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Q: The development Fund for MFI's is managed by the _____.
  • A. NABARD
  • B. Ministry of Finance, Govt of India
  • C. State Bank of India
  • D. Reserve Bank of India
Correct Answer: Option D - The development fund for MFI’s is managed by the Reserve Bank of India. Microfinance is a form of financial service which provides small loans and other financial services to poor and low-income households. The source of funding for an MFI is loans from partner banks. The RBI sets an upper limit on the lending rate and margins of MFI's.
D. The development fund for MFI’s is managed by the Reserve Bank of India. Microfinance is a form of financial service which provides small loans and other financial services to poor and low-income households. The source of funding for an MFI is loans from partner banks. The RBI sets an upper limit on the lending rate and margins of MFI's.

Explanations:

The development fund for MFI’s is managed by the Reserve Bank of India. Microfinance is a form of financial service which provides small loans and other financial services to poor and low-income households. The source of funding for an MFI is loans from partner banks. The RBI sets an upper limit on the lending rate and margins of MFI's.