UPSC Prelims Practice Questions — RBI working on avenues for Russian counterparts’ INR use

Q1. The framework for International Trade Settlement in Indian Rupees (INR) and Special Rupee Vostro Accounts is administered within the Reserve Bank of India by which one of the following departments?

  • A. Department of Regulation
  • B. Foreign Exchange Department
  • C. Department of Payment and Settlement Systems
  • D. Financial Markets Regulation Department

Q2. With reference to the Special Rupee Vostro Account (SRVA) framework as it stood after the Reserve Bank of India's 2025 reforms, consider the following statements: 1. Authorised Dealer Category-I banks may open an SRVA of a correspondent foreign bank without prior approval of the Reserve Bank of India. 2. The balance in an SRVA may be repatriated in freely convertible currency or in the currency of the beneficiary trading partner country. 3. Surplus rupee balances in an SRVA may be invested in Treasury Bills issued by the Government of India. 4. Surplus rupee balances in an SRVA may be invested in non-convertible debentures issued by Indian companies. Which of the statements given above are correct?

  1. Authorised Dealer Category-I banks may open an SRVA of a correspondent foreign bank without prior approval of the Reserve Bank of India.
  2. The balance in an SRVA may be repatriated in freely convertible currency or in the currency of the beneficiary trading partner country.
  3. Surplus rupee balances in an SRVA may be invested in Treasury Bills issued by the Government of India.
  4. Surplus rupee balances in an SRVA may be invested in non-convertible debentures issued by Indian companies.
  • A. 1 and 2 only
  • B. 3 and 4 only
  • C. 1, 2 and 3 only
  • D. 1, 2, 3 and 4

Q3. The Reserve Bank of India's framework for International Trade Settlement in Indian Rupees, including the operation of Special Rupee Vostro Accounts, is statutorily anchored in which one of the following Acts?

  • A. The Reserve Bank of India Act, 1934
  • B. The Banking Regulation Act, 1949
  • C. The Foreign Exchange Regulation Act, 1973
  • D. The Foreign Exchange Management Act, 1999

Q4. As per the Reserve Bank of India's A.P. (DIR Series) Circular No. 13 dated 3 October 2025, surplus rupee balances in a Special Rupee Vostro Account may be invested in how many categories of corporate debt instruments issued by Indian companies?

  • A. Two
  • B. Three
  • C. Four
  • D. Five