RBI Reference Rate

[Narasimha Subramanian]

Dear Sir/Madam,

what is the purpose and use of the RBI Reference Rate for US$ and Euro being given every day? 

AI Summary

RBI Reference Rate for USD & Euro: Daily Methodology and Revised Approach Since July 1, 2011 Explained A query regarding the purpose and use of the Reserve Bank of India's (RBI) Reference Rate for USD and Euro was addressed. The RBI publishes these rates daily by averaging bid/offer rates from selected banks, chosen based on their market presence. The methodology ensures the reference rate reflects market activity accurately. A revised approach, effective July 1, 2011, introduced polling rates from banks during a random five-minute window between 10:30 a.m. and 12:30 p.m., with results disseminated to four decimal places by 1:00 p.m. on weekdays, excluding Saturdays.