As part of the liberalisation programme and with a view to attracting foreign exchange, the Government and the RBI have devised two schemes known as FCNR-'A' and FCNR-'B'. Which of the following is/are true regarding these two schemes? 1. I. Under scheme ‘A’ RBI bears exchange rate fluctuations. 2. II. Under scheme 'B', other banks are to meet out the difference in exchange rate fluctuations. 3. III. Both the schemes stand withdrawn now. 4. IV. Only scheme ‘Aʼ has been withdrawn. Select the correct answer from the codes given below:

1. The question pertains to two schemes, FCNR-'A' and FCNR-'B', related to foreign currency deposits by Non-Resident Indians (NRIs). 2. FCNR stands for Foreign Currency Non-Resident account. 3. Scheme 'A' (FCNR-A): Under the original FCNR scheme (later known as FCNR-A), the exchange rate risk (fluctuations) was borne by the RBI. This scheme provided NRIs an attractive deposit option with guaranteed returns in foreign currency terms, but posed a risk to RBI's reserves. 4. Scheme 'B' (FCNR-B): Introduced in 1993 as part of liberalisation, the FCNR(B) scheme shifted the exchange rate risk from the RBI to the commercial banks accepting the deposits. 5. Withdrawal Status (as of 1995): Scheme 'A' (FCNR-A) was indeed withdrawn in August 1994 due to the exchange risk burden on the RBI. Scheme 'B' (FCNR-B) continued to operate and became the primary FCNR scheme. 6. Evaluating Statements: - I: Correct - Under scheme ‘A’, RBI bore exchange rate fluctuations. - II: Correct - Under scheme 'B', the concerned banks bore the exchange rate risk. - III: Incorrect - Only scheme 'A' was withdrawn by 1995; scheme 'B' continued. - IV: Correct - Only scheme ‘Aʼ had been withdrawn by that time. 7. Therefore, statements I, II, and IV are true.