RBI Act – in place
The Reserve Bank of India (Amendment) Bill, 2006 has been enacted. With the President signing the legislation as passed by Parliament and its gazette notification, the Act has come into force.
The Act empowers the Reserve Bank of India (RBI) to lay down policy directions to any agency dealing in various kinds of contracts in respect of Government securities, money-market instruments and derivatives and inspect such agencies. It also empowers the RBI to deal in derivatives and to lend or borrow securities. The Act enables the RBI to remove the lower and upper ceiling of Cash Reserve Ratio (CRR) and to provide flexibility to RBI to specify the CRR.