FINANCIAL MARKETS

Well-functioning, liquid and resilient financial markets help monetary policy transmission as well as in allocation and absorption of risks entailed in financing India’s growth.

Information pertaining to Financial Market Department


RIA No Information Sought Reply given/ Information provided Date of Reply
1
RIA 1124, /2007-08
FMD

Details of Memorandum of Understanding entered between the Reserve Bank of India and the Ministry of Finance, Govt of India, detailing the rationale and operational modalities of the Market Stabilisation Scheme. The details are available on our website www.rbi.org.in at http://www.rbi.org.in/scripts/ BS_PressReleaseDisplay.aspx?prid=9886 January 31, 2008
1654/13-14 FMD On which date was Indian currency Rupee devalued in terms of American Dollar for the first time and what were the reasons for the devaluation?   Under RTI Act, furnish the reasons for devaluation of Rupee in terms of Dollar as stated by the Government, in Hindi and English. Consequent to the devaluation of Pound Sterling, Rupee was automatically devalued to the same extent (as the Pound Sterling) on 18 September 1949. Rupee was again devalued on June 06, 1966 to correct the external payments which had reached a state of critical disequilibrium. The measure was also resorted to with a view to maintain the existing exports by bringing about a better alignment between internal and external prices and thus giving exports greater competitive strength. Corresponding new rate of exchange was Rs.7.50 to 1 US dollar as against the previous rate of Rs. 4.76 to 1 US dollar. As regards the two way movement of exchange rate of Indian Rupee, it is advised that the Reserve Bank does not control the foreign exchange rate of Rupee. The exchange rate of the Rupee is largely determined by demand and supply conditions in the foreign exchange market. The Reserve Bank’s role is to maintain stability in the foreign exchange market by ensuring orderly conditions without targeting a pre-specified level or band for Rupee’s exchange rate. October 15, 2013
2627/13-14 FMD What measure has been taken to stable or strong Indian Rupees (INR) as compared to US Dollar or other currency. Please provide all the document like minutes or meeting, circular or other related document. In recent times, in order to stabilize the value of rupee, RBI has taken various measures like clamping restrictions on import of gold, tightening the position limits on currency futures, prohibiting arbitrage trades between futures and OTC markets, rationalizing forex outflows by residents and encouraging capital inflows. Information on various measures taken is available in detail in the relevant Press Release on the following link-
http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx
November 25, 2013
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