Professional Documents
Culture Documents
Development Banks
Development Banks
i. IFCI: 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.
Objectives of IFCI:
The main objective of IFCI is too provide medium and long term financial assistance to
large scale industrial undertakings, particularly when ordinary bank accommodation does
not suit the undertaking or finance cannot be profitably raised by the concerned by the
issue of shares.
Functions of IFCI:
The Industrial Development Bank of India (IDBI) was established on 1 July 1964 under
an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. The
main objective was to promote and finance the development of industries. In 16 February
1976, the ownership of IDBI was transferred to the Government of India and it was made
the principal financial institution for coordinating the activities of institutions engaged in
financing, promoting and developing industry in the country. Although Government
shareholding in the Bank came down below 100% following IDBI’s public issue in July
1995, the former continues to be the major shareholder.
Role:
Undertakes monitoring and evaluation of projects refinanced by it.
NABARD refinances the financial institutions which finances the rural sector.
It regulates the institution which provides financial help to the rural economy.
It provides training facilities to the institutions working in the field of rural upliftment.
It regulates the cooperative banks and the RRB’s.
The Export-Import Bank of India (Exim Bank) is a public sector financial institution
created by an Act of Parliament, the Export-import Bank of India Act, 1981. The
business of Exim Bank is to finance Indian exports that lead to continuity of foreign
exchange for India. The Exim Bank extends term loans for foreign trade.
D. Housing Development Banks: It includes, for example, National Housing Bank (NHB).
National Housing Bank: The National Housing Bank (NHB) is a state owned bank and
regulation authority in India, created on July 8, 1988 under section 6 of the National
Housing Bank Act (1987). The headquarters is in New Delhi. The institution, owned by
the Reserve Bank of India, was established to promote private real estate acquisition. The
NHB is regulating and re-financing social housing programs and other activities like
research etc. Its vision is promoting inclusive expansion with stability in housing finance
market.