UPSC Prelims 2002 Q122: Indian Economy – Banking & Financial Sector
Consider the following financial institutions of India:
1. Industrial Finance Corporation of India (IFCI)
2. Industrial Credit and Investment Corporation of India (ICICI)
3. Industrial Development Bank of India (IDBI)
4. National Bank for Agriculture and Rural Development (NABARD)
The correct chronological sequence of the establishment of these institutions is
- (a) 1, 2, 3, 4
- (b) 2, 3, 4, 1
- (c) 3, 4, 1, 2
- (d) 4, 1, 2, 3
Answer: (a) 1, 2, 3, 4
Explanation
Chronological order of establishment of financial institutions
| Institution | Year established |
|---|---|
| IFCI | 1948 |
| ICICI | 1955 |
| IDBI | 1964 |
| NABARD | 1982 |
The Industrial Finance Corporation of India was set up in 1948, ICICI in 1955, IDBI in 1964 and NABARD in 1982. The correct chronological sequence is 1, 2, 3, 4.
Answer: (a) 1, 2, 3, 4.
Why each option is right or wrong
- (a) CORRECT. IFCI (1948), ICICI (1955), IDBI (1964), NABARD (1982).
- (b) Incorrect. It puts ICICI before IFCI.
- (c) Incorrect. It puts IDBI before IFCI and ICICI.
- (d) Incorrect. It puts NABARD first, though it is the youngest.
Key point
DFIs: IFCI 1948, SFCs 1951, ICICI 1955, IDBI 1964, UTI 1964, NABARD 1982, SIDBI 1990.
Remember
IFCI 1948, ICICI 1955, IDBI 1964, NABARD 1982.
Common mistakes
- Placing IDBI before ICICI in the sequence.
- Thinking NABARD is older than the industrial banks.
- Confusing the date of IDBI's subsidiary status with its founding.
Exam tip
NABARD (1982) is clearly last and IFCI (1948) first, which leaves one option.
Sources
- RBI — Report on Currency and Finance
- Ramesh Singh — Indian Economy