Major Financial Institutions of India
Major Financial Institutions of India
IFCI (Industrial Finance Corporation of India): It was established in July 1948 by an Act of Parliament. Started with Authorised capital of Rs.10 crores but later raised to Rs. 20 crores. Its Objectives are–
(i) To make medium and long term funds available to Industrial enterprises particularly in those cases where banking accommodation is inappropriate or recourse to the capital market is impracticable.
(ii) It grants loans and advances to industrial undertakings and subscribes to the shares and debentures issued by them which are repayable within 25 years from the date of their issue.
SFC (State Financial Corporation of India):It was established in1951, by the central government authorizing all the states in India to set up SFC of their Capital structure. It is to be decided upon by the state government within the limit of Rs. 50 lakhs to Rs.5 crores.
Its objectives are to meet the financial requirements of all types of industrial enterprises scattered throughout the country. Its functions are:
(i) Granting of loans and advances to small and medium-scale industries engaged in certain specified activities repayable within not more than 20 years.
Major Financial Institutions of India
IDBI (Industrial Development Bank of India): It was set up in July 1964, initially as a wholly owned subsidiary of the RBI but delinked in February 1976 and its ownership was transferred to the capital government. Its authorized capital was Rs. 50 crores but later raised Rs. 2000 crores. Objectives are —
(i) to Co-ordinate with the various financial institution and to provide long-term finance to industrial undertaking.
(ii) To assist in the creation, expansion and modernization of industrial enterprises in the private sector industry in India. Its functions are–
(i) It grants term loans and advances directly to industrial undertakings.
(ii) It refinances long-term loans repayable within 3 to 25 years guaranteed by IFCI, SFC’s and others.
(iii) It helps in fostering the industrial development of the backward areas by taking a number of financial and with an authorized capital of Rs. 50 Crores.
Major Financial Institutions of India
LICI (Life Insurance Corporation of India): It was established 1956 by passing a special Act known as Life Insurance Corporation Act, 1956. Its Initial capital was Rs. 5 crore. Its Objectives: (i)To provide funds for the economic development of the country.
SIDBI (Small Industries Development Bank of India): It was established in1989, by passing a special Act in the Parliament. It started functioning with effect from 2nd April 1990. It is widely owned unit of the Industrial Development Bank of India.
Objectives: (i) To finance the development of small-scale industries and to achieve their rapid development. Functions: (ii) It refinances loans and advances granted by the primary lending institutions to small-scale industries.
Major Financial Institutions of India
ICICI (Industrial Credit and Investment Corporation of India): It was established in January 1955 as a wholly owned private institution under the Indian Companies Act, 1956. Started with an authorized capital of Rs. 50 Crores.
Objectives: (i)To assist in the creation, expansion and modernization of industrial enterprises in the private sector industry in India.
Functions: (ii) To provide loans repayable over a period of 15 years.
NABARD (National Bank of Agriculture and Rural Development: Established on Nov 5, 1982; gives credit facilities Rural Development to farmers.
EXIM (Export-import Bank of India): Set-up on January 1, 1982, grants deferred credit to Indian exporter in order to operate in the international market.
IRBI (Industrial Reconstruction Bank of India): Set-up in 1971 with the objective of reviving and revitalizing sick industrial units in public and private sectors.
NBFCCS (Non-Banking Financial Companies ): Non-Banking Financial entities comprises of NBFCs, mutual benefit financial companies (Nidhi Companies), and mutual benefit companies (potential Nidhi Companies). Department of Company Affairs regulates the mutual benefit financial companies and mutual benefit companies leaving the regulation of NBFCs with the RBI. 0 0 0
Major Financial Institutions of India
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