Q. Consider the following statements regarding “differential rate of interest (DRI)”:
1.It was launched in 1992, by the recommendation of Narsimham Committee.
2.It makes obligatory upon all the public sector banks in India to lend 1 per cent of the total lending of the preceding year to the poorest among the poor.
Which of the statements given above is/are correct?
Answer: B
Notes:
Explanation: The differential rate of interest (DRI) is a lending programme launched by the government in April 1972 which makes it obligatory upon all the public sector banks in India to lend 1 per cent of the total lending of the preceding year to ‘the poorest among the poor’ at an interest rate of 4 per cent per annum.
Source: Ramesh Singh