RBI will be more judicious in its use of foreign exchange reserves to mitigate domestic currency market volatility amid strong global headwinds, three sources aware of the development said. The Reserve Bank of India will continue to intervene as and when necessary to smoothen volatility, but won't go against the tide and massively intervene to protect any levels, the sources said, asking not to be named as the discussions are confidential. "Reserves were built for a rainy day and RBI has intervened when it has been necessary.