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Which of the following steps can help to internationalise the rupee?
- Tax incentives to foreign businesses to utilise the rupee in operations in India.
- RBI should pursue a more liquid rupee bond market.
- Indian exporters and importers should be encouraged to invoice their transactions in rupee.
- India signing Currency swap agreements with other countries.
- Rupee must be made more freely convertible.
How many of the above statements are correct?
- a)Only two
- b)Only three
- c)Only four
- d)All five
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
Which of the following steps can help to internationalise the rupee? T...
Many reforms can be pursued to internationalise the rupee. It must be made more freely convertible, with a goal of full convertibility by 2060 – letting financial investments move freely between India and abroad. This would allow foreign investors to easily buy and sell the rupee, enhancing its liquidity and making it more attractive. Additionally, the RBI should pursue a deeper and more liquid rupee bond market, enabling foreign investors and Indian trade partners to have more investment options in rupees, enabling its international use. Indian exporters and importers should be encouraged to invoice their transactions in rupee — optimising the trade settlement formalities for rupee import/export transactions would go a long way. Additional currency swap agreements (as with Sri Lanka) would further allow India to settle trade and investment transactions in rupees, without resorting to a reserve currency such as the dollar.
Additionally, tax incentives to foreign businesses to utilise the rupee in operations in India would also help. The RBI and the Ministry of Finance must ensure currency management stability (consistent and predictable issuance/retrieval of notes and coins) and improve the exchange rate regime.
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Which of the following steps can help to internationalise the rupee? T...
Steps to Internationalise the Rupee:
Tax incentives to foreign businesses to utilise the rupee in operations in India:
- Providing tax incentives can encourage foreign businesses to use the rupee in their operations, thereby increasing its international usage.
RBI should pursue a more liquid rupee bond market:
- A more liquid bond market for the rupee would attract foreign investors and increase the currency's international presence.
Indian exporters and importers should be encouraged to invoice their transactions in rupee:
- Encouraging invoicing in rupee can reduce currency exchange risks for businesses and promote the use of the rupee in international trade.
India signing Currency swap agreements with other countries:
- Currency swap agreements can facilitate trade and investment by providing easier access to the rupee for foreign countries.
Rupee must be made more freely convertible:
- Making the rupee more freely convertible can increase its acceptance and usage in international transactions, making it a more widely recognized currency.
By implementing all of these steps, India can effectively internationalize the rupee and strengthen its position in the global economy.
Tax incentives to foreign businesses to utilise the rupee in operations in India:
- Providing tax incentives can encourage foreign businesses to use the rupee in their operations, thereby increasing its international usage.
RBI should pursue a more liquid rupee bond market:
- A more liquid bond market for the rupee would attract foreign investors and increase the currency's international presence.
Indian exporters and importers should be encouraged to invoice their transactions in rupee:
- Encouraging invoicing in rupee can reduce currency exchange risks for businesses and promote the use of the rupee in international trade.
India signing Currency swap agreements with other countries:
- Currency swap agreements can facilitate trade and investment by providing easier access to the rupee for foreign countries.
Rupee must be made more freely convertible:
- Making the rupee more freely convertible can increase its acceptance and usage in international transactions, making it a more widely recognized currency.
By implementing all of these steps, India can effectively internationalize the rupee and strengthen its position in the global economy.
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Which of the following steps can help to internationalise the rupee? Tax incentives to foreign businesses to utilise the rupee in operations in India. RBI should pursue a more liquid rupee bond market. Indian exporters and importers should be encouraged to invoice their transactions in rupee. India signing Currency swap agreements with other countries. Rupee must be made more freely convertible.How many of the above statements are correct?a)Only twob)Only threec)Only fourd)All fiveCorrect answer is option 'D'. Can you explain this answer?
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Which of the following steps can help to internationalise the rupee? Tax incentives to foreign businesses to utilise the rupee in operations in India. RBI should pursue a more liquid rupee bond market. Indian exporters and importers should be encouraged to invoice their transactions in rupee. India signing Currency swap agreements with other countries. Rupee must be made more freely convertible.How many of the above statements are correct?a)Only twob)Only threec)Only fourd)All fiveCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following steps can help to internationalise the rupee? Tax incentives to foreign businesses to utilise the rupee in operations in India. RBI should pursue a more liquid rupee bond market. Indian exporters and importers should be encouraged to invoice their transactions in rupee. India signing Currency swap agreements with other countries. Rupee must be made more freely convertible.How many of the above statements are correct?a)Only twob)Only threec)Only fourd)All fiveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following steps can help to internationalise the rupee? Tax incentives to foreign businesses to utilise the rupee in operations in India. RBI should pursue a more liquid rupee bond market. Indian exporters and importers should be encouraged to invoice their transactions in rupee. India signing Currency swap agreements with other countries. Rupee must be made more freely convertible.How many of the above statements are correct?a)Only twob)Only threec)Only fourd)All fiveCorrect answer is option 'D'. Can you explain this answer?.
Which of the following steps can help to internationalise the rupee? Tax incentives to foreign businesses to utilise the rupee in operations in India. RBI should pursue a more liquid rupee bond market. Indian exporters and importers should be encouraged to invoice their transactions in rupee. India signing Currency swap agreements with other countries. Rupee must be made more freely convertible.How many of the above statements are correct?a)Only twob)Only threec)Only fourd)All fiveCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following steps can help to internationalise the rupee? Tax incentives to foreign businesses to utilise the rupee in operations in India. RBI should pursue a more liquid rupee bond market. Indian exporters and importers should be encouraged to invoice their transactions in rupee. India signing Currency swap agreements with other countries. Rupee must be made more freely convertible.How many of the above statements are correct?a)Only twob)Only threec)Only fourd)All fiveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following steps can help to internationalise the rupee? Tax incentives to foreign businesses to utilise the rupee in operations in India. RBI should pursue a more liquid rupee bond market. Indian exporters and importers should be encouraged to invoice their transactions in rupee. India signing Currency swap agreements with other countries. Rupee must be made more freely convertible.How many of the above statements are correct?a)Only twob)Only threec)Only fourd)All fiveCorrect answer is option 'D'. Can you explain this answer?.
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