Question

Statement: Exporters in the capital are alleging that commercial banks are violating a Reserve Bank of India directive to operate a post shipment export credit denominated in foreign currency at international rates from January this year.

Courses of Action:
I. The officers concerned in the commercial banks are to be suspended.
II. The RBI should be asked to stop giving such directives to commercial banks.

• A. Only I follows
• B. Only II follows
• C. Either I or II follows
• D. Neither I nor II follows
• E. Both I and II follow

Answer 1

Answer: (D)

Neither I nor II follows

The statement mentions that the commercial banks violate a directive issued by the RBI. The remedy is only to make the banks implement the Act. So, none of the courses follows.