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WBCS Main Examination 2023 — Paper V: Indian Constitution and Economy · Question 153 of 200

Q153
Indian EconomyMoney, Banking & Financial Institutions
The legal provisions governing the management of foreign exchange reserves are laid down in the Reserve Bank of India Act—
  1. a.1947
  2. b.1934
  3. c.1949
  4. d.1999

Answer: (B) 1934

The RBI Act, 1934 (sections 17 and 33 among others) lays down how the RBI holds and invests foreign exchange reserves. 1949 is the year of nationalisation and of the Banking Regulation Act, and 1999 the year of FEMA, which regulates foreign exchange transactions rather than reserve management.

Q152 Whole paperQ154