The Eurosystem considers the various fora for international cooperation as important instruments for managing the increasing trend towards globalised economy and finance. The high degree of international capital mobility and technological advances have created interdependencies which call for new forms of global “governance”.
This will facilitate a comparison of the RBI’s operating procedure vis-á-vis the international best practice. Federal Reserve Bank Depository institutions or commercial banks in the US are required to maintain a prescribed minimum reserve at the Fed. The actual reserve balance for a bank, however, keeps fluctuating during a day with continuous receipts and payments taking place.