New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    What is the key risk posed by the U.S. proposal of a 5%

    remittance tax on non-citizens?
    A Discourages U.S. diaspora from investing Correct Answer Incorrect Answer
    B Increases remittances through banks Correct Answer Incorrect Answer
    C Encourages use of informal money transfer channels Correct Answer Incorrect Answer
    D Raises government revenue substantially Correct Answer Incorrect Answer
    E Boosts tourism to India Correct Answer Incorrect Answer

    Solution

    The 5% tax could push remittances to informal channels, undermining regulatory oversight and security.

    Practice Next

    Relevant for Exams: