Consider the following statements: 1. The National Housing Bank, the apex institution of housing finance in India, was set up as a wholly- owned subsidiary of the Reserve Bank of India. 2. The Small Industries Development Bank of India was established as

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Q: 47 (IAS/2004)
Consider the following statements:
1. The National Housing Bank, the apex institution of housing finance in India, was set up as a wholly- owned subsidiary of the Reserve Bank of India.
2. The Small Industries Development Bank of India was established as a wholly-owned subsidiary of the Industrial Development Bank of India.
Which of the statements given above is/ are correct?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,111,108,62,32,111,14

keywords: 

{'subsidiary': [0, 0, 1, 0], 'small industries development bank': [0, 0, 1, 1], 'industrial development bank': [0, 1, 2, 1], 'national housing bank': [0, 0, 1, 0], 'reserve bank': [1, 0, 3, 4], 'apex institution': [0, 0, 1, 0], 'housing finance': [0, 0, 1, 0], 'india': [8, 1, 7, 13]}

This question is related to the banking sector in India.

In Option 1: The National Housing Bank (NHB) was indeed set up as a wholly-owned subsidiary of the Reserve Bank of India (RBI). NHB was established to promote and regulate housing finance institutions in India. This statement is correct.

In Option 2: The Small Industries Development Bank of India (SIDBI) is also a wholly-owned subsidiary but of a different bank, and that bank is The Industrial Development Bank of India (IDBI). SIDBI was established to assist and promote small-scale industries in India. Hence, this statement is also correct.

Option 3: As we have ascertained that both statements are true, picking this option that confirms `Both 1 and 2` are correct would be appropriate.

Option 4: As explained above, both the statements are accurate. Hence choosing this option that denies both of them would be incorrect.

Hence, option 3 is the correct answer.