Which of the following statements is/are correct with reference to the development finance institution (DFI)?

Which of the following statements is/are correct with reference to the development finance institution (DFI)?

A. The Union Cabinet has recently cleared a Bill to set up a government-owned development finance institution (DFI) with initial paid-up capital of Rs 20,000 crore.

B. The DFI will be fully government-owned initially and the promoter’s stake will be brought down to 26 per cent in the next few years.

C. Both A & B

D. None of these

Explanation:

The union cabinet, on March 16, 2021, approved a bill to set up a Development Finance Institution (DFI), to offer long-term capital support for the sector, in a move that could speed-up the process of infrastructure development in India. The Union Cabinet has recently cleared a Bill to set up a government-owned development finance institution (DFI) with initial paid-up capital of Rs 20,000 crore. The DFI will be fully government-owned initially and the promoter’s stake will be brought down to 26 per cent in the next few years.