Foreign Exchange Market in India:The market in which international currency trade takes place i. e. where foreign currencies are bought and sold simultaneously is called the Foreign Exchange (Forex) Market. It is the organizational framework within which banks, merchants, firms, investors, individuals, and government exchange foreign currencies for one another. For example, in India, the currency in circulation is called the rupee INR and in the United States, the currency in circulation is called the US Dollar (USD). An example of a Forex trade is to sell the Indian rupee while simultaneously buying the US Dollar. The forex market is made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. Therefore, The exchange market of India consists of authorized dealers, RBI, and overseas banks to some extent.