Statement: Exporters in the capital are alleging that commercial banks are…
2025
Statement: Exporters in the capital are alleging that commercial banks are violating a Reserve Bank of India directive to operate a post shipment export credit denominated in foreign currency at international rates from January this year.
Courses of Action:
I. The officers concerned in the commercial banks are to be suspended.
II. The RBI should be asked to stop giving such directives to commercial banks.
- A.
Only I follows
- B.
Only II follows
- C.
Either I or II follows
- D.
Neither I nor II follows
Show answer & explanation
Correct answer: D
Concept: In Statement and Courses of Action reasoning, a suggested course of action logically follows only if it is a practical, direct remedy that addresses the root cause described in the statement, without being a disproportionate or punitive overreaction, and without undermining a rule or policy that exists to protect the affected party.
Application: Here the RBI directive exists to secure exporters a fair, internationally-aligned credit rate, and the statement only records an allegation that banks are not implementing it. Suspending the officers (I) punishes individuals before any established wrongdoing is shown, which is disproportionate to a mere allegation. Asking RBI to stop issuing such directives (II) would remove the very safeguard exporters need, rather than fixing the reported non-compliance. Neither action restores compliance with the existing directive.
Cross-check: The real remedy to a compliance problem is to enforce the existing rule, not to punish without evidence (I) or withdraw the rule itself (II). Since neither offered course achieves enforcement of the January directive, neither course follows.