Question

The stand-by Letter of Credit (LC) or Bank Guarantee (BG) issued by scheduled commercial banks for Gold (Metal) Loans should be denominated in:

A Indian Rupees. Correct Answer Incorrect Answer
B Foreign currency. Correct Answer Incorrect Answer
C Gold Correct Answer Incorrect Answer
D Euros Correct Answer Incorrect Answer
E Both a) and b) Correct Answer Incorrect Answer

Solution

The stand-by LC/BG issued for Gold (Metal) Loans should be denominated in Indian Rupees, not in foreign currency or any other form.

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