As per a central government decision taken in the mid two thousands, up to what amount was the Department of Posts in India allowed to invest in revenue generating instruments and or the stock market to help reduce its budgetary deficit?

Introduction / Context:
The Department of Posts, also called the Postal Department, runs a wide network of post offices across India. Traditionally it has depended on budgetary support from the central government, but policy makers have also encouraged it to generate additional income. At one point, the government permitted the Postal Department to invest part of its funds in revenue generating instruments and the stock market. This question asks you to recall the maximum amount sanctioned for such investments to reduce the budgetary deficit.

Given Data / Assumptions:

- The decision relates to a specific ceiling on investment, expressed in crore rupees.

- The investments could be made in revenue generating instruments and or the stock market.

- The policy aim was to reduce the budgetary deficit of the Department of Posts by earning returns on idle funds.

Concept / Approach:
In public finance, non tax departments can sometimes invest surpluses in safe or approved instruments to earn extra income. In this case, exam oriented current affairs noted that the Postal Department was given permission to invest up to ten thousand crore rupees. The other figures in the options, such as two thousand five hundred crore, four thousand five hundred crore, and seven thousand four hundred crore, are distractors. Remembering this specific limit is useful both for banking awareness and for questions on the functioning of postal services in India.

Step-by-Step Solution:
Step 1: Identify the department under discussion, namely the Department of Posts in India. Step 2: Note that the policy allowed the department to invest in revenue generating instruments and the stock market. Step 3: Recall from current affairs that the maximum amount fixed for such investment was ten thousand crore rupees. Step 4: Compare this remembered figure with the four options given. Step 5: Confirm that the option reading Rs 10,000 crore matches the permitted ceiling. Step 6: Select Rs 10,000 crore as the correct answer.

Verification / Alternative check:
News reports and economic survey discussions from that period mention that the central government allowed the Postal Department to invest up to ten thousand crore rupees. The figure appears repeatedly in competitive exam digests when discussing steps taken to reduce the budgetary deficit of postal services. Cross checking such compilations and financial news archives confirms that this number, not the lower figures, is the one officially sanctioned.

Why Other Options Are Wrong:
Rs 2,500 crore, Rs 4,500 crore, and Rs 7,400 crore are not the limits that were mentioned in the government decision. They serve only as plausible sounding numbers to test whether candidates remember the exact figure. Choosing any of these would show uncertainty about the actual ceiling on investment granted to the Postal Department. Since the documented limit was ten thousand crore rupees, these smaller numbers are incorrect.

Common Pitfalls:
Many candidates remember that a large amount was allowed but lose track of the precise figure and guess a smaller rounded value. Others may confuse this limit with unrelated amounts approved for different schemes. To avoid such mistakes, it helps to associate the phrase large investment limit for postal department with the rounded and memorable number of ten thousand crore rupees.

Final Answer:
The Department of Posts was allowed to invest up to Rs 10,000 crore in revenue generating instruments and or the stock market to reduce its budgetary deficit.