Q4 · UPSC current affairs · 19 September 2026 · News · SEZ Act Section 2z Payment Norms

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Which of the following best describes the recent draft government note regarding SEZ units and the Domestic Tariff Area (DTA)?

A It recommended allowing Indian Rupee payments for services provided by SEZ units to the DTA.
B It banned all imports from the Domestic Tariff Area into Special Economic Zones.
C It abolished customs duties for goods moving from SEZs into foreign territories.
D It mandated that all SEZ transactions must be conducted strictly in US Dollars.

Correct answer: (a) It recommended allowing Indian Rupee payments for services provided by SEZ units to the DTA.

Explanation

Option A is correct because the draft note specifically recommended allowing Indian Rupee payments for services provided by SEZ units to the DTA. The other options misstate the policy change regarding currency and trade flows.

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