What is the primary purpose of formative assessment in the teaching-learning process?

Which of the following statements about the assessment of children is NOT correct?

Formative assessment is conducted:

Assertion (A): Nikhil decided to conduct monthly tests using different activities, assessments, and critical thinking questions to understand the learning level of his students. Reason (R): Formative assessment is effective in improving student learning; it should focus on the ongoing observation of learning rather than being judgmental based solely on marks.