CLAT GurukulSamudraManthan
← Topics 0/10 answered

Topic 187 · Economy, Budget & Banking

India's forex reserves hit record $785.71 billion

10 MCQs · tap an option to check it · All answers

Revise the 12 points first Book 1 RATNA
  1. Core Trigger: India's forex reserves rose $44.9 billion to a record $785.71 billion in the week ended 4 September 2026, overtaking Russia for fourth place (reports).
  2. Driver: FCNR(B) deposit inflows – Foreign Currency Non-Resident (Bank) accounts – helped the jump.
  3. Current Head: Sanjay Malhotra is Governor of the Reserve Bank of India, in office since December 2024.
  4. Components: Reserves comprise foreign currency assets, gold, Special Drawing Rights and the reserve tranche position with the IMF.
  5. Later Data: Reserves later fell $14.88 billion to $765.90 billion in the week ended 18 September 2026.
  6. Stakeholders: The RBI manages the reserves and reports them weekly; overseas Indians' deposits fed the FCNR(B) inflows.
  7. India Link: Large reserves cushion rupee volatility, cover imports and buffer external shocks.
  8. Headquarters: The RBI's central office is in Mumbai, India.
  9. Founded: The RBI began on 1 April 1935 under the RBI Act, 1934, and was nationalised on 1 January 1949.
  10. Landmark: The Foreign Exchange Management Act, 1999 replaced FERA 1973, shifting policy from control to management of foreign exchange.
  11. Articles: Entry 36 of the Union List covers currency and foreign exchange; Entry 38 covers the Reserve Bank of India.
  12. Doctrine: Current account convertibility, accepted under Article VIII of the IMF Articles in August 1994, differs from capital account convertibility.
Question 1 of 10

India's reserves hit a record $785.71 billion, overtaking Russia for which global rank?

Show answer

Answer: (D) Fourth

Core Trigger: India's forex reserves rose $44.9 billion to a record $785.71 billion in the week ended 4 September 2026, overtaking Russia for fourth place (reports).From Book 1 RATNA, topic 187, point 1

Question 2 of 10

Inflows into which deposits helped the jump in India's reserves?

Show answer

Answer: (C) FCNR(B) deposits

Driver: FCNR(B) deposit inflows – Foreign Currency Non-Resident (Bank) accounts – helped the jump.From Book 1 RATNA, topic 187, point 2

Question 3 of 10

Who is RBI Governor, in office since December 2024?

Show answer

Answer: (D) Sanjay Malhotra

Current Head: Sanjay Malhotra is Governor of the Reserve Bank of India, in office since December 2024.From Book 1 RATNA, topic 187, point 3

Question 4 of 10

Besides foreign currency assets, gold and SDRs, reserves include which IMF-linked item?

Show answer

Answer: (D) Reserve tranche position

Components: Reserves comprise foreign currency assets, gold, Special Drawing Rights and the reserve tranche position with the IMF.From Book 1 RATNA, topic 187, point 4

Question 5 of 10

Reserves stood at what level in the week ended 18 September 2026?

Show answer

Answer: (B) $765.90 billion

Later Data: Reserves later fell $14.88 billion to $765.90 billion in the week ended 18 September 2026.From Book 1 RATNA, topic 187, point 5

Question 6 of 10

Which institution manages India's reserves and reports them weekly?

Show answer

Answer: (D) RBI

Stakeholders: The RBI manages the reserves and reports them weekly; overseas Indians' deposits fed the FCNR(B) inflows.From Book 1 RATNA, topic 187, point 6

Question 7 of 10

Where is the RBI's central office?

Show answer

Answer: (B) Mumbai

Headquarters: The RBI's central office is in Mumbai, India.From Book 1 RATNA, topic 187, point 8

Question 8 of 10

On what date was the RBI nationalised?

Show answer

Answer: (C) 1 January 1949

Founded: The RBI began on 1 April 1935 under the RBI Act, 1934, and was nationalised on 1 January 1949.From Book 1 RATNA, topic 187, point 9

Question 9 of 10

The Foreign Exchange Management Act, 1999 replaced which earlier law?

Show answer

Answer: (D) FERA 1973

Landmark: The Foreign Exchange Management Act, 1999 replaced FERA 1973, shifting policy from control to management of foreign exchange.From Book 1 RATNA, topic 187, point 10

Question 10 of 10

Consider: 1. Entry 36 of the Union List covers currency and foreign exchange. 2. Entry 36 also covers the Reserve Bank of India. Which is/are correct?

Show answer

Answer: (A) Only 1

Articles: Entry 36 of the Union List covers currency and foreign exchange; Entry 38 covers the Reserve Bank of India.From Book 1 RATNA, topic 187, point 11

Answer all ten to see your score

0 of 10 answered · 0 correct

See all answers →Next topic →

Track your weak chapters across all 380 topics — sign in to the free app.

Android appWeb app (sign-in needed)

Open this topic in the app (sign-in needed)