Ministry of Finance (India)

The Ministry of Finance (IAST: Vitta Maṃtrālaya) is a

ministry within the Government of India concerned with the Ministry of Finance
economy of India, serving as the Treasury of India. In
particular, it concerns itself with taxation, financial legislation,
financial institutions, capital markets, centre and state finances,
and the Union Budget.[1]

The Ministry of Finance is the apex controlling authority of

four central civil services namely Indian Revenue Service,
Official Logo
Indian Audit and Accounts Service, Indian Economic Service
and Indian Civil Accounts Service. It is also the apex
controlling authority of one of the central commerce services
namely Indian Cost and Management Accounts Service

Contents
History North Block, Central Secretariat
Department of Economic Affairs Agency overview
Department of Expenditure Formed 29 October 1946
Department of Revenue Jurisdiction Government of India
Department of Financial Services Headquarters Cabinet Secretariat
Recruitment Bodies Raisina Hill, New
National Apex Bodies Delhi
Regulatory Bodies Minister Nirmala Sitharaman,
All India Financial Institutions responsible Cabinet Minister
Development Finance Institution
Deputy Bhagwat Karad,
Central Public Sector Undertakings
Ministers Minister of State
Department of Investment and Public Asset responsible Pankaj Choudhary,
Management
Minister of State
Department of Public Enterprises
Agency T. V Somanathan,
See also
executives IAS, Finance
References Secretary &
External links Expenditure
Secretary
Ajai Seth, IAS,
History Economic Affairs
Secretary
Tarun Bajaj, IAS,
Secretary
R. K. Shanmukham Chetty was the first Finance Minister of (Revenue
independent India. He presented the first budget of independent Secretary)
India on 26 November 1947.[2] Vivek Joshi, IAS,
Secretary
Department of Economic Affairs (Financial
Services)
The Department of Economic Affairs is the nodal agency of the Tuhin Kanta Pande,
Union Government to formulate and monitor country's
IAS, Secretary
economic policies and programmes having a bearing on
(Investment and
domestic and international aspects of economic management. A
Public Asset
principal responsibility of this department is the preparation and
presentation of the Union Budget to the parliament and budget Management)
for the state Governments under President's Rule and union V. Anantha
territory administrations. Other main functions include: Nageswaran, Chief
Economic Adviser
Formulation and monitoring of macroeconomic
policies, including issues relating to fiscal policy and Child Department of Economic
public finance, inflation, public debt management agencies Affairs
and the functioning of Capital Market including Stock
Department of
Exchanges. In this context, it looks at ways and
means to raise internal resources through taxation, Expenditure
market borrowings and mobilisation of small savings; Department of Revenue
Monitoring and raising of external resources through
Department of Financial
multilateral and bilateral Official Development
Assistance, sovereign borrowings abroad, foreign Services
investments and monitoring foreign exchange Department of
resources including balance of payments;
Investment and Public
Production of bank notes and coins of various
Asset Management
denominations, postal stationery, postal stamps; and
Cadre management, career planning and training of Department of Public
the Indian Economic Service (IES). Enterprise

The Foreign Investment Promotion Board (FIPB), housed in Key Union Budget (http://i
the Department of Economic Affairs, Ministry of Finance, was documents ndiabudget.nic.in/b
an inter-ministerial body, responsible for processing of FDI udget.asp)
proposals and making recommendations for Government Economic Survey (htt
approval. FIPB is now abolished as announced by Finance p://indiabudget.nic.i
Minister Arun Jaitley during 2017-2018 budget speech in Lok
n/survey.asp)
Sabha.[3]
Website finmin.nic.in (http://fin
Shri Ajay Seth is the current secretary of this department.[4] min.nic.in)

