Development Financial Institutions
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary purpose of Development Financial Institutions (DFIs) in India?
DFIs provide medium and long-term finance to industrial and infrastructure sectors that commercial banks typically avoid due to maturity mismatch, thus bridging the gap between short-term commercial credit and long-term developmental needs.
What year was NABARD established and under which Act?
NABARD was established in 1982 under the NABARD Act.
Which institution is considered the apex development finance institution for industry in India?
IDBI (Industrial Development Bank of India) was established in 1964 as the apex DFI for industrial finance in India, though it was later converted into a commercial bank and subsequently re-notified as a DFI in 2021.
What is the full form of SIDBI?
Small Industries Development Bank of India.
When was IFCI (Industrial Finance Corporation of India) established and what was its significance?
IFCI was established in 1948 as the first DFI in India under the Industrial Finance Corporation Act, 1948, to provide medium and long-term credit to industrial concerns that were not adequately served by commercial banks.
Which DFI was set up specifically to finance export and import trade in India?
Export-Import Bank of India (EXIM Bank).
What does SIDBI stand for and what is its mandate?
SIDBI stands for Small Industries Development Bank of India, established in 1990 as the principal financial institution for promotion, financing, and development of small-scale industries and coordinating functions of institutions engaged in similar activities.
What was the original name of the institution that later became IDBI Bank?
Industrial Development Bank of India (IDBI).
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