Section 45W of RBI Act : Section 45W: Power To Regulate Transactions In Derivatives, Money Market Instruments, Etc
RBI Act
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Explanation using Example
Imagine a scenario where there is volatility in the foreign exchange market, causing rapid fluctuations in currency values. The Reserve Bank of India (RBI), in an attempt to stabilize the market, decides to use its powers under Section 45W of the RBI Act, 1934.
The RBI might issue a directive to all commercial banks, inst...
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