With reference to Special Rupee Vostro Accounts (SRVA) consider the following statements:1.It is a mechanism to settle international trade in rupees.2.Prior approval of RBI is not required for opening SRVA.Select the correct option using the code given below:

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Notes:

Explanation –

Statement 1 is correct. SRVA is a mechanism to settle international trade in rupees.

Statement 2 is incorrect. Prior approval of RBI is required for opening SRVA.