Question

The ______ was established in 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India.

1. Central Bank of India
2. Industrial Development Bank of India
3. State Bank of India
4. Bank of Baroda

Answer 1

Correct Answer - Option 2 : Industrial Development Bank of India

The correct answer is the Industrial Development Bank of India.

• The Industrial Development Bank of India was established in 1964 under an Act of Parliament as a wholly-owned subsidiary of the Reserve Bank of India.

• Industrial Development Bank of India (IDBI):
  • Industrial Development Bank of India was established under the Industrial Development Bank of India Act, 1964.
  • It is the principal financial institution that provides credit and other facilities for developing industries and assisting development institutions.
  • Until 1976, IDBI was a subsidiary bank of RBI.
  • Later it was separated from RBI and the ownership was transferred to the Government of India.
  • IDBI is the tenth largest bank in the world in terms of development. 
  • The Institutions which has been built by IDBI are: 
    • The National Stock Exchange (NSE)
    • The National Securities Depository Services Ltd. (NSDL)
    • Stock Holding Corporation of India (SHCIL)
  • Functions of IDBI:
    • To provide financial assistance to manufacturing enterprises.
    • To promote organisations engaged in industrial development.
    • To provide technical and administrative assistance for promotion management or expansion of the industry.
    • To conduct market and investment research and surveys in connection with the development of the industry.

• The Central Bank of India was founded in the year 1911.
  • Its headquarter is in Mumbai, Maharashtra.
• The Central Bank of India was founded in the year 1955.
  • Its headquarter is in Mumbai, Maharashtra.
• Bank of Baroda was founded in the year 1908.
  • Its headquarter is in Vadodara, Gujarat