“Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following?
✓ Correct answer: b) International Monetary Fund
ExplanationRapid Financing Instrument (RFI) and Rapid Credit Facility (RCF) are instruments of the International Monetary Fund (IMF) which provides financial assistance to the countries in need.Rapid Financing Instrument (RFI) : The Rapid Financing Instrument (RFI) provides rapid financial assistance, which is available to any IMF member countries facing an urgent balance of payment needs.The RFI was created as UPSC GS Paper-I PYQs 306 part of a broader reform to make the IMF’s financial support more flexible to address the diverse needs of member countries.It is one of the facilities under the General Resources Account (GRA) that provide financial support to countries, including in times of crisis.Rapid Credit Facility (RCF): The Rapid Credit Facility (RCF) provides rapid concessional financial assistance to low-income countries (LICs) facing an urgent Balance of Payments (BoP) need with no ex post conditionality where a full-fledged economic program is neither necessary nor feasible.The RCF was created under the Poverty Reduction and Growth Trust (PRGT) as part of a broader reform to
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