Marketing Aptitude: Financial Institutions of India
Some of the financial institutions of India are as follows:-
a) National Bank for Agriculture and Rural Development (NABARD)
The National Bank for Agriculture and Rural Development (NABARD) was established on July 12, 1982 by a special Act of parliament. It serves as an apex financing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas. The following are some of the functions of NABARD:-
- It takes measures towards institution building for improving absorptive capacity of the credit delivery system, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, training of personnel, etc.
- It co-ordinates the rural financing activities of all institutions engaged in developmental work at the field level and maintains liaison with Government of India, state governments, Reserve Bank of India (RBI) and other national level institutions concerned with policy formulation
- It undertakes monitoring and evaluation of projects refinanced by it and also refinances the financial institutions which finance the rural sector.
- It regulates the institutions which provide financial help to the rural economy.
- It provides training facilities to the institutions working in the field of rural upliftment and regulates the cooperative banks and the RRB’s.
b) Export-Import Bank of India (EXIM Bank)
The Export-Import Bank of India (EXIM Bank) is a specialized financial institution, wholly owned by the Government of India (GoI), for financing, facilitating and promoting foreign trade of India. It was set up in 1982 by an Act of the Parliament “THE EXPORT-IMPORT BANK OF INDIA ACT, 1981” at Mumbai, Maharashtra. It provide financial assistance to exporters and importers and co-ordinate the working of institutions engaged in financing export and import of goods and services with a view to promote the India’s international trade and for matters connected therewith or incidental thereto.
c) ICICI Bank
The Industrial Credit and Investment Corporation of India (ICCI) Ltd. was established in 1955 at the initiative of World Bank, the Government of India (GoI) and representatives of Indian industry, with the principal objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. The ICICI Bank was originally founded in 1994 by ICICI Limited, an Indian financial institution and was its wholly-owned subsidiary. Its headquarters is in Mumbai, Maharashtra. It provides a comprehensive range of financial and advisory products including project financing for the infrastructure sectors, corporate finance products, lease finance, guarantees and equity products as well as advisory services.
d) Industrial Finance Corporation of India (IFCI Bank)
The Industrial Finance Corporation of India (IFCI) was set up on July 1, 1948 in New Delhi to provide medium and long-term financial assistance to the manufacturing, services and infrastructure sectors. It is a Government Company under Section 2(45) of the Companies Act, 2013. It is also a Systemically Important Non-Deposit taking Non-Banking Finance Company (NBFC-ND-SI), registered with the Reserve Bank of India (RBI). It grants loans only to public limited companies and co-operatives but not to private limited companies or partnership firms, both in rupees and foreign currencies. It also underwrites the issue of stocks, bonds, shares, etc.
e) Small Industries Development Bank of India (SIDBI)
The Small Industries Development Bank of India (SIDBI) is the principal financial institution for the promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector and also co-ordinates the functions of the institutions engaged in similar activities. It was set up on April 2, 1990 under the Small Industries Development Bank of India Act, 1989. It has headquarters in Lucknow, Uttar Pradesh.