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Question : Which committee recommended the establishment of the Rural Infrastructure Development Fund (RIDF)?

Option 1: Rangarajan Committee
   

Option 2: Abhijit Sen Committee
   

Option 3: B.K. Chaturvedi Committee

 

Option 4: Narasimham Committee


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 13th Jan, 2024

Correct Answer: Narasimham Committee


Solution : The correct answer is (d) Narasimham Committee.

The Narasimham Committee, headed by M. Narasimham, recommended the establishment of the Rural Infrastructure Development Fund (RIDF). The committee was constituted by the Reserve Bank of India (RBI) in 1991 to examine and suggest reforms for the Indian financial sector.

While the Narasimham Committee focused primarily on financial sector reforms, it also recommended the establishment of the RIDF as a dedicated fund to finance rural infrastructure development projects. The RIDF was subsequently created by the RBI in 1995, based on the committee's recommendations.

The RIDF is managed by the National Bank for Agriculture and Rural Development (NABARD) and provides low-cost loans for the development of rural infrastructure, including irrigation projects, rural roads, electrification, and other related initiatives.

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