Question

Explain in detail the role of Reserve Bank of India in Foreign Exchange management.

Answer 1

The role of Reserve Bank of India in Foreign Exchange management:

The central bank manages to reach different goals of the Foreign Exchange Management Act, 1999. Their objective is to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India. RBI manages foreign exchange and gold reserves of the nation.

Ownership: Government of India (100%)

Currency: Indian rupee (₹)

Headquarters: Mumbai, Maharashtra, India