Subsidiaries — Set 1

Correct Answer: C. BRBNMPL

• **BRBNMPL** = Bharatiya Reserve Bank Note Mudran Private Limited — the dedicated banknote printing arm of the RBI, set up to increase domestic note production capacity. • **February 1995** — incorporated under the Companies Act as a 100% RBI-owned entity; operates two high-security presses at Mysuru (Karnataka) and Salboni (West Bengal). • It also has an in-house ink manufacturing unit called Varnika to reduce dependence on foreign suppliers. • 💡 SIDBI (Option A) is wrong because it finances small industries, not prints currency; SEBI (Option B) is wrong because it regulates securities markets; NABARD (Option D) is wrong because it refinances rural and agricultural banks.

Correct Answer: B. Bank Deposits

• **Bank Deposits** = DICGC — Deposit Insurance and Credit Guarantee Corporation — insures each depositor's principal and interest up to Rs 5 lakh per bank, in the event of bank failure. • **Rs 5 lakh limit** — raised from Rs 1 lakh to Rs 5 lakh in February 2020; the premium is paid by banks, not by depositors. • Coverage applies to all commercial and cooperative banks registered in India. • 💡 Life Insurance (Option A) is wrong because that is LIC's domain; Vehicle Insurance (Option C) is wrong because it falls under general insurance companies; Crop Insurance (Option D) is wrong because it is handled by PMFBY under the Agriculture Ministry.

Correct Answer: A. Reserve Bank Information Technology Private Limited

• **Reserve Bank Information Technology Private Limited** = ReBIT was incorporated in 2016 to manage all IT requirements of the RBI — system development, cybersecurity, and IT audits of regulated entities. • **2016** — created to let RBI recruit specialist IT talent outside the civil-service pay structure, making it a captive yet agile tech subsidiary. • It also runs a Cyber Lab to simulate and defend against attacks on the Indian banking infrastructure. • 💡 'Regional Bank of Information Technology' (Option B) is wrong — no such entity exists; 'Resource Bank of Indian Technology' (Option C) is wrong — a completely fabricated name; 'Review Board of Information Trust' (Option D) is wrong — also an invented, non-existent body.

Correct Answer: C. IFTAS

• **IFTAS** = Indian Financial Technology and Allied Services — a wholly owned RBI subsidiary that runs the SFMS (Structured Financial Messaging System) and INFINET, the backbone of RTGS and NEFT transactions. • Its corporate office is in Mumbai, and it provides centralised technology support to the entire Indian banking sector. • IFTAS also operates the data centres that ensure high availability and disaster recovery for inter-bank messaging. • 💡 NHB (Option A) is wrong because it regulates and refinances housing finance; SIDBI (Option B) is wrong because it lends to small industries; DICGC (Option D) is wrong because it provides deposit insurance, not IT services.

Correct Answer: C. 2022

• **2022** — RBIH (Reserve Bank Innovation Hub) was incorporated in 2022 as a Section 8 not-for-profit company, fully owned by RBI, to promote responsible financial innovation. • Headquartered in Bengaluru, it bridges regulators, fintechs, and academia to build inclusive digital finance solutions such as digital lending to small farmers. • Being a Section 8 entity, any surplus must be reinvested in its innovation mission — no dividends are distributed. • 💡 2015 (Option A) is wrong — ReBIT was set up around that time, not RBIH; 2018 (Option B) is wrong — no major RBI subsidiary was incorporated that year; 2020 (Option D) is wrong — RBIH's formal incorporation came two years later in 2022.

Correct Answer: B. NHB

• **NHB** = National Housing Bank — established in 1988 as an RBI subsidiary to regulate and refinance housing finance companies; the Government of India acquired RBI's entire 100% stake in 2019. • **2019** — the transfer was driven by the principle that a regulator should not own entities it supervises; NABARD underwent a similar government takeover in the same year. • After 2019, NHB functions under the administrative control of the Ministry of Finance. • 💡 BRBNMPL (Option A) is wrong — it remains 100% owned by RBI; ReBIT (Option C) is wrong — it is still a fully owned RBI subsidiary; IFTAS (Option D) is wrong — it too remains entirely within the RBI group.

Correct Answer: A. Bengaluru

• **Bengaluru** = BRBNMPL's registered and corporate headquarters is in Bengaluru, Karnataka, chosen for proximity to existing government security printing facilities. • **February 1995** — incorporated under the Companies Act, 1956; its two printing presses are in Mysuru and Salboni, separate from the HQ city. • RBI appoints its Board of Directors and holds 100% equity, giving it complete strategic control. • 💡 Mumbai (Option B) is wrong — that is RBI's own headquarters, not BRBNMPL's; New Delhi (Option C) is wrong — SPMCIL (Security Printing and Minting Corporation) is based there, not BRBNMPL; Hyderabad (Option D) is wrong — BRBNMPL has no facility or office there.

Correct Answer: B. DICGC Act, 1961

• **DICGC Act, 1961** = DICGC was created under the Deposit Insurance and Credit Guarantee Corporation Act, 1961, which defines its powers, premium structure, and claim-settlement procedures. • **1978** — the earlier Deposit Insurance Corporation (est. 1962) and Credit Guarantee Corporation of India (est. 1971) were merged to form the present DICGC. • The Act makes registration of all eligible banks with DICGC compulsory. • 💡 RBI Act, 1934 (Option A) is wrong — it governs the central bank itself; Companies Act, 2013 (Option C) is wrong — it is general corporate law; Banking Regulation Act, 1949 (Option D) is wrong — it regulates banking operations, not deposit insurance.

Correct Answer: B. Cybersecurity and IT assets

• **Cybersecurity and IT assets** = ReBIT's core mandate is to secure, maintain, and upgrade the IT infrastructure and cybersecurity posture of the RBI. • Its Cyber Lab simulates real attack scenarios so that RBI's systems remain resilient against evolving digital threats. • It also conducts technical audits of payment system operators and regulated banks on behalf of RBI. • 💡 Monetary Policy records (Option A) is wrong — managed by RBI's own Monetary Policy Department; Currency Reserves (Option C) is wrong — handled by RBI's Issue Department; Foreign Exchange (Option D) is wrong — managed by RBI's Financial Markets Operations Department.

Correct Answer: B. IFTAS

• **IFTAS** = Indian Financial Technology and Allied Services manages the SFMS (Structured Financial Messaging System), the ISO 15022-based secure backbone for all RTGS and NEFT transactions in India. • SFMS replaced the older SWIFT-based model, giving India an indigenous and cost-effective inter-bank messaging infrastructure. • IFTAS also runs INFINET — the closed user-group network through which banks connect to SFMS. • 💡 ReBIT (Option A) is wrong — it handles cybersecurity and IT audits, not financial messaging; DICGC (Option C) is wrong — it is a deposit insurer with no technology infrastructure role; BRBNMPL (Option D) is wrong — it prints banknotes and has no involvement in digital payment messaging.