“Gold Tranche” (Reserve Tranche) refers to
Answer & explanation
Answer: (d) a credit system granted by IMF to its members
The reserve tranche (historically the 'gold tranche', because that share of the quota was once paid in gold) is the part of a member's IMF quota paid in reserve assets. A member can draw on it from the IMF when needed, so it counts in India's foreign exchange reserves as the Reserve Tranche Position.
- ✓ (d) Each IMF member pays its quota partly in SDRs or usable currencies and partly in its own currency; the gap between the quota and the IMF's holdings of its currency is its reserve tranche position, which it can draw on.
- ✗ (a) The World Bank lends for development projects; quotas and tranches belong to the IMF's financing structure.
- ✗ (c) The WTO is a trade-rules body and does not extend credit to its members.
Remember · India's forex reserves = foreign currency assets + gold + SDRs + Reserve Tranche Position (RTP) in the IMF. Reserve tranche = quota share paid in reserve assets.
Sources
- MoSPI, Statistical Year Book India, Chapter 40: Exchange, Coinage and Currency ↗ “Each member of the IMF is assigned a quota, part of which is payable in SDRs or specified usable currencies ("reserve assets"), and part in the member's own currency. The difference between a member's quota and the IMF's holdings of its currency is a country's Reserve Tranche Position (RTP). … India’s foreign exchange reserves comprise foreign currency assets (FCA), gold, special drawing rights (SDRs) and reserve tranche position (RTP) in the International Monetary Fund (IMF).”
Question and answer: UPSC's official GS Paper I (2020, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·