2024 · Q91
Consider the following statements:
- 1A rupee Vostro account is an account that an Indian bank holds for a foreign bank in the domestic currency (rupee) to enable domestic banks to provide international banking services.
- 2Insurance density, i.e., average insurance premium per capita does not fully capture the financing gap in the event of a premature death because most of the insurance products sold in India are savings-linked with a small component of protection.
Which of the statements given above is/are correct?
General KnowledgeIndian Economy
- A1 only
- B2 only
- CBoth 1 and 2
- DNeither 1 nor 2
Explanation
A rupee Vostro account is an account an Indian bank maintains for a foreign bank in rupees, enabling rupee-denominated international trade settlement — statement 1 is correct and mirrors the Economic Survey's description. Insurance density (premium per capita) understates the protection gap because most Indian insurance products are savings-linked with only a small protection component — statement 2 is correct and mirrors the Economic Survey 2023-24. Both statements are correct. Hence option C is correct.