Question

Risk capital foundation was established in

• A. 1970
• B. 1975
• C. 1986
• D. 1988

Hint:

For exams on finance and commerce, it's useful to create a timeline of important financial institutions in your country, noting their establishment year and primary function.

Answer 1

The Correct Option is B

Step 1: Understanding the Question:
The question asks for the year of establishment of the Risk Capital Foundation (RCF).
Step 2: Key Concept:
This is a factual question related to the history of financial institutions in India. The Risk Capital Foundation was a specialized institution set up to encourage new and technocrat entrepreneurs by providing them with soft loans or seed capital to help them meet the promoter's contribution requirement.
Step 3: Detailed Explanation:
The Risk Capital Foundation (RCF) was established in 1975 as a society under the Societies Registration Act, 1860. It was sponsored by the Industrial Finance Corporation of India (IFCI). In 1988, the RCF was converted into a company and renamed the Risk Capital and Technology Finance Corporation (RCTC).
Step 4: Final Answer:
The establishment year of the Risk Capital Foundation was 1975. Thus, option (B) is correct.