Direct Answer
The Reserve Bank of India Act, 1934 establishes the statutory authority for the RBI to act as the sole custodian of India’s foreign exchange reserves
RBI Act, 1934 (Subsections 17 & 33): Provides the primary legal framework and defines the scope of safe investments (e.g., foreign sovereign debt, BIS deposits).FEMA, 1999: Provides the broader regulatory framework governing foreign exchange transactions and capital controls in the wider market.