Explanation:

All statements are correct.

• Reserve Tranche Position is accounted among a country's foreign-exchange reserves. Part of the quota can be withdrawn from the IMF without any interest during critical situations of a country such as Balance of Payment (BOP) crises. This part of the money which can be withdrawn without any interest is the RTP.

• Note:  Prior to 1978, the reserve tranche was paid in gold, which was non-interest bearing and known as the gold tranche.

For simple understanding, you know about FOREX reserves maintained by the central bank of India, RBI. Let's understand the components of Forex reserves. There are 4 things:

• Forex reserves can be maintained in 1) Gold; 2) Foreign currency; 3) SDR- Special drawing rights(This is basically, the amount to be kept with IMF-International monetary fund.; 4) Reserve tranche: This is the percentage amount of SDR, as in above mentioned about SDR. So, SDR amount cannot be used by RBI without the permission of IMF, it's just the amount reserved for quota. But, there is one option to use the SDR amount, but only to the certain percentage of SDR. And it is called Reserve tranche.

• Every member country should do monetary contributions to IMF which acts as base fund for lending purpose to members. These contributions should be done via SDRs or other foreign reserve currencies(upto 25% of total fund contributed by that country) and its own currency(INR, CNY, etc..). Reason for local currency is blatant as SDR is manifested or created to settle BoPs.

The amount of SDR with IMF for any member country depends upon its contribution to IMF vis a vis its QUOTA. So Quotas are basically the quantum of SDR a member country can hold.

• Quotas are assigned by IMF according to the relative size of its GDP (50%), Openness (30%), economic variability (15%) and International reserves (5%).

• It is these contributions from the member countries which form the funds of IMF that it gives as loans. A member country pays to IMF by giving 25% (of Quota) in terms of specified foreign currency or SDR and 75% in its own currency.

• Quota (amount paid) = SDR /specified foreign currency (normally 25% of Quota)+ own currency (75% of Quota)

• Reserve Tranche Position= Quota - Own Currency = Foreign Currency/SDRs paid initially for membership.

• Hence reserve tranche position is the portion of the Quota (25% foreign currency/SDR) which can be accessed by member country at any point of time without service fee. These also form part of the foreign exchange reserve of the country.

• The level of India's foreign exchange reserves comprising foreign currency assets (FCA), gold, SDRs and reserve tranche position (RTP) in the IMF, which had touched a low of US$ 5.8 billion at end-March 1991, peaked at US$ 314.6 billion at end-May 2008.

• RBI gives update on RTP in its weekly statistical supplement. RTP keeps on fluctuating due to frequent changes in world’s major currencies’ prices.

Hence option 4th is correct.