Special Drawing Rights (SDRs) relate to—

Special Drawing Rights (SDRs) are an international reserve asset created by the International Monetary Fund (IMF) in 1969 [4]. The SDR is not a currency itself but serves as a unit of account for the IMF and other international organizations [3]. Its value is determined by a weighted basket of five major global currencies: the US dollar, euro, Chinese renminbi, Japanese yen, and British pound sterling [4]. SDRs were originally established to supplement member countries' official reserves and are allocated based on each country's IMF quota [4]. While they are part of India's foreign exchange reserves, they are held in the custody of the government rather than the Reserve Bank of India [5]. The IMF facilitates transactions where members can exchange SDRs for freely usable currencies to meet balance of payment needs [3].

Sources

1. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > SPECIAL DRAWING RIGHTS > p. 514
2. [4] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 16: Balance of Payments > FOREIGN EXCHANGE RESERVES > p. 483
3. [3] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > Special Drawing Rights (SDR): > p. 398
4. [5] https://openknowledge.worldbank.org/server/api/core/bitstreams/6143a4ae-da5c-5378-bda6-e9119b9882ac/content