Previous Year Question
National Renewal Fund was constituted for the purpose of
Providing pension for retiring employees
social security
rural reconstruction
restructuring and modernisation of industries
Correct Answer: B
Detailed Solution
The National Renewal Fund (NRF) was announced in the Union Budget 1991-92 and was established in February 1992. Its basic objective was to provide a social safety net to workers affected by economic reforms, technological change, modernisation and industrial restructuring.
It provided assistance such as Voluntary Retirement Scheme (VRS), retraining, counselling and redeployment for affected employees. Thus, restructuring and modernisation of industries were circumstances that could affect workers; the direct purpose of the NRF was not to modernise industries themselves, but to protect the workers affected by such changes.
Current Status (2026): The National Renewal Fund no longer exists. The Government abolished it with effect from 12 July 2000. Thereafter, arrangements relating to VRS and retraining of public-sector employees were administered through other institutional mechanisms.