Institutions Set up by RBI

Here are the notes on institutions set up by RBI, with multiple choice questions (MCQs) and answers:

What are the institutions set up by RBI?

The Reserve Bank of India (RBI) has set up a number of institutions to promote the development of the financial sector in India. These institutions include:

  • Deposit Insurance and Credit Guarantee Corporation of India (DICGC): The DICGC is a statutory corporation that provides deposit insurance to depositors of commercial banks and select cooperative banks.
  • Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL): The BRBNMPL is a wholly-owned subsidiary of the RBI that prints currency notes in India.
  • Reserve Bank Information Technology Private Limited (ReBIT): The ReBIT is a wholly-owned subsidiary of the RBI that provides information technology solutions to the RBI and other financial institutions.
  • Indian Financial Technology and Allied Services (IFTAS): The IFTAS is a non-profit organization set up by the RBI to promote the development of financial technology in India.
  • Reserve Bank Innovation Hub (RBIH): The RBIH is a research and development hub set up by the RBI to promote innovation in the financial sector.

What are the objectives of these institutions?

The objectives of these institutions include:

  • To protect the interests of depositors
  • To promote the development of the financial sector
  • To improve the efficiency of the financial system
  • To promote financial inclusion
  • To foster innovation in the financial sector

Multiple Choice Questions (MCQs) on Institutions Set up by RBI

  1. Which of the following institutions is not set up by the RBI?
    • DICGC
    • BRBNMPL
    • ReBIT
    • IFTAS
    • RBIH

The answer is (c). The ReBIT is not set up by the RBI. It is a wholly-owned subsidiary of the RBI.

  1. The DICGC provides deposit insurance to depositors of:
    • All banks in India
    • Only commercial banks in India
    • Only select cooperative banks in India
    • All scheduled banks in India

The answer is (d). The DICGC provides deposit insurance to depositors of all scheduled banks in India.

  1. The IFTAS is a non-profit organization set up by the RBI to:
    • Promote the development of financial technology in India
    • Improve the efficiency of the financial system
    • Promote financial inclusion
    • All of the above

The answer is (d). The IFTAS is a non-profit organization set up by the RBI to promote all of the above.