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1 mark

Which of the following development financial institution combinations is correctly matched with its primary lending focus area?

  1. A
    NABARD - Industrial loans
  2. B
    IDBI - Short-term loans
  3. C
    RBI - Long-term finance
  4. D
    RRB - Agricultural finance

Solution & Step-by-step Explanation

Regional Rural Banks (RRBs) are explicitly structured to meet the credit needs of agriculture, small farmers, rural artisans, and agricultural laborers. In contrast, NABARD focuses on rural and agricultural refinancing (not direct industrial loans), and IDBI was set up for long-term industrial finance.

Practice this question

Try it yourself before checking the explanation above.

Which of the following development financial institution combinations is correctly matched with its primary lending focus area?
A
NABARD - Industrial loans
B
IDBI - Short-term loans
C
RBI - Long-term finance
D
RRB - Agricultural finance

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