Loading...
UPSC 1995: As part of the liberalisation programme and with a view to attracting foreign exchange, the Government and the RBI have devised two schemes known as FCNR-‘A’ and FCNR-‘B’. Which of the following is/are true regarding these two schemes? I. Under scheme ‘A’ RBI bears exchange rate fluctuations. II. Under scheme ‘B’, other banks are to meet out the difference in exchange rate fluctuations. III. Both the schemes stand withdrawn now. IV. Only scheme ‘A’ has been withdrawn. Select the correct answer from the codes given below:
(a)III only
(b)I and II
(c)I, II and III
(d)I, II and IV
Attempt This Question
Not attemptedCorrect Answer: (d) I, II and IV
Under the original FCNR-A scheme the RBI itself provided full exchange-rate cover, while under the replacement FCNR-B scheme the risk is borne by the accepting commercial bank. FCNR-A was withdrawn for fresh deposits on 15 Aug 1994, but FCNR-B continues; therefore statements I, II and IV are correct, making option (d) the right choice. ([business-standard.com](https://www.business-standard.com/article/specials/reserve-bank-issues-norms-for-renewal-of-matured-fcnr-a-197020101076_1.html?utm_source=openai))
Related UPSC Questions
More from Banking & Financial Sector
1995moderate
The Narasimham Committee for Financial Sector Reforms has suggested reduction in
1995moderate
97. Consider the following: I. Industrial Finance Corporation of India II. Industrial Credit and Investment Corporation of India III. Industrial Devel
1997moderate
Match List I with List II and select the correct answer by using the codes given below the lists: List I (Committees) I. Disinvestment of shares in Pu
Related Indian Economy Topics
1995Agriculture & Rural Development
Which of the following are the objectives of the Commission for Agricultural Costs and Prices (CACP)? I. To stabilise agricultural prices. II. To ensu
1995Fiscal Policy & Budget
Which of the following are among the non-plan expenditures of the Government of India? I. Defence expenditure II. Subsidies III. All expenditures link
Frequently Asked Questions
What is the correct answer to this UPSC 1995 Indian Economy question?▼
The correct answer is option (d): I, II and IV. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Banking & Financial Sector question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 1995, GS Paper 1, as Question 27. It falls under Indian Economy > Banking & Financial Sector.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Banking & Financial Sector?▼
UPSC has asked 48 questions from Banking & Financial Sector (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.