Economics • Banking & FinanceMedium
What is the primary function of the 'National Credit Guarantee Trustee Company (NCGTC)' in India?
A. To regulate foreign institutional investments in the Indian equity markets
B. To act as a central agency managing deposit insurance for cooperative banks
C. To operate and manage various credit guarantee trust funds established by the Government of India✓ Correct Answer
D. To supervise housing finance companies alongside the Reserve Bank of India
💡 Solution & Explanation
The National Credit Guarantee Trustee Company operates and manages various credit guarantee trust funds established by the Government of India to facilitate collateral-free lending to sectors like micro, small, and medium enterprises. Unlike deposit insurance agencies or regulatory watchdogs, this company acts purely as a trustee to oversee financial guarantee programs. It functions under the administrative control of the Department of Financial Services within the Ministry of Finance.
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