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
- 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.
- 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.
- 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.