What is the role of RBI in foreign exchange market?
The Reserve Bank of India, is the custodian of the country's foreign exchange reserves and is vested with the responsibility of managing their investment. The legal provisions governing management of foreign exchange reserves are laid down in the Reserve Bank of India Act, 1934.
What is the main role of RBI?
Regulator and supervisor of the financial system: Prescribes broad parameters of banking operations within which the country's banking and financial system functions. Objective: maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public.
What is the role of RBI in currency management?
ensuring smooth distribution of banknotes and coins throughout the country and retrieval of unfit notes and uncurrent coins from circulation, ensuring the integrity of bank notes, administering the RBI (Note Refund) Rules, reviewing/rationalising the work systems/procedures at the issue offices on an ongoing basis and.
What is the role of RBI in 5 points?
Important Functions of RBI (Reserve Bank of India)\n\n Banker to the Government. Custodian of the Cash Reserves of Commercial Banks. Custodian of country's forex reserves. Lender of last resort.
What is the role of RBI in money market?
The function of the RBI as a regulator of the money market is to regulate and manage the country’s foreign exchange. It is in charge of the country’s currency and gold reserves. The foreign exchange rate reflects the demand for and supply of foreign exchange resulting from trade and capital transactions on any given day.
What are the major activities of RBI’s foreign exchange department?
Its major activities include framing of rules governing the conduct of interbank foreign exchange business among banks in relation to the public, and liaisoning with RBI for reforms and development of the forex market. 1. Setting guidelines and rules for forex business 2.
What is the regulatory framework of RBI in India?
After reading this article you will learn about the regulatory framework of RBI in India. The regulatory framework for foreign exchange markets in any country is generally decided by the central bank of that country. In India; the Reserve Bank of India (RBI) decides the rules of the game for the way foreign exchange markets function.