Which of the following correctly evaluates the two statements regarding the Industrial Development Bank of India (IDBI) before its conversion into a banking company in 2004? Statement I: IDBI was entrusted with the responsibility of coordinating the activities of other developmental financial institutions. Statement II: The Industrial Development Bank of India (IDBI) was established in 1964 by the Government of India under the Industrial Development Bank of India Act, 1964, as a wholly owned subsidiary of the Reserve Bank of India (RBI). In 1976, the ownership of IDBI was transferred to the Government of India.
Both Statement I and Statement II are correct
The Industrial Development Bank of India was set up as India's apex development financial institution (DFI) for industry before it became a commercial bank, IDBI Ltd, in 2004.
Step 1 — Statement II: IDBI was established in July 1964 under the Industrial Development Bank of India Act, 1964, as a wholly owned subsidiary of the Reserve Bank of India. In February 1976 its ownership was transferred to the Government of India. The statement is correct.
Step 2 — Statement I: as the apex institution, IDBI was entrusted with coordinating the activities of the other institutions engaged in financing, promoting and developing industry, such as IFCI, ICICI and the state financial corporations. The statement is correct.
Step 3 — In 2003 the IDBI Repeal Act was passed and in October 2004 IDBI was converted into a banking company, IDBI Bank (IDBI Ltd).
As both statements are accurate, any choice that marks one or both of them as wrong fails.
Both Statement I and Statement II are correct option is correct.
Similar Questions
Which institution set up in 1990 under an Act of the Indian Parliament, acts as the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector?
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2. increase the foreign value of domestic currency
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1. Actions of the United States Federal Reserve
2. Actions of the Reserve Bank of India
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Select the correct answer using the code given below.
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