Question

India’s foreign exchange reserves climbed to a record of $651.5 billion by the end of last week demonstrating resilience despite uncertain geopolitics.

With reference to the above, name the institution that is authorised to monitor such reserves in our country.

Options

• Central Bank of India

• State Bank of India

• Citi Bank

• Indian Bank

Answer 1

Central Bank of India

Explanation:

Our country’s central bank, the Reserve Bank of India (RBI), is the statutory custodian and sole authorized manager of its foreign exchange reserves. It maintains these reserves dynamically, using regulatory frameworks such as the Foreign Exchange Management Act (FEMA), to maintain currency stability, build investor confidence, and provide external financial resilience in the face of uncertain global geopolitics.