UPSC Prelims Practice Questions — India eyes local currency trade for West Asian oil

Question 1

Within India's framework for settling cross-border trade in Indian Rupees, which one of the following is the principal enabling instrument through which a foreign correspondent bank's rupee trade balances are held and settled?

Accepted Answer

Special Rupee Vostro Account (SRVA)

Answer

Exchange Earners' Foreign Currency (EEFC) Account

Answer

Special Non-Resident Rupee (SNRR) Account

Answer

Nostro Account

Question 2

The framework permitting authorised dealer banks to open Special Rupee Vostro Accounts for settling India's external trade in rupees — central to the proposed local-currency oil trade — is laid down and operationalised by which one of the following?

Accepted Answer

Reserve Bank of India

Answer

Securities and Exchange Board of India

Answer

Directorate General of Foreign Trade

Answer

Export-Import Bank of India

Question 3

The arrangement for invoicing, payment and settlement of India's exports and imports in Indian Rupees through Special Rupee Vostro Accounts was first put in place under an RBI circular issued in which year?

Accepted Answer

July 2022

Answer

July 2019

Answer

August 2025

Answer

January 2025

UPSC Prelims Practice Questions — India eyes local currency trade for West Asian oil

Q1. Within India's framework for settling cross-border trade in Indian Rupees, which one of the following is the principal enabling instrument through which a foreign correspondent bank's rupee trade balances are held and settled?

Q2. The framework permitting authorised dealer banks to open Special Rupee Vostro Accounts for settling India's external trade in rupees — central to the proposed local-currency oil trade — is laid down and operationalised by which one of the following?

Q3. The arrangement for invoicing, payment and settlement of India's exports and imports in Indian Rupees through Special Rupee Vostro Accounts was first put in place under an RBI circular issued in which year?