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?
- A1 only
- B2 only
- CBoth 1 and 2Correct
- DNeither 1 nor 2
Explanation
Statement 1 is correct. The National Housing Bank (NHB) was established in 1988 under the National Housing Bank Act, 1987, as a wholly-owned subsidiary of the Reserve Bank of India (RBI). Its initial capital was entirely subscribed by the RBI.
Statement 2 is correct. The Small Industries Development Bank of India (SIDBI) was established in 1990 under an Act of Parliament as a wholly-owned subsidiary of the Industrial Development Bank of India (IDBI). It was set up to promote, finance, and develop micro, small, and medium enterprises (MSMEs).
Since both statements are factually correct regarding the establishment of these institutions, option C is the correct answer.
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