click on: http://finmin.nic.in/reports/MPFAgreement28022015.pdf Following are key features of the document published on the finance ministry's website on Monday: POLICY DETAIL * India's monetary policy framework will be operated by the central bank. * India's monetary policy framework will aim to "maintain price stability while keeping in mind the objective of growth". INFLATION TARGET * India's central bank will aim to bring inflation below 6 percent by Jan 2016. * Consumer inflation target for 2016/2017 and subsequent years will be 4 percent +/-2 percentage points. MISSING THE TARGET * India central bank shall be seen to have failed to meet its target if inflation is more than 6 percent for three straight quarters in 2015/16 and subsequent years. * From 2016/17, it will also be seen to have missed its target if inflation is below 2 percent for three straight quarters in 2016/17 and subsequent years. EXPLAINING THE MISS * If the central bank misses the inflation target, it will send a report to the government citing reasons and remedial actions. * The central bank will also need to give an estimated time-period within which it expects to return to the target level. COMMITTEE * The change is expected to include the introduction of a Monetary Policy Committee, but there was no detail on that in the document released on Monday. (Compiled by Neha Dasgupta; Editing by Clara Ferreira Marques)