Explanation:

• Development Finance Institutions (DFIs) provide long-term credit for capital-intensive investments spread over a long period and yielding low rates of return, such as urban infrastructure, mining and heavy industry, and irrigation systems.
• The DFI can have two types of character, either it should be promoted by the government or it should be given a private sector character with the government restricting its holding to 49%.
• DFIs often lend at low and stable rates of interest to promote long-term investments with considerable social benefits. Hence, statement 3 is correct.
• DFIs are also known as Development banks. They are different from commercial banks which mobilise short- to medium-term deposits and lend for similar maturities to avoid a maturity mismatch-a potential cause for a bank’s liquidity and solvency.

Hence both statement 1&2 are incorrect.