Question

Arrange these financial institutions chronologically when these were set up in India starting from the earliest to the latest:
A. ARDC
B. AFC
C. NABARD
D. RBI

• A. A, B, D, C
• B. B, A, D, C
• C. C, D, A, B
• D. D, A, B, C

Hint:

The Reserve Bank of India is the central bank and was established before independence (1935), which immediately positions 'D' at the absolute beginning of the sequence.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
Tracking the development of agricultural credit and rural banking institutions helps illustrate the structural history of rural financing in India.

Step 2: Detailed Explanation:
Let us establish the exact setup years for each institution:
1. RBI (Reserve Bank of India) [D]: Established on 1st April 1935 under the Reserve Bank of India Act, 1934.
2. ARDC (Agricultural Refinance and Development Corporation) [A]: Set up initially as the Agricultural Refinance Corporation (ARC) in 1963, and later renamed ARDC in 1975.
3. AFC (Agricultural Finance Corporation) [B]: Incorporated in 1968 to facilitate commercial bank lending to agriculture.
4. NABARD (National Bank for Agriculture and Rural Development) [C]: Established on 12th July 1982 to consolidate rural credit planning and operations.
Thus, the correct chronological order from earliest to latest is D (1935) $\rightarrow$ A (1963) $\rightarrow$ B (1968) $\rightarrow$ C (1982).

Step 3: Final Answer:
The sequence corresponds to Option (D).