Module: | Deposits, Reserve Ratios & Branch Authorisation
Q297: ATMs installed in Special Economic Zones (SEZs) in India, are permitted to dispense and accept cash in which currency?
✅ Correct Answer: B
The correct answer is B. While Special Economic Zones (SEZs) enjoy specific tax and trade exemptions, the operational guidelines for banking infrastructure remain strictly bound by FEMA.
The regulatory directions explicitly state that all automated teller machines (ATMs) installed within SEZs in India are permitted to dispense and accept cash in Indian Rupee (INR) only.
Dispensing US Dollars or any other freely convertible foreign currency through domestic ATM networks is strictly prohibited.
Therefore, Options A, C, and D are legally incorrect.
The regulatory directions explicitly state that all automated teller machines (ATMs) installed within SEZs in India are permitted to dispense and accept cash in Indian Rupee (INR) only.
Dispensing US Dollars or any other freely convertible foreign currency through domestic ATM networks is strictly prohibited.
Therefore, Options A, C, and D are legally incorrect.