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 RB

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Q: 27 (IAS/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 Both the schemes stand withdrawn now.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 Only scheme ‘A’ has been withdrawn.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 : Codes :

question_subject: 

Current Affairs

question_exam: 

IAS

stats: 

0,17,52,15,12,25,17

keywords: 

{'only scheme': [0, 1, 0, 0], 'schemes': [0, 2, 3, 7], 'foreign exchange': [0, 0, 1, 0], 'rbi': [1, 4, 2, 23], 'scheme': [0, 0, 1, 0], 'exchange rate fluctuations': [0, 1, 0, 0], 'other banks': [0, 1, 1, 1], 'liberalisation programme': [0, 1, 0, 0]}

Option 1 suggests that only statement III is true, indicating both schemes are withdrawn, which is incorrect. The schemes have different statuses; Scheme `A` was withdrawn while scheme `B` remains.

Option 2 implies that only statements I and II are correct, that RBI bears exchange rate fluctuations for scheme `A` and other banks meet the exchange rate difference for scheme `B`. This option misses the status of the schemes, specifically that scheme `A` has been withdrawn.

Option 3 supports statements I, II, and III, signifying that both schemes were withdrawn, which again is not correct. It`s only scheme `A` that was withdrawn, not scheme `B`.

Option 4, which is the correct answer, supports all statements except III, telling us that scheme `A` is no longer in effect and scheme `B` is now responsible for managing exchange rate differences. This is indeed the correct status of the FCNR-`A` and FCNR-`B` schemes.