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CMA Intermediate · Financial Management and Business Data Analytics · Financial Institutions

Which Indian development financial institution was set up primarily to provide refinance and support for agriculture, rural development and allied activities such as handicrafts and village industries?

NABARD is the correct answer. It is the apex development bank for agriculture and rural development, providing refinance to commercial banks, regional rural banks and cooperatives. SIDBI serves small industries, EXIM Bank serves foreign trade, and the National Housing Bank serves housing finance.

  1. ASIDBI
  2. BNABARDCorrect
  3. CEXIM Bank
  4. DNational Housing Bank

Explanation

NABARD is the apex institution for agriculture and rural development finance, providing refinance to banks and cooperatives. SIDBI focuses on small industries, EXIM Bank on foreign trade finance, and NHB on housing finance, so those options do not match the stated mandate.

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