Glossary
● Capital Account Convertibility: Capital account convertibility is a feature of a
nation's financial regime that centres on the ability to conduct transactions of local
financial assets into foreign financial assets freely or at market determined
exchange rates. It is sometimes referred to as capital asset liberation or CAC.
● Reserve Management: Reserve management is a process that ensures that
adequate official public sector foreign assets are readily available to and controlled
by the authorities for meeting a defined range of objectives for a country or union.
● Foreign Exchange Dealers Association of India (FEDAI): The Foreign Exchange
Dealers Association of India (FEDAI) is an association of commercial banks that
specialises in the foreign exchange (forex) markets in India. These institutions are
also called Authorised Dealers or ADs. Created in 1958 and incorporated under
Indian law, Section 25 of The Companies Act of 1956, the Association regulates the
rules that determine commissions, fees, and charges that are attached to the
interbank foreign exchange business.
The FEDAI's core functions include:
● Advising and supporting member banks with issues that arise in their dealings.
● Representing member banks on the Reserve Bank of India (India's central
bank).
● Announcement of daily and periodical interest rates to member banks.
● Guidelines and Rules for Forex Business.
● Training of Bank Personnel in the areas of Foreign Exchange Business.
● Accreditation of Forex Broker
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