Economics · Financial Institutions
Why were Development Financial Institutions (DFIs) established as separate entities from traditional commercial banks in India?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Because commercial banks were completely nationalized after 1969 and stopped project financing.
- 2Because commercial banks were legally restricted from lending any capital to industrial sectors.
- 3Because commercial banks focused mainly on short-term working capital finance rather than long-term risky investments.✓
- 4Because commercial banks were completely unable to mobilize public deposits.
Correct answer
Because commercial banks focused mainly on short-term working capital finance rather than long-term risky investments.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Financial Institutions MCQs →Want more practice questions on Financial Institutions?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Financial Institutions