Department of Expenditure
The Department of Expenditure is the nodal department for overseeing the public financial management
system (PFMS) (https://knowledgeinhindi.co.in/pfms-kya-hai-or-yeh-kaise-kaam-karta-hai-in-hindi/) in the
Central Government and matters connected with the state finances. The principal activities of the
department include a pre-sanction appraisal of major schemes/projects (both Plan and non-Plan
expenditure), handling the bulk of the Central budgetary resources transferred to States, implementation of
the recommendations of the Finance and Central Pay Commissions, overseeing the expenditure
management in the Central Ministries/Departments through the interface with the Financial Advisors and
the administration of the Financial Rules / Regulations /Orders
through monitoring of Audit comments/observations, preparation of
Central Government Accounts, managing the financial aspects of
personnel management in the Central Government, assisting
Central Ministries/Departments in controlling the costs and prices
of public services, assisting organizational re-engineering thorough
review of staffing patterns and O&M studies and reviewing
systems and procedures to optimize outputs and outcomes of public
expenditure. The department is also coordinating matters Pranab Mukherjee, Former Finance
concerning the Ministry of Finance including Parliament-related Minister of India with Former US
work of the Ministry. The department has under its administrative President George W. Bush.
control the National Institute of Financial Management (NIFM),
Faridabad.

The business allocated to the Department of Expenditure is carried out through its Establishment Division,
Plan Finance I and II Divisions, Finance Commission Division, Staff Inspection Unit, Cost Accounts
Branch, Controller General of Accounts, and the Central Pension Accounting.

Dr. T. V. Somanathan is the current secretary of this department.[5]

Department of Revenue
The Department of Revenue function under the overall direction and control of the Secretary (Revenue). It
exercises control in respect of matters relating to all the Direct and Indirect Union Taxes through two
statutory Boards namely, the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect
Taxes and Customs (CBIC). Each Board is headed by a Chairman who is also ex officio Special Secretary
to the Government of India (Secretary level). Matters relating to the levy and collection of all Direct taxes
are looked after by the CBDT whereas those relating to levy and collection of GST, Customs Duty, Central
Excise duties and other Indirect taxes fall within the purview of the CBIC. The two Boards were
constituted under the Central Board of Revenue Act, 1963. At present, the CBDT has six Members and the
CBIC has five Members. The Members are also ex officio Secretaries to the Government of India. Members
of CBDT are as follows:

1. Member (Income Tax)

2. Member (Legislation and Computerisation)
3. Member (Revenue)
4. Member (Personnel & Vigilance)
5. Member (Investigation)
6. Member (Audit & Judicial)

Tarun Bajaj is the current secretary of this department, His predecessor was Ajay Bhushan Pandey.[6]

Department of Financial Services

The Department of Financial Services covers Banks, Insurance, and Financial Services provided by
various government agencies and private corporations. It also covers pension reforms and Industrial
Finance and Micro, Small and Medium Enterprise. It started the Pradhan Mantri Jan Dhan Yojana.

Sanjay Malhotra is the current secretary of this department.[7]

This department has ownership over the following central government establishments.

Recruitment Bodies
Institute of Banking Personnel Selection (IBPS)

National Apex Bodies

Indian Institute of Banking and Finance (IIBF)
Insurance Institute of India
Institute of Actuaries of India

Regulatory Bodies

1. Reserve Bank of India (RBI)

2. Securities and Exchange Board of India (SEBI)

Forward Markets Commission (FMC)

National Securities Depository Limited (NSDL)
Central Securities Depository Limited (CSDL)
Association of Mutual Funds of India (AMFI)

3. Insurance Regulatory and Development Authority of India (IRDAI)

4. Pension Fund Regulatory and Development Authority (PFRDAI)

NPS Trust (NPS)

All India Financial Institutions

1. National Bank for Agriculture and Rural Development (NABARD)

2. National Housing Bank (NHB)

3. Small Industries Development Bank of India (SIDBI)

4. Export Import Bank (EXIM Bank)

Development Finance Institution

Industrial Development Bank of India (IDBI)
Industrial Finance Corporation of India (IFCI)
Industrial Reconstruction Company of India (IRCI)
Unit Trust of India (UTI)
India Infrastructure Finance Company Limited (IIFCL)
Agricultural Finance Corporation of India (AFCI)
Industrial and Investment Credit Corporation of India (ICICI)
 Housing Development Finance Corporation (HDFC)
National Bank Financing Infrastructure and Development
Board for Industrial and Financial Reconstruction
Risk Capital and Technology Finance Corporation Limited
Technology Development and Information Company of India Limited
Discount and Finance House of India Limited

Central Public Sector Undertakings

1. Nationalised Banks

Presently there are 13 nationalised banks in India.

