Concept:A rupee Vostro account helps Indian banks offer international services, while insurance density in India understates protection due to savings-linked products.
Explanation:A rupee Vostro account is held by an Indian bank for a foreign bank in Indian rupees.
It allows foreign banks to act as intermediaries for international banking in local currency.
This facilitates cross-border trade and remittances.
Thus, statement 1 is correct.Insurance density is the average premium per person.
In India, most insurance products are savings-oriented with a small protection component.
Therefore, insurance density does not fully show the financial gap in case of premature death.
Hence, statement 2 is also correct.Answer:Both 1 and 2 (Option C).