Money and Banking (part – II)

Industrial Development Bank of India (IDBI) was established in July, 1964 as an apex financial institution for industrial development in the country. It caters to diversified needs of medium and large scale industries in the form of financial assistance, both direct and indirect. Direct assistance is provided by way of underwriting of or direct subscription to industrial securities, soft loans, project loans etc. While indirect assistance is provided in the form of Refinance facilities to industrial concerns. In 2004, Reserve Bank of India incorporated IDBI as a 'scheduled bank' under the RBI Act, 1934.

The 'Industrial Finance Corporation of India's (IFCI) was established in 1948, 'industrial Credit and Investment Corporation of India' (ICICI) was set up in 1955, 'Industrial Development Bank of India ' (IDBI) was established in July. 1964 and the 'Unit Trust of India (UTI) was established in February, 1964. Hence, the correct sequence is given in option (a).

Export-Import Bank of India was set up in March, 1982 through Exim Bank Act, 1981. It provides financial assistance to exporters and importers with a view to promoting the country's international trade. IDBI was constituted under Industrial Development Bank of India Act, 1964 as a Development Financial Institution (DFI) and came into being on July 01, 1964. While ICICI was formed in 1955 to provide medium- term and long-term project financing to Indian businesses and Board of Industrial and Financial Reconstruction (BIFR) was set up in January, 1987.

The correctly matched list are as follows :

Hence, option (c) is the correct answer.

Steel Authority of India is a marketing institution, while SEBI (Capital Market), SIDBI ( Microfinance ) and NABARD ( Agricultural credit ) are apex institution in their respective fields.

State Bank of India is a commercial bank. So it is not apex institution. While rest are the apex institution in their fields.