BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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International Bank for Reconstruction and Development
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International Monetary Fund
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Government Treasury
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RBI
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Detailed explanation-1: -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.
Detailed explanation-2: -Answer: the RBI is the custodian of the foreign exchange reserves of India. Answer: India’s total Forex reserves stand at around US$634.287 Billion on 31st January 2022.
Detailed explanation-3: -India’s foreign exchange reserves are mainly composed of US dollar in the forms of US government bonds and institutional bonds. with nearly 7.34% of forex reserves in gold. The FCAs also include investments in US Treasury bonds, bonds of other selected governments and deposits with foreign central and commercial banks.
Detailed explanation-4: -The Reserve Bank of India Act, 1934 provides the overarching legal framework for deployment of reserves in different foreign currency assets and gold within the broad parameters of currencies, instruments, issuers and counterparties.