State Bank of India

Bank of Baroda
Union Bank of India
Punjab National Bank
Canara Bank
Punjab & Sind Bank
Indian Bank
Bank of Maharashtra
Bank of India
Central Bank of India
Indian Overseas Bank
UCO Bank
Jammu & Kashmir Bank

2. Regional Rural Bank

Presently there are 43 regional rural banks in India since 1 April 2020[8]

Dakshin Bihar Gramin Bank

Andhra Pradesh Uttar Bihar Gramin Bank
Andhra Pragathi Grameena Bank[9] Chhattisgarh
[9]
Andhra Pradesh Grameena Vikas Bank
Chaitanya Godavari Gramin Bank Chhattisgarh Rajya Gramin Bank
Saptagiri Gramin Bank
Gujarat
Arunachal Pradesh
Baroda Gujarat Gramin Bank
Arunachal Pradesh Rural Bank Saurashtra Gramin Bank

Assam Haryana

Assam Gramin Vikash Bank Sarva Haryana Gramin Bank

Bihar Himachal Pradesh

 Himachal Pradesh Gramin Bank Odisha

Jammu and Kashmir Odisha Gramya Bank

Utkal Grameen Bank
J&K Grameen Bank
Ellaquai Dehati Bank Puducherry

Jharkhand Puduvai Bharathiar Grama Bank

Jharkhand Rajya Gramin Bank Punjab

Karnataka Punjab Gramin Bank

Karnataka Gramin Bank Rajasthan

Karnataka Vikas Grameena Bank
Baroda Rajasthan Kshetriya Gramin Bank
Kerala Rajasthan Marudhara Gramin Bank

Kerala Gramin Bank Tamil Nadu

Madhya Pradesh Tamil Nadu Grama Bank

Madhyanchal Gramin Bank Telangana

Madhya Pradesh Gramin Bank
Telangana Grameena Bank
Maharashtra
Tripura
Maharashtra Gramin Bank
Tripura Gramin Bank
Vidharbha Konkan Gramin Bank
Uttar Pradesh
Manipur
Aryavart Bank
Manipur Rural Bank
Prathama UP Gramin Bank
Meghalaya Baroda UP Bank[10]

Meghalaya Rural Bank Uttarakhand

Mizoram Uttarakhand Gramin Bank

Mizoram Rural Bank West Bengal

Nagaland Paschim Banga Gramin Bank

Bangiya Gramin Vikash Bank
Nagaland Rural Bank
Uttarbanga Kshetriya Gramin Bank

3. Nationalised Insurance Companies

Presently there are 07 nationalised insurance companies.

Life Insurance Corporation

General Insurance Corporation of India
 New India Assurance
National Insurance Company Limited
Oriental Insurance Company Limited
United India Insurance Company
Agriculture Insurance Company of India

4. Nationalised Financial Market Exchanges

Presently there are 28 nationalised financial market exchanges in India and currently only six are operating

Operational stock exchange

National Stock Exchange of India

Bombay Stock Exchange
Calcutta Stock Exchange
India International Exchange
Metropolitan Stock Exchange

Operational Commodity Exchanges

Indian Commodity Exchange

Multi Commodity Exchange
National Commodity and Derivatives Exchange
National Spot Exchange
Inter-connected Stock Exchange of India

Defunct stock exchanges

Over the Counter Exchange of India

Hyderabad Stock Exchange
Coimbatore Stock Exchange
Saurashtra Kutch Stock Exchange
Mangalore Stock Exchange
Cochin Stock Exchange
Bangalore Stock Exchange
Ludhiana Stock Exchange
Guwahati Stock Exchange
Bhubaneswar Stock Exchange
Jaipur Stock Exchange
Pune Stock Exchange
Madras Stock Exchange
Uttar Pradesh Stock Exchange
Madhya Pradesh Stock Exchange
Vadodara Stock Exchange
Delhi Stock Exchange
 Ahmedabad Stock Exchange

