The RBI acts as the custodian of the country’s foreign exchange reserves, manages exchange control and acts as the agent of the government in respect of India’s membership of the IMF.
Who is the custodian of foreign exchange reserve of India?
the Reserve Bank of India
The reserves are managed by the Reserve Bank of India for the Indian government and the main component is foreign currency assets. Foreign-exchange reserves act as the first line of defense for India in case of economic slowdown, but acquisition of reserves has its own costs.
Which bank is the custodian of foreign exchange reserve?
RBI
The custodian of India’s foreign exchange reserve is__: Apart from maintaining the rate of exchange of the rupee, RBI has to act as the custodian of India’s reserve of international currencies.
Who is the custodian of foreign?
The RBI
ADVERTISEMENTS: The RBI acts as the custodian of the country’s foreign exchange reserves, manages exchange control and acts as the agent of the government in respect of India’s membership of the IMF.
What is the function of custodian of foreign exchange?
In India, the RBI is the custodian of the country’s foreign exchange reserves. It buys and sells rupees as well as foreign currency in the foreign exchange market to maintain the stability exchange rate.
Which is the custodian of foreign exchange reserves in India?
The RBI acts as the custodian of the country’s foreign exchange reserves, manages exchange control and acts as the agent of the government in respect of India’s membership of the IMF. Exchange control was first imposed in India in September 1939 at the outbreak of World War II and has been continued since.
What do you mean by foreign exchange reserves?
Foreign-exchange reserves (also called forex reserves or FX reserves) are assets held by a central bank or other monetary authority, usually in various reserve currencies, mostly the United States dollar, and to a lesser extent the euro, the pound sterling, the Japanese yen, and used to back its liabilities.
What does it mean to be a custodian for a bank?
A custodian is a bank that holds financial assets for safekeeping to minimize the risk of theft or loss. Investment advisors are required to arrange for a custodian for assets they manage for their clients.
How does the Central Bank control foreign exchange?
The central bank exercises effective control over foreign exchange to meet the deficit in the balance of payments and to maintain the international liquidity of the country. It also manages exchange control operations by supplying foreign currencies to importers, businessmen and students going abroad. In India,
