Question

Risk Capital Foundation was established by

• A. IFCI
• B. UTI
• C. IDBI
• D. ICICI

Hint:

RCF (1975) = Support for entrepreneurs without collateral, by IFCI.

Answer 1

The Correct Option is A

Step 1: Meaning of Risk Capital Foundation.
It was created to provide venture capital to innovative entrepreneurs who lacked access to traditional finance.
Step 2: Establishment.
The Risk Capital Foundation was established by IFCI (Industrial Finance Corporation of India) in 1975.
Step 3: Option analysis.
- (A) IFCI: Correct.
- (B) UTI: Wrong, though UTI supported capital markets, not RCF.
- (C) IDBI: Wrong, IDBI financed industries but not the RCF.
- (D) ICICI: Wrong, involved in industrial finance, not risk capital foundation.
Step 4: Conclusion.
Risk Capital Foundation was established by IFCI.