Department of Investment and Public Asset Management

The Department of Disinvestment has been renamed as Department of Investment and Public Asset
Management or 'DIPAM', a decision aimed at the proper management of Centre's investments in equity
including its disinvestment in central public sector undertakings. Finance Minister Arun Jaitley had
announced the renaming of the Department of Disinvestment in his budget speech for 2016-17. Initially set
up as an independent ministry (The Ministry of Disinvestment) in December 1999, the Department of
Disinvestments came into existence in May 2004 when the ministry was turned into a department of the
Ministry of Finance. The department took up all the functions of the erstwhile ministry which broadly was
responsible for a systematic policy approach to disinvestment and privatisation of Public Sector Units
(PSUs).

Tuhin Kanta Pandey is the current secretary of this department.[11]

Department of Public Enterprises

Department of Public Enterprises which was earlier part of the Ministry of Heavy Industries and Public
Enterprises will now be under Ministry of Finance. Finance Ministry will now have six departments while
DPE's hereto parent ministry, the Ministry of Heavy Industries and Public Enterprises will now be called
the Ministry of Heavy Industries. The shift of DPE to the Finance Ministry will help in efficient monitoring
of the capital expenditure, asset monetisation and financial health of the Central Public Sector Undertakings
(CPSUs).[1] (https://www.moneycontrol.com/news/business/economy/finmin-gets-bigger-department-of-pu
blic-enterprises-now-part-of-finance-ministry-7138721.html)

See also
National Institute of Public Finance and Policy
Minister of Finance (India)
Central Plan Scheme Monitoring System

References
1. "Home | Ministry of Finance | GoI" (https://www.finmin.nic.in/#). www.finmin.nic.in. Retrieved
16 March 2020.
2. Bharadwaj. Study Package For Clat. Tata McGraw-Hill Education. p. 248. ISBN 978-0-07-
069937-3.
3. "Welcome to FIPB (India)" (https://web.archive.org/web/20110828111509/http://www.fipbindi
a.com/index.php). Archived from the original (http://www.fipbindia.com/index.php) on 28
August 2011. Retrieved 16 May 2011.
4. "Meet the Secretary | Department of Economic Affairs | MoF | GoI" (https://dea.gov.in/secretar
y-department-economic-affairs). dea.gov.in. Retrieved 3 March 2020.
5. "Who's Who" (https://doe.gov.in/whos-who).
6. "Revenue Secretary" (http://dor.gov.in/revenue-secretary). Department of Revenue,
Government of India. Retrieved 15 January 2018.
7. "About the Department" (https://financialservices.gov.in/about-us/about-the-department).
8. "list of SCB" (https://m.rbi.org.in/scripts/Bs_viewcontent.aspx?Id=3657).
 9. Kumar, N. Ravi (9 May 2019). "Rural banks to be merged in TS, AP" (https://www.thehindu.c
om/news/cities/Hyderabad/rural-banks-to-be-merged-in-ts-ap/article27084736.ece). The
Hindu.
10. "दैनिक जागरण: बैंकों का विलय : एक हुए UP के तीन बैंक, अब बड़ौदा यूपी बैंक नाम से जाने जाएंगे" (https://ww
w.jagran.com/uttar-pradesh/gorakhpur-city-merger-of-banks-three-banks-of-the-united-up-no
w-known-by-this-name-19793672.html).
11. "Who's who" (http://dipam.gov.in/whos-who-1). Department of Investment and Public Asset
Management. Retrieved 15 January 2018.

External links
Finance Ministry (http://www.finmin.nic.in/)
Official Facebook Page of Ministry of Finance, Govt. of India (https://www.facebook.com/finm
in.goi/)
Income Tax department (http://incometaxindia.gov.in/)
Central Board of Excise and Customs (https://web.archive.org/web/20070528020343/http://
www.cbec.gov.in/)

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