With reference to the deposit accounts facilities to the NRIs, which among the following is / are rupee-denominated accounts?
1. NRE account
2. NRO account
3. FCNR account
Select the correct option from the codes given below:

Answer: [A] Only 1 & 2

Both NRE and NRO accounts are rupee dominated accounts, which means funds in the NRO/ NRE account are maintained in Indian Rupees. This means that the foreign currency is converted to Indian rupees at the prevailing foreign exchange rates when the money is deposited into the account.

This question is a part of GKToday's Integrated IAS General Studies Module