BANKING AFFAIRS

Detailed explanation-1: -Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India.

Detailed explanation-2: -Initially functioning under the regulatory control of the Reserve Bank of India (RBI) its very first scheme was Unit Scheme 1964 (US-64 ) which soon became one of the most popular savings schemes in the country because it rewarded its unit holders with generous dividends.

Detailed explanation-3: -Unit Scheme-1964 (US-64) was the biggest and most popular scheme of UTI. It was sold and repurchased from unit holders not based on the correct inherent value of the portfolio (net asset value) but on artificial prices fixed by the management.

Detailed explanation-4: -Unit Scheme 1964 (US ‘64) was the first scheme launched by UTI. At the end of 1988, UTI had ₹ 6, 700 crores of Assets Under Management (AUM).