1. Which statement about the National Bank for Financing Infrastructure and Development (NaBFID) is INCORRECT?
It accepts demand deposits from the public like a commercial bank.
It focuses on long-term non-recourse infrastructure financing.
It is regulated and supervised by the RBI.
It acts as a Development Financial Institution (DFI).
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).
Agriculture and Rural Sector.
Export-Import Trade.
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:
Ministry of Rural Development
SBI
NABARD
RBI
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:
State Bank of India
LIC of India
Government 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
15% of ANBC
10% of ANBC
18% 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?
Standup India
Vidya Lakshmi
Udyam Mitra
RXIL (TReDS)
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:
All of the above.
Multilateral institutions like World Bank and ADB.
Central Government and RBI.
Scheduled Commercial Banks.
Explanation:
Being a DFI for infrastructure, NaBFID has diverse funding sources, including government grants, loans from RBI/banks, and borrowings from international multilateral institutions.