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    Question

    Why did the Reserve Bank of India (RBI) authorize banks to open additional current accounts for export proceeds in July 2022?

    A To enhance operational flexibility, facilitating smoother export transactions. Correct Answer Incorrect Answer
    B To fortify financial infrastructure, ensuring robust support for exporters. Correct Answer Incorrect Answer
    C To optimize banking mechanisms, offering exporters more strategic options. Correct Answer Incorrect Answer
    D To elevate the efficiency of export-related financial processes and empower exporters. Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    The Reserve Bank of India (RBI) has permitted banks to open additional current account for exports proceeds in addition to special rupee vostro accounts with a view to provide greater operational flexibility to exporters.  In July 2022, the RBI had asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency.

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