Rupee Volatility and Management — Policy Reforms

Entry	Year	Description	Impact
FEMA Amendment 2015	2015	Liberalized foreign exchange regulations by increasing limits for current account transactions, simplifying procedures for trade-related payments, and enhancing flexibility for corporates in managing foreign exchange exposure through derivatives.	Reduced regulatory burden on businesses while maintaining RBI's oversight capabilities, contributing to deeper forex markets and improved risk management practices that help reduce overall system volatility
FEMA Amendment 2020	2020	Introduced comprehensive reforms in foreign investment regulations, rationalized approval processes, and enhanced digital payment mechanisms for cross-border transactions in response to COVID-19 challenges.	Facilitated smoother capital flows during the pandemic while strengthening RBI's ability to monitor and manage exchange rate pressures through improved data systems and regulatory frameworks