UPSC Prelims 2002 · General Studies

Question 122: Economy and Social Development

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

a1, 2, 3, 4

b2, 3, 4, 1

c3, 4, 1, 2

d4, 1, 2, 3

AnswerThe answer is (a).

IFCI was set up in 1948 and ICICI in 1955. IDBI followed in 1964, as a subsidiary of the RBI, and NABARD in 1982. So the chronological order is 1, 2, 3, 4. Remember the pattern: IFCI (1948) and ICICI (1955) are the early term-lending institutions, IDBI (1964) the apex development bank, and NABARD (1982) the apex agricultural and rural bank.

1. IFCI, 1948: first.
2. ICICI, 1955: second.
3. IDBI, 1964: third.
4. NABARD, 1982: fourth.

Why each option is right or wrong

(a) Right: IFCI, ICICI, IDBI, NABARD.
(b) Puts IFCI last, though it was the first.
(c) Puts IDBI first, though it was set up in 1964.
(d) Puts NABARD first, though it was set up last, in 1982.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2002, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.