Prelims 2022 · Q1
Easy"Rapid Financing Instrument" and "Rapid Credit Facility" are related to the provisions of lending by which one of the following?
Answer & explanation
Answer: (b) International Monetary Fund
Both are emergency lending windows of the International Monetary Fund. They give quick money to a member country hit by an urgent balance of payments need when a full IMF programme is not needed or not possible; the RCF is the concessional (low-income country) version.
- ✓ (b) The IMF's Annual Report 2022 calls the Rapid Credit Facility (RCF) and the Rapid Financing Instrument (RFI) its emergency financing instruments for urgent balance of payments needs.
- ✗ (d) The World Bank lends for long-term development projects and programmes. Short-term balance of payments rescue is the IMF's job, and the IMF says it does not lend for specific projects.
- ✗ (a) The Asian Development Bank is a regional development lender for Asia and the Pacific; the RFI and RCF are not its facilities.
Remember · IMF emergency finance: RFI for any member with an urgent balance of payments need; RCF, on concessional terms, for low-income members through the PRGT.
Sources
- IMF Annual Report 2022 — Lending ↗ “the Rapid Credit Facility (RCF) and the Rapid Financing Instrument (RFI), in order to ensure that member countries have continued access to the IMF’s emergency financing should urgent balance of payments needs arise … IMF lending falls into two categories: loans at interest rates determined by an average of those prevailing among the world’s main currencies and loans to low-income countries on concessional terms.”
Question and answer: UPSC's official GS Paper I (2022, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). Permalink ·