The PIDF was set up for financing ongoing rural Infrastructure projects. What does 'I' stand for in 'RIDF'?

The answer is B) Infrastructure. RIDF stands for Rural Infrastructure Development Fund. The first line of the question says PIDF, which looks like a typo, since the fund that finances rural infrastructure is RIDF.

RIDF was created in NABARD in 1995-96. Its corpus comes from the shortfall of scheduled commercial banks in meeting their agriculture lending target under priority sector lending. NABARD lends this money to state governments and state-owned corporations for ongoing rural projects such as minor irrigation, rural roads, bridges, drinking water and rural electrification.

Why the others are wrong: Income, Interest and Immediate are not part of the name. Interest describes the cost of the loan, not the fund. Immediate is wrong because the scheme finances projects already under way, not quick relief.

Concept: this is the credit-infrastructure link in agricultural finance. It fits Mains GS-3 on agriculture, rural development and the role of NABARD. The annual allocation changes, so memorise the purpose and mechanism, not a fixed amount.

Trap: aspirants pick Interest because the fund is a loan. The name tells you the purpose, and that is infrastructure.