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JAIIB IE&IFS Unit 23 — Development Financial Institutions: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)

This page is a free slice of our JAIIB IE&IFS question bank for Unit 23 — Development Financial Institutions (Module C — Indian Financial Architecture). The Mock Centre holds 101 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

IE&IFS · Module C101 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. DFI = development bank (long/medium-term capital-formation credit, ~10-yr tenors, fixed-asset mortgages); first = IFCI 1948; SFC Act 1951; RBI regulation power 1964, definition 45-I(c) 1974.
  2. Lineage: RCI(1958)→IDBI; ARC(1963)→ARDC→NABARD(12-7-1982, CRAFICARD-Sivaraman); UTI+IDBI 1964; EXIM carved from IDBI (Act 1981, ops Mar 1982); SIDBI carved from IDBI (Act 1989, ops 2-4-1990); SCICI(ICICI 1986→1997); TFCI(IFCI 1989).
  3. Four categories: development banks (IFCI/IDBI/ICICI/SIDBI/NaBFID), specialised (EXIM), investment (LIC/UTI/GIC), state-level (SFC/SIDC); refinance trio SIDBI/NABARD/NHB.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
A DFI's main job is:
Why (b): A DFI's main job is LONG-TERM CREDIT FOR CAPITAL FORMATION — patient money for factories and projects that take years to pay back.
Question 2 of 5
IFCI was established in:
Why (a): IFCI was established on 1 JULY 1948 — within a year of independence, development finance began.
Question 3 of 5
DFIs classify into categories numbering:
Why (c): Development banks, specialised FIs, investment institutions, state-level institutions.
Question 4 of 5
IFCI's core business:
Why (b): IFCI's core business: PROJECT FINANCING — long-term loans to industrial projects.
Question 5 of 5
EXIM Bank is owned by:
Why (b): EXIM Bank is owned 100% by THE GOVERNMENT OF INDIA — a fully sovereign export-credit institution.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
IFCI 1948ICICI 1955First (statutory) vs World Bank (private) DFI
1964 (regulation)1974 (definition)RBI's power vs the precise 45-I(c)
Practise all 101 questions on Unit 23. The free demo opens a slice of every subject with the same explanations; the IE&IFS Online-only pass unlocks all 3,032 IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.