Question

Choose the correct chronological sequence in ascending order (earliest to latest) :
(A) Establishment of NABARD
(B) FRBMA (Fiscal Responsibility and Budget Management Act)
(C) Third Five Year Plan
(D) Nationalization of RBI

• A. (A), (B), (C), (D)
• B. (A), (C), (B), (D)
• C. (D), (A), (B), (C)
• D. (D), (C), (A), (B)

Answer 1

The Correct Option is D

The RBI was nationalized in 1949, followed by the Third Five Year Plan, establishment of NABARD in 1982, and FRBMA in 2003.

Answer 2

The Reserve Bank of India (RBI) was nationalized in 1949, marking a significant shift in the control of India's central banking system. Prior to nationalization, the RBI was privately owned, but after this move, it became a state-owned institution. The nationalization of the RBI aimed to bring the monetary authority under the control of the government, ensuring that it would better serve the nation's economic needs, particularly in terms of managing currency, controlling inflation, and promoting financial inclusion.

In 1961, the government embarked on the Third Five-Year Plan, which focused on accelerating industrial growth, increasing agricultural production, and reducing economic disparities. The plan emphasized the importance of self-reliance and aimed to reduce India’s dependence on foreign aid and imports. It laid the foundation for future industrial policies and set the stage for economic reforms in subsequent decades.

In 1982, the National Bank for Agriculture and Rural Development (NABARD) was established to provide credit and other financial services to the agricultural and rural sectors. NABARD's role is critical in supporting rural development by providing financial assistance to farmers, agricultural projects, and rural infrastructure development. It plays a vital role in achieving the goal of sustainable rural development in India.

The Fiscal Responsibility and Budget Management Act (FRBMA) was enacted in 2003 to promote fiscal discipline and reduce the fiscal deficit. The FRBMA aimed to limit government borrowing and debt accumulation by setting targets for reducing the fiscal deficit and public debt. This legislation was designed to ensure that public finances remained sustainable and that the government could maintain a healthy balance between economic growth and fiscal prudence.