RAS question
The Rajasthan Rajya Vitta Nigam (RRVN / Rajasthan State Finance Corporation) provides:
Correct answer: (D) Term loans to industries.
Rajasthan Financial Corporation provides term finance to tiny, small and medium industries in Rajasthan, including support for setting up and expanding industrial units.
Explanation
Rajasthan Financial Corporation is not a foreign-exchange, crop-credit or housing-finance institution; its role is industrial finance. The official RFC page says the corporation was constituted under the State Financial Corporations Act, 1951 to provide long-term financial support to tiny, small scale and medium scale industries in Rajasthan. Its core function is therefore term lending to industries. This finance helps small and medium industries set up new industrial units and expand existing ones. The key exam distinction is institutional function: RFC supports industrialisation through loan schemes for industrial units, whereas farm credit, housing loans and foreign exchange services belong to different financial channels.
Why the other options are wrong
- (A) Foreign exchange services do not match RFC's stated industrial-finance role and are handled by the RBI framework and authorised dealers, not by a state financial corporation for industries.
- (B) Only crop loans is too narrow and points to agricultural credit channels such as cooperative banks and NABARD-linked finance, while RFC supports tiny, small and medium industries.
- (C) Only home loans describes housing finance, whereas RFC's official function is financial support and loan schemes for industrial units, not residential borrowers.
Concept
This tests Rajasthan economy institutions, especially the purpose of state-level industrial finance bodies. It recurs in RAS because candidates must separate industrial development finance from agricultural credit, housing finance and foreign-exchange functions.