Question Bank - Banking & Financial Services

Here's the question bank on all the banking & financial services topics.

The legal provisions governing the management of foreign exchange reserves are laid down in the Reserve Bank of India Act, ______.

A.
1934
B.
1923
C.
1947
D.
1971

Solution:

The correct answer is 1934. The Reserve Bank of India Act, 1934 provides the overarching legal framework for the deployment of reserves in different foreign currency assets and gold within the broad parameters of currencies, instruments, issuers, and counterparties. The guiding objectives of foreign exchange reserve management in India are similar to those of many central banks in the world. The essential legal framework for reserve management is provided in sub-sections 17 (6A), 17(12), 17(12A), 17(13), and 33 (6) of the above Act. Additional InformationGovernor of RBI - Shaktikanta DasDeputy Governor of RBI - Rajeshwar Rao, M. K. Jain, and Michael Patra. Sub Offices of RBI - 11Headquarters of RBI - Mumbai.

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