“Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following ?
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Answer: B. The Rapid Financing Instrument (RFI) and the Rapid Credit Facility (RCF) are emergency lending windows of the International Monetary Fund. They give quick money to member countries facing urgent balance of payments needs, such as after a disaster or a shock like COVID-19. The RCF is the concessional (low-interest) window for low-income countries.
Watch for: The World Bank also lends to countries, but emergency balance of payments facilities like RFI and RCF belong to the IMF.
Why the other options are wrong
- A. Wrong because the ADB's lending windows have different names and these two are IMF facilities.
- C. Wrong because UNEP FI is a partnership with private banks on sustainable finance and does not lend to countries.
- D. Wrong because the World Bank funds development projects, while RFI and RCF are IMF balance of payments support.
Source to check: IMF website (imf.org), factsheets on the Rapid Financing Instrument and Rapid Credit Facility
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.