CLAT GurukulSamudraManthan
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Topic 176 · Economy, Budget & Banking

India's Q4 2025-26 BoP surplus and remittances

10 MCQs · tap an option to check it · All answers

Revise the 12 points first Book 1 RATNA
  1. Core Trigger: On 8 June 2026 the RBI reported a January-March 2026 current account surplus of $7.1 billion, 0.7% of GDP.
  2. Overall Position: The overall balance of payments surplus was about $7.22 billion despite $12 billion of FPI outflows.
  3. Current Head: Sanjay Malhotra is RBI Governor; the RBI compiles and releases India's quarterly BoP data.
  4. Remittances: Workers' remittances were $31.07 billion in the quarter, the most in 13 years and up 34%.
  5. Full Year: Remittances hit a record $110.47 billion in 2025-26, yet the current account ran a $25.2 billion deficit, 0.6% of GDP.
  6. Other Flows: Gold imports cost $71.97 billion in 2025-26, against $58 billion; net FDI in the quarter was $4.2 billion.
  7. India Link: The merchandise trade deficit widened to $83.4 billion, offset by net services receipts of $60.4 billion.
  8. Headquarters: The RBI Central Office first sat in Kolkata and moved permanently to Mumbai in 1937.
  9. Founded: The RBI was established on 1 April 1935 and nationalised in 1949.
  10. Benchmark: The World Bank estimated India as the top remittance recipient in 2024, at about $129 billion.
  11. Statute: The RBI Act, 1934 governs the RBI; remittances are recorded in the secondary income account of the current account.
  12. Definition: Balance of payments records all resident-world transactions; invisibles are services, income and transfers.
Question 1 of 10

The January-March 2026 current account surplus of $7.1 billion was what share of GDP?

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Answer: (A) 0.7%

Core Trigger: On 8 June 2026 the RBI reported a January-March 2026 current account surplus of $7.1 billion, 0.7% of GDP.From Book 1 RATNA, topic 176, point 1

Question 2 of 10

The overall BoP surplus came despite FPI outflows of how much?

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Answer: (B) $12 billion

Overall Position: The overall balance of payments surplus was about $7.22 billion despite $12 billion of FPI outflows.From Book 1 RATNA, topic 176, point 2

Question 3 of 10

Which body compiles and releases India's quarterly BoP data?

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Answer: (C) Reserve Bank of India

Current Head: Sanjay Malhotra is RBI Governor; the RBI compiles and releases India's quarterly BoP data.From Book 1 RATNA, topic 176, point 3

Question 4 of 10

Quarterly remittances of $31.07 billion were the most in how many years?

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Answer: (A) 13

Remittances: Workers' remittances were $31.07 billion in the quarter, the most in 13 years and up 34%.From Book 1 RATNA, topic 176, point 4

Question 5 of 10

Consider: 1. Remittances hit a record $110.47 billion in 2025-26. 2. The current account ran a $25.2 billion surplus that year. Which is/are correct?

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Answer: (A) Only 1

Full Year: Remittances hit a record $110.47 billion in 2025-26, yet the current account ran a $25.2 billion deficit, 0.6% of GDP.From Book 1 RATNA, topic 176, point 5

Question 6 of 10

Gold imports cost $71.97 billion in 2025-26 against about how much before?

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Answer: (B) $58 billion

Other Flows: Gold imports cost $71.97 billion in 2025-26, against $58 billion; net FDI in the quarter was $4.2 billion.From Book 1 RATNA, topic 176, point 6

Question 7 of 10

In which year did the RBI Central Office shift permanently to Mumbai?

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Answer: (D) 1937

Headquarters: The RBI Central Office first sat in Kolkata and moved permanently to Mumbai in 1937.From Book 1 RATNA, topic 176, point 8

Question 8 of 10

The RBI was established on 1 April of which year under the 1934 Act?

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Answer: (C) 1935

Founded: The RBI was established on 1 April 1935 and nationalised in 1949.From Book 1 RATNA, topic 176, point 9

Question 9 of 10

In 2024 the World Bank estimated India's remittances at about how much?

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Answer: (B) $129 billion

Benchmark: The World Bank estimated India as the top remittance recipient in 2024, at about $129 billion.From Book 1 RATNA, topic 176, point 10

Question 10 of 10

Consider: 1. Remittances are recorded in the capital account. 2. Invisibles are services, income and transfers. Which is/are correct?

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Answer: (B) Only 2

Statute: The RBI Act, 1934 governs the RBI; remittances are recorded in the secondary income account of the current account.From Book 1 RATNA, topic 176, point 11

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