Which of the following was the first development bank in India?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) - Industrial Finance Corporation of India
The first development bank in India was the Industrial Finance Corporation of India (IFCI). IFCI was established in 1948. The primary goal of establishing this development bank was to help the industrial sector meet its medium- and long-term financial demands. The IFCI's authorized capital is 250 crores. People's deposits are not accepted. When a firm issues shares or debentures, the Industrial Finance Corporation of India may choose to underwrite securities. The IFCI also insures the loans that these industrial enterprises take out. It also ensures deferred payments for loans taken out in foreign currency from foreign banks.