“Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following ?
- (a) Asian Development Bank
- (b) International Monetary Fund ✓ UPSC's answer
- (c) United Nations Environment Programme Finance Initiative
- (d) World Bank
Why the answer is (b)
• The Rapid Financing Instrument (RFI) and Rapid Credit Facility (RCF) are emergency lending windows of the International Monetary Fund that provide quick, low-conditionality assistance to members facing urgent balance-of-payments needs — option (b).
• The RFI is available to all members at the IMF's normal rate; the RCF is the concessional version for low-income countries.
• Both were used heavily during the COVID-19 pandemic to disburse funds within weeks.
• The ADB and World Bank have their own emergency instruments under different names, and UNEP FI is not a lender.
• Hence option (b).
Why the other options are wrong
- (a) Asian Development Bank
- The ADB does not operate the RFI or RCF.
- (c) United Nations Environment Programme Finance Initiative
- UNEP FI is a partnership with financial institutions, not a lender.
- (d) World Bank
- The World Bank's emergency instruments have other names.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2022, held on 5 June 2022. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.