1. Which statement about the National Bank for Financing Infrastructure and Development (NaBFID) is INCORRECT?
It focuses on long-term non-recourse infrastructure financing.
It acts as a Development Financial Institution (DFI).
It is regulated and supervised by the RBI.
It accepts demand deposits from the public like a commercial bank.
Explanation:
NaBFID is a specialized DFI established to support long-term infrastructure projects. Unlike commercial banks, DFIs generally do not accept demand deposits (Savings/Current accounts) from the public; they raise funds through bonds, government grants, and multilateral institutions.
2. SIDBI acts as the principal financial institution for the promotion and development of:
Large Corporate Infrastructure.
Micro, Small and Medium Enterprises (MSME).
Export-Import Trade.
Agriculture and Rural Sector.
Explanation:
SIDBI (Small Industries Development Bank of India) acts as the apex regulatory and financing body for the MSME sector in India.
3. Which DFI provides "Buyer’s Credit" to foreign governments and agencies to enable them to import goods from India?
Explanation:
Export-Import Bank of India (EXIM Bank) extends Lines of Credit (LOC) and Buyer's Credit to overseas entities to promote Indian exports.
4. The Rural Infrastructure Development Fund (RIDF) is managed by:
RBI
NABARD
Ministry of Rural Development
SBI
Explanation:
RIDF was set up in NABARD. Banks that fail to meet their Priority Sector Lending targets contribute to this fund, which NABARD uses to finance rural infrastructure projects by state governments.
5. The National Housing Bank (NHB) is fully owned by:
Government of India
State Bank of India
LIC of India
Reserve Bank of India (RBI)
Explanation:
NHB was originally a subsidiary of RBI. However, the Government of India acquired the entire stake of RBI in NHB in 2019, making it a 100% govt-owned entity.
6. Under Priority Sector Lending norms, what is the specific target for "Weaker Sections" for Domestic Commercial Banks?
12% of ANBC
18% of ANBC
15% of ANBC
10% of ANBC
Explanation:
The target for Advances to Weaker Sections (which includes small and marginal farmers, SC/ST, beneficiaries of govt schemes) has been increased to 12% of ANBC (Adjusted Net Bank Credit).
7. Which portal operated by SIDBI acts as a platform for facilitating the financing of trade receivables of MSMEs?
RXIL (TReDS)
Vidya Lakshmi
Udyam Mitra
Standup India
Explanation:
Receivables Exchange of India Ltd (RXIL) is a joint venture promoted by SIDBI and NSE to operate the TReDS platform.
8. NaBFID can raise funds in the form of loans or otherwise from:
Scheduled Commercial Banks.
All of the above.
Central Government and RBI.
Multilateral institutions like World Bank and ADB.
Explanation:
Being a DFI for infrastructure, NaBFID has diverse funding sources, including government grants, loans from RBI/banks, and borrowings from international multilateral institutions.