A
The statutory requirement of insuring all rural crop loans directly through NABARD.
B
The underwriting of equity shares by commercial banks during an initial public offering.
C
The legal writing of microfinance contracts in regional scheduled languages.
D
The process by which a lender evaluates the credit risk and financial standing of a borrower before granting credit.
Correct answer: (d) The process by which a lender evaluates the credit risk and financial standing of a borrower before granting credit.
Explanation
Option D is correct as underwriting refers to the evaluation process where lenders assess a borrower's credit risk and financial capacity before sanctioning credit. The other options introduce incorrect financial or linguistic definitions.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2026 · Q98 · General Studies · 2 marks
With reference to different Committees in India, consider the following details: 1. R.N. Malhotra Committee - Comprehensive reforms of Insurance sector in India - Insurance Regulatory and Development Authority of India. 2. L.C. Gupta Committee - Preparing a roadmap for the introduction of derivatives trading in India - Securities and Exchange Board of India. 3. Urjit R. Patel Committee - Preparing a roadmap for reforming bank lending to the Housing sector - Reserve Bank of India. 4. Y.H. Malegam Committee - Preparing a roadmap for reforms in Microfinance sector in India - Reserve Bank of India. In how many of the above rows are all the details correctly matched? -
2021 · Q14 · General Studies · 2 marks
With reference to 'Water Credit', consider the following statements: 1. It puts microfinance tools to work in the water and sanitation sector. 2. It is a global initiative launched under the aegis of the World Health Organization and the World Bank. 3. It aims to enable the poor