UPSC CAPF AC 2026 Paper 1 · Question 21

Question 21 of the UPSC CAPF (AC) 2026 Paper I (19 July 2026). Try it first, then open the answer and explanation.

1. CAPF 2026 · P-I · Q21 · Indian Economy · Money, Banking & Inflation

   Consider the following statements about the Special Drawing Facility (SDF): 1. It makes provision of short-term loans by the RBI to the State Governments/UT Governments against Government Securities. 2. Interest rate charged by the RBI on it is the same as Repo Rate. 3. It can be availed by the State Governments/UT Governments only after exhausting the normal Ways and Means Advances limit. Which of the statements given above is/are correct?

   1. 1, 2 and 3
   2. 1 only
   3. 1 and 3 only
   4. 2 and 3 only

   विशेष आहरण सुविधा (SDF) के बारे में निम्नलिखित कथनों पर विचार कीजिए : 1. यह सरकारी प्रतिभूतियों के बदले राज्य सरकारों/संघ राज्यक्षेत्र की सरकारों को RBI द्वारा अल्पावधि ऋणों (loans) का प्रावधान करता है। 2. RBI द्वारा इस पर प्रभारित ब्याज दर, रेपो दर के समान होती है। 3. राज्य सरकारों/संघ राज्यक्षेत्र की सरकारों द्वारा इसका उपयोग केवल अर्थोपाय अग्रिमों की सामान्य सीमा की समाप्ति के पश्चात् ही किया जा सकता है। उपर्युक्त कथनों में से कौन-सा/कौन-से सही है/हैं?

   1. 1, 2 और 3
   2. केवल 1
   3. केवल 1 और 3
   4. केवल 2 और 3
   Show answer

   Answer: (2) 1 only

   उत्तर: (2) केवल 1

   SDF is short-term accommodation the RBI gives States/UTs against the collateral of their investments in Government of India securities (including Treasury Bills), so statement 1 is correct. It is charged below the repo rate (repo rate minus one percentage point) and is availed before WMA, not after the WMA limit is used up, so statements 2 and 3 are wrong.

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