RBI bars banks from offshore rupee NDDs

1. Question 1Answer B

   On 1 April 2026 the RBI barred authorised dealer banks from offering which product?

   • AForex swap contracts
   • BCorrect answer: Rupee non-deliverable derivatives
   • CRupee call money loans
   • DExchange-traded currency futures

   Core Trigger: On 1 April 2026 the RBI barred authorised dealer banks from offering rupee non-deliverable derivative contracts to residents and non-residents.From Book 1 RATNA, topic 166, point 1

2. Question 2Answer D

   Why did the RBI impose the bar?

   • ATo boost exports
   • BTo raise forex reserves
   • CTo curb gold imports
   • DCorrect answer: To defend the rupee past 95 per dollar

   Reason: The step came with the rupee past 95 to the dollar, to defend the currency.From Book 1 RATNA, topic 166, point 2

3. Question 3Answer C

   Which Governor heads the Reserve Bank of India?

   • AShaktikanta Das
   • BUrjit Patel
   • CCorrect answer: Sanjay Malhotra
   • DDuvvuri Subbarao

   Current Head: The Reserve Bank of India is headed by Governor Sanjay Malhotra.From Book 1 RATNA, topic 166, point 3

4. Question 4Answer B

   How is a non-deliverable derivative settled?

   • APhysical delivery of rupees
   • BCorrect answer: Cash in dollars
   • CIn gold
   • DIn SDRs

   Key Term: A non-deliverable derivative is cash-settled in dollars; no rupees change hands across borders.From Book 1 RATNA, topic 166, point 4

5. Question 5Answer A

   In which offshore hubs are these contracts settled?

   • ACorrect answer: Singapore and Dubai
   • BLondon and New York
   • CHong Kong and Tokyo
   • DZurich and Frankfurt

   Data: The rupee was past 95 per dollar; the contracts are settled in offshore hubs such as Singapore and Dubai.From Book 1 RATNA, topic 166, point 5

6. Question 6Answer D

   Whom did the bar cover besides authorised dealer banks?

   • AOnly non-resident clients
   • BOnly resident clients
   • COnly foreign portfolio investors
   • DCorrect answer: Resident and non-resident clients

   Stakeholders: Authorised dealer banks and their resident and non-resident clients were covered by the bar.From Book 1 RATNA, topic 166, point 6

7. Question 7Answer C

   In which city is the RBI's central office located?

   • AKolkata
   • BNew Delhi
   • CCorrect answer: Mumbai
   • DChennai

   Headquarters: The RBI's central office is in Mumbai, Maharashtra.From Book 1 RATNA, topic 166, point 8

8. Question 8Answer A

   Consider: 1. The RBI was established on 1 April 1935. 2. It was nationalised on 1 January 1947. Which is/are correct?

   • ACorrect answer: Only 1
   • BOnly 2
   • CBoth 1 and 2
   • DNeither

   Founded: The RBI was established on 1 April 1935 under the RBI Act, 1934, and nationalised on 1 January 1949.From Book 1 RATNA, topic 166, point 9

9. Question 9Answer D

   Which Act did FEMA, 1999 replace?

   • ABanking Regulation Act, 1949
   • BFCRA, 1976
   • CRBI Act, 1934
   • DCorrect answer: FERA, 1973

   Landmark: The Foreign Exchange Management Act, 1999 replaced FERA, 1973, and came into force on 1 June 2000.From Book 1 RATNA, topic 166, point 10

10. Question 10Answer C

    Consider: 1. Section 3 of FEMA bars forex dealing except through authorised persons. 2. Entry 36, Union List covers foreign exchange. Which is/are correct?

    • AOnly 1
    • BOnly 2
    • CCorrect answer: Both 1 and 2
    • DNeither

    Statutes: Section 3 of FEMA bars dealing in foreign exchange except through authorised persons; Entry 36, Union List covers foreign exchange.From Book 1 RATNA, topic 166, point 11

Open these answers in the app (sign-in needed)