BANKING GENERAL KNOWLEDGE
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1988
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1989
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1987
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1990
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Detailed explanation-1: -The Discount and Finance House of India (DFHI) is a money market institution incorporated in March 1988 and it commenced operation in April 1988. The prime objective of DFHI is to facilitate smoothening of the short-term liquidity imbalances by developing an active secondary market for the money market instruments.
Detailed explanation-2: -First, in order to impart liquidity to money market instruments and help the development of secondary market in such instruments, the Discount and Finance House of India (DFHI) was set up as a money market institution jointly by the Reserve Bank of India, public sector banks and financial institutions in 1988.
Detailed explanation-3: -4.47 Certificates of Deposit (CD), introduced in June 1989, are essentially securitised short-term time deposits issued by banks during periods of tight liquidity, at relatively high interest rates (in comparison with term deposits).
Detailed explanation-4: -However, it was the New Bill Market Scheme (NBMS) introduced by the Reserve Bank of India in November 1970 that provided some impetus to the development of Bill Market.