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Question No. 139Interactive Test Mode
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Q139. Consider the following statements: 1. In India , Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India. 2. In India , Foreign Institutional Investors can hold the Government Securities (G-Secs). 3. In India , Stock Exchanges can offer Separate trading platforms for debts. Which of the statements given above is/are correct ?

Consider the following statements:

  1. In India , Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India.
  2. In India , Foreign Institutional Investors can hold the Government Securities (G-Secs).
  3. In India , Stock Exchanges can offer Separate trading platforms for debts. Which of the statements given above is/are correct ?
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

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Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2024 • Indian Economy

Correct Answer: Option (D) — 2 and 3 only

Concept & Option Breakdown

Standard Reference Verified

Statement 1 is incorrect: The Liquidity Adjustment Facility (LAF) window of the RBI is primarily accessible to Scheduled Commercial Banks and standalone Primary Dealers, not general Non-Banking Financial Companies (NBFCs). Statement 2 is correct: Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs) are permitted to invest in Government Securities (G-Secs) subject to limits prescribed periodically by the RBI and the Government of India. Statement 3 is correct: Recognized stock exchanges in India, such as NSE and BSE, operate dedicated debt segments and platforms (e.g., NDS-OM and retail debt market platforms) for trading fixed-income instruments and debt securities.

Elimination Heuristic & Exam Approach

NBFCs lack direct central banking liquidity safety nets like normal LAF repos (available to banks/PDs), eliminating options containing 1.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2024 (Q139)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Banking & Financial System
Official Answer KeyOption (D) — 2 and 3 only

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Frequently Asked Questions — UPSC Prelims 2024 Q139

What is the official answer for UPSC Prelims 2024 GS Paper I Question 139 (Indian Economy)?

The official UPSC answer key for this 2024 Indian Economy (Banking & Financial System) question is Option (D): "2 and 3 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2024 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Banking & Financial System". You can explore all repeated questions from Banking & Financial System in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Banking & Financial System UPSC Prelims question using option elimination?

NBFCs lack direct central banking liquidity safety nets like normal LAF repos (available to banks/PDs), eliminating options containing 1.

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