money supply, banking & financial institutions section 7 MCQ Questions & Answers Detailed Explanation

Answer: (c)

Answer: (c)

Answer: (d)

National Housing Bank (NHB) was set up in 1988 under the National Housing Bank Act, 1987. It operates as a principal agency to promote Housing Finance Companies (HFC) both at local and regional levels and to provide financial and other support to such institutions.

NHB is regulated by RBI. Earlier, NHB regulated the activities of HFCs based on regulatory and supervisory authority derived under the NHB Act 1987, but now RBI does it.

It does not extend direct credit at the individual level but extends indirect financial assistance by way of refinancing (i.e. NHB finances those institutions which provide finance to individual borrowers, builders etc.)

Answer: (d)

Continuing its financial inclusion drives, RBI has announced a “National Strategy for Financial Inclusion (NSFI)” for India 2019-2024.

The NSFI sets forth the vision and key objectives of the financial inclusion policies in India to help expand and sustain the financial inclusion process at the national level through a broad convergence of action involving all the stakeholders in the financial sector.

The strategy aims to provide access to formal financial services in an affordable manner, broadening & deepening financial inclusion and promoting financial literacy & consumer protection.

Following are the strategic objectives/pillars of the National Strategy for Financial Inclusion.

1. Universal Access to Financial Services
2. Effective co-ordination
3. Providing a basic bouquet of financial services
4. Customer protection and grievance redressal
5. Financial literacy and education
6. Access to livelihood and skill development
7. Some of the important milestones under the NSFI are:
8. Banking access to every village within 5-km of the radius or a hamlet of 500 households in hilly areas by March 2020
9. Every adult should have access to the financial service provider through a mobile device by March 2024
10. Every willing and eligible adult, who has been enrolled under the PMJDY, should be enrolled under an insurance scheme (PMJJBY, PMSBY, etc.), and a pension scheme (NPS, APY, etc.) by March 2020
11. Public Credit Registry (PCR) fully operational by March 2020

Answer: (c)

Answer: (d)

The GIC was formed in November 1972 consequent upon the nationalisation of the general insurance business.

The 107 private companies operating in the field were grouped together into four - National Insurance Company, United India Insurance Company, Oriental Insurance Company and New India Assurance Company, with GIC as the holding company.