RBI was empowered to regulate money, forex, G-sec and gold related securities market in ________.

The correct answer is 2007.

Key Points

• The Reserve Bank of India (RBI) was empowered to regulate the money market, foreign exchange market, government securities market, and gold-related securities market in 2007.
• This empowerment came through amendments to various acts, including the Reserve Bank of India Act, 1934.
• The move aimed to strengthen the regulatory framework and ensure financial stability in the Indian market.
• This regulatory power allowed the RBI to oversee and manage the liquidity and stability of these critical financial markets effectively.

Additional Information

• Reserve Bank of India (RBI)
  • Established in 1935, the RBI is India's central bank and regulatory body responsible for the issue and supply of the Indian rupee.
  • It also manages the country's main payment systems and works to promote its economic development.
  • The RBI plays a crucial role in the development strategy of the government of India.
• Money Market
  • The money market is a component of the financial market where short-term borrowing and lending of funds occur.
  • It involves financial instruments with high liquidity and short maturities, typically less than one year.
• Foreign Exchange Market (Forex)
  • The foreign exchange market is a global decentralized or over-the-counter market for trading currencies.
  • This market determines foreign exchange rates for every currency.
• Government Securities Market
  • This market involves the buying and selling of government securities, which are debt instruments issued by the government to finance its expenditures.
  • These securities are considered risk-free as they are backed by the government.
• Gold-Related Securities Market
  • This market involves trading financial instruments linked to gold, such as gold ETFs, sovereign gold bonds, and other derivatives.
  • It provides investors with exposure to gold without the need to hold the physical metal.