Industrial Development Bank of India(IDBI)

The Industrial Development Bank of India was established in the year 1964 by the Act of Parliament
It

is wholly owned subsidiary of the Reserve Bank of India.

it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in the country.

It is currently 10th largest development bank in the world in terms of reach with 1594 ATMs, 1000 branches including one overseas branch at DIFC, Dubai and 678 centers including two overseas centres at Singapore & Beijing.

INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA LIMITED(ICICI)

Industrial Credit and Investment Corporation of India Limited (ICICI) was established in 1955 as public limited company to encourage and assist industrial units in the country

Its objectives, inter alia, include providing assistance in the creation, expansion and modernisation of industrial enterprises, encouraging and promoting participation of private capital both internal and external, in such enterprises, encouraging and promoting industrial development and helping development of capital markets.It provides term loans in Indian and foreign currencies, underwrites issues of shares and debentures, makes direct subscriptions to these issues and guarantees payment of credit made by others.

Functions of the ICICI (i) It provides long-term and mediumterm loans in rupees and foreign currencies. (ii) It underwrites new issues of shares and debentures. (iii) It guarantees loans raised by private concerns from other sources. (iv) It provides technical,managerial and administrative assistance to industrial concerns.

Industrial Finance Corporation of India The IFCI was the 1st specialised financial institution setup in India to provide term finance to large industries in India. It was established on 1st July, 1948 under The Industrial Finance Corporation Act of 1948. In 1993 it was reconstituted as a company to impart higher degree of operational flexibility.

Functions of IFCI
1) For setting up a new industrial undertaking. 2) For expansion and diversification of existing industrial undertaking. 3) For renovation and modernisation of existing concerns. 4) For meeting the working capital requirements of industrial concerns in some exceptional cases.

National Bank for Agriculture and Rural Development

NABARD was established on the recommendations of Shivaraman Committee, by an act of Parliament on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981. It replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India Agricultural Refinance and Development Corporation (ARDC). It is one of the premier agencies to provide credit in rural areas.

Functions of NABARD 1. Providing refinance to lending institutions in rural areas

2. Bringing about or promoting institutional development and 3. Evaluating, monitoring and inspecting the client banks

Regional Rural Bank The Government of India set up Regional Rural Banks (RRBs) on October 2, 1975. Initially, five RRBs were set up on October 2, 1975 which were sponsored by Syndicate Bank, State Bank of Indi, Punjab National Bank, United Commercial Bank and United Bank of India. Capital share being 50% by the central government, 15% by the state government and 35% by the sponcered bank. Earlier Reserve Bank of India had laid down ceilings on the rate of interest to be charged by these RRBs. However from August 1996 the RRBs have been granted freedom to fix rates of interest, which is usually in the range of 14-18% for advances. 25 RRBs are merger in january 2013 into 10 RRBs this counts 67 RRBs till 1st week of january 201

Regional Rural Banks

Andhra Pragathi Grameena Bank Aryavart Gramin Bank Bangiya Gramin Vikash Bank North Malabar Gramin Bank Paschim Banga Gramin Bank Sarva UP Gramin Bank South Malabar Gramin Bank Vananchal Gramin Bank

Function of of RRBs
(i) To provide cheap and liberal credit facilities to small and marginal farmers, agriculture labourers, artisans, small entrepreneurs and other weaker sections. (ii) To save the rural poor from the moneylenders. (iii) To act as a catalyst element and thereby accelerate the economic growth in the particular region. (iv) To cultivate the banking habits among the rural people and mobilize savings for the economic development of rural areas. (v) To increase employment opportunities by encouraging trade and commerce in rural areas. (vi) To encourage entrepreneurship in rural areas. (vii) To cater to the needs of the backward areas which are not covered by the other efforts of the Government?