Class 12 Finance Important Chapter 4 Role of the RBI in the Economic Development of India Solutions English Medium As Per The New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 12 Finance Important Solutions in English and select need one. AHSEC Class 12 Finance Additional Notes Download PDF. HS 2nd Year Banking Additional Solutions.
Class 12 Finance Important Chapter 4 Role of the RBI in the Economic Development of India
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. ASSEB Class 12 Banking Additional Question Answer are part of All Subject Solutions. Here we have given HS 2nd Year Finance Important Solutions English Medium for All Chapters, You can practice these here.
Role of the RBI in the Economic Development of India
Chapter: 4
| IMPORTANT QUESTION AND ANSWER |
Short Questions and Answers:
1. What role does the Reserve Bank of India play in promoting agriculture?
Ans: RBI promotes agriculture through credit facilities, schemes like Kisan Credit Card, and by supporting institutions like NABARD and Regional Rural Banks. It also implements schemes like priority sector lending to ensure the agricultural sector receives adequate financial support for growth and development.
2. What is the Credit Authorization Scheme introduced by RBI?
Ans: The Credit Authorization Scheme was introduced in 1965 to regulate credit sanctions above a certain amount. Banks need RBI’s approval for credit over a set limit, ensuring financial discipline, regulating inflation, and directing credit toward productive and essential sectors in the economy.
3. What is the significance of the Banking Ombudsmen Scheme?
Ans: The Banking Ombudsmen Scheme introduced by RBI addresses consumer complaints in the banking sector. It ensures the protection of customer rights by resolving issues related to banking services, improving consumer trust and accountability within the banking industry.
4. How did RBI contribute to the establishment of IDBI?
Ans: RBI established the Industrial Development Bank of India (IDBI) in 1964 as a fully owned subsidiary to provide long-term credit for industrial development. RBI also subscribed to IDBI’s capital and supported its financing role in both public and private sector industries.
5. What is the role of NABARD in agricultural finance?
Ans: NABARD, supported by RBI, plays a crucial role in providing financial support to agriculture and rural development. It provides long-term and short-term loans to farmers, co-operatives, and rural institutions, contributing to the modernization and growth of India’s agriculture sector.
6. What is the Industrial Finance Corporation of India (IFCI)?
Ans: IFCI, supported by RBI, is an institution that provides medium and long-term finance to industrial enterprises. It facilitates the establishment of new industries and the expansion of existing ones, supporting economic growth and industrial development in India.
7. What is the Credit Guarantee Scheme for Small Scale Industries?
Ans: The Credit Guarantee Scheme introduced by RBI in 1960 encourages banks to lend to small-scale industries by protecting them from potential defaults. It provides guarantees for loans, ensuring that small businesses can access credit for growth and expansion.
8. How does the Priority Sector Lending Scheme contribute to the economy?
Ans: The Priority Sector Lending Scheme mandates commercial banks to allocate a portion of their loans to priority sectors like agriculture, education, and housing. This ensures that essential sectors, especially in rural and semi-urban areas, receive adequate financing for development and sustainability.
9. What role does RBI play in regulating foreign trade?
Ans: RBI supports foreign trade by providing refinancing facilities to institutions like ECGC and EXIM Bank. It ensures that financial institutions offer insurance cover, long-term finance, and foreign currency credit, promoting a healthy foreign trade environment and economic stability.
10. How did RBI contribute to the establishment of Regional Rural Banks (RRBs)?
Ans: RBI played a key role in establishing Regional Rural Banks (RRBs) in 1975 to provide formal credit to rural areas. It supported these banks with financial assistance and operational guidance, significantly improving rural credit delivery and ensuring rural economic development.
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