indiadigital
Home / Abhyas / Abhyas Prep: Indian Economy (UPSC and MPSC) / Economic institutions
ABHYAS PREP: INDIAN ECONOMY (UPSC AND MPSC) · INSTITUTIONS

Economic institutions

When RBI, SEBI, NABARD, SIDBI, NITI Aayog and others began, and what they do.

Loading practice…

Worked examples

Example 1 · level 1

Which description fits Planning Commission?

  1. set up in 1990 as the main bank for micro, small and medium enterprises
  2. set up in 1950 by a Cabinet resolution to draw up Five-Year Plans
  3. set up in 1988 and given statutory powers by the SEBI Act, 1992, to regulate the share market
  4. first set up in 1975 to give credit to small farmers, labourers and artisans in villages
Show solution
  1. Planning Commission: set up in 1950 by a Cabinet resolution to draw up Five-Year Plans.
  2. Regional Rural Banks: first set up in 1975 to give credit to small farmers, labourers and artisans in villages.
  3. SEBI: set up in 1988 and given statutory powers by the SEBI Act, 1992, to regulate the share market.
  4. SIDBI: set up in 1990 as the main bank for micro, small and medium enterprises.
  5. Source: https://www.indiacode.nic.in/

Answer: set up in 1950 by a Cabinet resolution to draw up Five-Year Plans

Example 2 · level 2

Consider the following statements: 1. NITI Aayog was set up in 2016 under the amended RBI Act to decide the policy repo rate. 2. IRDAI was set up in 1990 as the main bank for micro, small and medium enterprises. Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
Show solution
  1. Statement 1 is wrong: it pairs NITI Aayog with "set up in 2016 under the amended RBI Act to decide the policy repo rate". In fact, NITI Aayog: set up on 1 January 2015 to replace the Planning Commission as the government’s think tank.
  2. Statement 2 is wrong: it pairs IRDAI with "set up in 1990 as the main bank for micro, small and medium enterprises". In fact, IRDAI: set up under the IRDA Act, 1999, to regulate insurance companies.
  3. Source: https://www.indiacode.nic.in/

Answer: Neither 1 nor 2

Example 3 · level 3

Consider the following pairs (Institution : Origin and role): 1. IRDAI : set up under the IRDA Act, 1999, to regulate insurance companies 2. Export-Import Bank of India (EXIM Bank) : set up in 1982 to finance and promote India’s foreign trade 3. Regional Rural Banks : set up under Article 280 of the Constitution to recommend how taxes are shared between the Centre and the States How many of the pairs given above are correctly matched?

  1. Only one pair
  2. Only two pairs
  3. All three pairs
  4. None of the pairs
Show solution
  1. Pair 1 is correct: IRDAI: set up under the IRDA Act, 1999, to regulate insurance companies.
  2. Pair 2 is correct: Export-Import Bank of India (EXIM Bank): set up in 1982 to finance and promote India’s foreign trade.
  3. Pair 3 is wrong: Regional Rural Banks is not set up under Article 280 of the Constitution to recommend how taxes are shared between the Centre and the States. Regional Rural Banks: first set up in 1975 to give credit to small farmers, labourers and artisans in villages.
  4. So 2 of the 3 pairs are correctly matched.
  5. Source: https://www.indiacode.nic.in/

Answer: Only two pairs

My Desk

Private: history and progress stay on this device.

Search by task, life event, format or tool name, in English, हिंदी or Hinglish.