The RBI has announced merger of two funds to create a new Financial Inclusion Fund with a corpus of Rs 2,000 crore to support “developmental and promotional activities” for expanding reach of banking services. After completion of initial five years, the RBI said it had now been decided to merge the Financial Inclusion Fund and the Financial Inclusion Technology Fund into a single Fund — Financial Inclusion Fund (FIF).
The overall corpus of the new FIF will be Rs 2,000 crore. Contribution to FIF would be from the ‘interest differential’ in excess of 0.5% on Rural Infrastructure Development Fund (RIDF) and Short-Term Cooperative Rural Credit (STCRC) deposits on account of a shortfall in the priority sector lending kept with NABARD by banks,” it said while issuing revised guidleines of the new FIF.
The new FIF will be administered by the reconstituted Advisory Board constituted by the government and will be maintained by NABARD.
Did You Know?
- Reserve Bank of India was created during the British rule.
- First headquartered in Calcutta, it was permanently moved to Mumbai in 1937
- Government of India is responsible for minting of coins and printing 1 Rs notes, not the RBI
- The RBI logo was inspired from the East India Company Double Mohur.
- The first woman to become the deputy governor of RBI is K. J. Udeshi. She was appointed in 2003.
- RBI was also the central bank for two other countries. It played the role of Central Bank of Pakistan till June 1948 and the Central Bank of Burma ( Myanmar) till April 1947.
Test Your GK
Name the present Deputy Governors of RBI?