Question

State with reasons whether you agree or disagree with the following statement:

Discount and Finance House of India (DFHI) is a constituent of organised money market of India.

Options

• Agree

• Disagree

Answer 1

I agree with the above statement.

Reasons:

1. The Vaghul Committee's recommendations led to the establishment of the Discount and Finance House of India (DFHI) as a money market institution in 1988.
2. The establishment of the Discount and Finance House of India (DFHI) aimed to supply money market instruments with liquidity.
3. The Reserve Bank of India, public sector banks, and financial institutions collectively own it. Therefore, a part of India's organised money market is the Discount and Finance House of India (DFHI).