The Reserve Bank of India consists of the Ministry of Monetary Management, the Ministry of Urban Banking, the Ministry of Rural Planning and Credit, the Ministry of Foreign Exchange Control, the Ministry of Industry and Export Credit, the Financial Supervisory Committee, the Ministry of Banking Management, the Ministry of Non-banking Management, the Ministry of Banking and Development, the Ministry of Technology, the Ministry of Law, the Ministry of Monetary Policy, the Ministry of Domestic Debt Management, the Ministry of Foreign Investment and Operation, the Ministry of Government and Bank Deposits, the Ministry of Economic Analysis and Policy, and the Ministry of Statistical Analysis and Calculation Services.
According to the 1 999 foreign exchange management law, which came into effect on July12000, the responsibility of the foreign exchange control department of the reserve bank was transferred from reserving foreign exchange to promoting foreign trade and payment, so as to promote the orderly development of the Indian foreign exchange market. According to the Act, India revised the foreign exchange management framework, made corresponding management regulations for different types of transactions, and emphasized the transparency of the regulations. For capital account transactions, the Reserve Bank Regulations provide procedures for non-resident investment, resident foreign investment and foreign loans to be approved in principle or automatically. The foreign exchange administration department has also made specific provisions on the risk management of foreign exchange transactions of banks. The foreign exchange administration department is responsible for examining and approving the establishment of representative offices, project offices, joint ventures, branches and wholly foreign-owned companies by foreign companies in India.