The correct answer is: A. Reserve Bank of India
Authorized Dealers (ADs) are banks that are authorized by the Reserve Bank of India (RBI) to deal in foreign exchange. They are the only banks that can deal in foreign exchange on behalf of their customers. ADs are also responsible for maintaining the country’s foreign exchange reserves.
The RBI appoints ADs based on a number of factors, including their financial strength, experience in foreign exchange trading, and compliance with RBI regulations. ADs are required to maintain a certain level of capital and to have adequate systems in place to manage their foreign exchange transactions.
ADs play an important role in the country’s foreign exchange market. They provide liquidity to the market and help to facilitate trade and investment. They also help to manage the country’s foreign exchange reserves.
The other options are incorrect because:
- Option B: The Government of India does not appoint ADs. The RBI is the sole authority for appointing ADs.
- Option C: Individual banks cannot appoint ADs. Only the RBI can appoint ADs.
- Option D: FEDAI is a foreign exchange association of banks in India. It does not have the authority to appoint ADs.