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?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

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

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