In Indian foreign exchange management, a fixed foreign exchange rate can be changed by which authority among the following?

Introduction / Context:
A fixed or officially managed foreign exchange rate is an important part of a countrys macroeconomic and monetary policy framework. This question checks whether you know which institution in India has the operational authority to change such a rate. Competitive exams in banking and finance often test the roles of RBI, SEBI, and the Ministry of Finance, so understanding who actually manages exchange rates is very important.

Given Data / Assumptions:

• The question refers to a fixed foreign exchange rate, that is, an exchange rate managed by the authorities rather than being fully market determined.
• The institutional context is India.
• Four options are given: SEBI, Ministry of Finance, RBI, and all of the above.
• We assume the standard division of responsibilities among Indian financial regulators.

Concept / Approach:
In India, the Reserve Bank of India RBI is the central bank and has primary responsibility for foreign exchange management and implementation of monetary policy. RBI manages the foreign exchange market, intervenes when necessary, and implements the exchange rate policy in consultation with the Government of India. The Ministry of Finance sets broad policy guidelines but it does not directly change operational exchange rates. SEBI, on the other hand, regulates the securities market and has no role in setting currency values. Therefore, the correct answer must be the institution that actually manages and changes exchange rates in day to day operations, which is RBI.

Step-by-Step Solution:
Step 1: Identify which body in India is responsible for foreign exchange management. This is the Reserve Bank of India.Step 2: Recall that the Foreign Exchange Management Act FEMA gives RBI the power to regulate foreign exchange transactions and manage the market.Step 3: Recognise that SEBI role is limited to securities markets, such as shares and mutual funds, not currency determination.Step 4: Understand that the Ministry of Finance provides policy direction but does not directly operate the exchange rate in the market.Step 5: Conclude that among the options the correct authority to change a fixed foreign exchange rate in practice is the Reserve Bank of India RBI.

Verification / Alternative check:
You can verify this by thinking about who intervenes in the foreign exchange market when the rupee becomes very volatile. News reports always mention RBI intervention in the currency market, not SEBI intervention. Policy statements about exchange rate management also come through RBI monetary policy communications, sometimes mentioning that decisions are taken in consultation with the Government of India. This pattern confirms that RBI is the key authority for changing fixed or managed exchange rates.

Why Other Options Are Wrong:
Option A SEBI is wrong because SEBI regulates the securities market, protects investors in securities, and oversees stock exchanges and mutual funds, not the foreign exchange rate. Option B Ministry of Finance is incorrect in the operational sense because although it sets broad economic policy, it does not directly change exchange rates in the market. Option D all of the above suggests that SEBI also participates in changing exchange rates, which is not true. Only RBI has the operational authority to manage and change foreign exchange rates.

Common Pitfalls:
Students sometimes assume that any important financial decision must involve all authorities together and therefore choose all of the above. Others confuse SEBI role because they see it often in financial news. To avoid these errors, remember a simple rule: RBI is responsible for currency and banking, SEBI for securities, and the Ministry of Finance for overall fiscal and economic policy. When a question is specifically about changing a foreign exchange rate, RBI is the correct choice.

Final Answer:
In India, a fixed foreign exchange rate can be changed by the Reserve Bank of India RBI.