Choose the correct chronological sequence in ascending order (earliest to latest):
(A) FRBM Act
(B) Nationalisation of banks in India
(C) Second five-year plan
(D) Small Industries Development Bank of India (SIDBI)
(E) Export-Import Bank of India (EXIM Bank)
Choose the correct answer from the options given below :

Correct option is A

Correct Answer: 1. (C), (B), (E), (D), (A)

Explanation: The chronological order of the events is as follows:

1. Second Five Year Plan (C): 1956 – 1961. Based on the Mahalanobis model, it focused on rapid industrialization and the public sector.

2. Nationalisation of Banks in India (B): 1969. The first major phase of nationalisation occurred on July 19, 1969, when 14 major commercial banks were nationalised by the Indira Gandhi government.

3. Export Import Bank of India (EXIM Bank) (E): 1982. Established under the Export-Import Bank of India Act, 1981, as a specialized financial institution for financing, facilitating, and promoting India's foreign trade.

4. Small Industries Development Bank of India (SIDBI) (D): 1990. Established on April 2, 1990, under an Act of Parliament (1989) to act as the principal financial institution for the promotion, financing, and development of the MSME sector.

5. FRBM Act (A): 2003. The Fiscal Responsibility and Budget Management Act was enacted to institutionalize financial discipline, reduce India's fiscal deficit, and improve macroeconomic management.

Information Booster

• Second Bank Nationalisation: A second round occurred in 1980, where 6 more banks were nationalised.

• SIDBI Headquarters: Located in Lucknow.

• FRBM Target: The original act aimed to reduce the fiscal deficit to 3% of GDP by 2008.