General information about major financial institutions of India:
Table of Content:
- What are financial institutions called?
- In what areas do financial institutions operate?
- What types of loans do financial institutions give to people?
- Reserve Bank of India
- Industrial Fineness Corporation Of India
- State Bank Of India
- Indian Mutual Fund or Unit Trust of India
- Life Insurance Corporation of India
- Small Industries Development Bank of India or SIDBI
- Regional Rural Bank
- National Bank for Agriculture and Rural Development
- Punjab National Bank
- National Housing Bank
- Industrial Finance Corporation of India Ltd. (Industrial Finance Corporation of India (IFCI) Ltd)
- All India Development Bank (AIDB)
- All India Development Bank (IDIB)
- General Insurance Corporation of India
- Tourism Finance Corporation of India Limited
- Export Import Bank of India (EXIM Bank)
What are financial institutions called?
Financial Institutions are those institutions that provide financial services (such as depositing customer's money, giving loan to the customer, giving bank draft, fund transfer etc.) to their customers and members. Some examples of financial institutions are banks, building societies, insurance companies, pension fund companies, broker organizations, etc. Financial institutions play an important role in the progress of any country.
In which 2 areas do financial institutions work?
Financial institutions work in the areas of banking, insurance, mutual funds, stock market, home loans, other loans, credit cards. The main job of financial institutions is to control the flow of money in the country.
What types of loans do financial institutions give to people?
These institutions give various types of loans to the people to meet their needs. Like home loan for buying a house, education loan for higher education, automobile loan for car and motorcycle and personal loan for other needs. People deposit their money in banks by opening savings accounts. Apart from this, people also invest in insurance or insurance. Nowadays financial institutions play the role of stockbrokers for the people in the stock market and also in investing capital in mutual funds.
The money collected from the people is used for the development of industries and the country. Financial institutions provide capital not only to private companies but also to the states and the central government for the development work. Let us know about the major financial institutions in India which provide financial services in the country. Friends, you can also read in detail about all the financial institutions below this list:-
Major financial institutions of the country:
- Reserve Bank of India: Reserve Bank of India is the central bank of India. It operates all the banks in India. The Reserve Bank of India controls the economy of India. The Reserve Bank of India was established on 1 April 1935 in accordance with the Reserve Bank of India Act, 1934. Initially its central office was in Kolkata, which was shifted to Mumbai in 1937. Initially it was a private bank but in 1949 it became a Government of India undertaking.
- Industrial Fineness Corporation of India: The Industrial Finance Corporation of India (IFCI) was established on July 1, 1948, as the first development financial institution to meet the long-term financial needs of the industrial sector. The headquarter of Industrial Finance Corporation of India is in New Delhi.
- State Bank of India: State Bank of India Foundation Day is celebrated on 1st July. On 1 July 1955, the Government of India acquired (renamed) Imperial Bank of India and renamed it 'State Bank of India'. State Bank of India is the largest commercial and oldest bank in India. It is also called a scheduled bank. State Bank of India is the largest public sector bank with a network of ten thousand branches and 8,500 ATMs. The headquarter of State Bank of India is in Mumbai.
- Indian Mutual Fund or Unit Trust of India: Indian Mutual Fund is the mutual fund industry of India. The Unit Trust of India was established by the Government of India on 01 February 1964. Unit Trust of India is a leading Mutual Fund of India. It is controlled by a special law, the Unit Trust of India Act, 1963. Indian Mutual Fund is headquartered in Mumbai.
- Life Insurance Corporation of India: Life Insurance Corporation of India is the largest life insurance company in India and also the largest investor company in the country. It is wholly owned by the Government of India. It was established on 01 September 1956 AD. The Headquarters of Life Insurance Corporation of India is in Mumbai.
- Small Industries Development Bank of India or SIDBI: is an independent financial institution of India established with the goal of growth and development of micro, small and medium industries. SIDBI was established on 02 April 1990. The headquarter of SIDBI is in Lucknow.
- Regional Rural Banks: Loans and other matters for agriculture, trade, commerce and other productive activities in rural areas, especially for small and marginal farmers, agricultural labourers, artisans and small entrepreneurs and for matters connected therewith. For the purpose of development of facilities and for the development of rural economy, Regional Rural Banks were established on 02 October 1975 under the provisions of the Ordinance enacted on 26 September 1975 and Regional Rural Banks Act, 1976.
- National Bank for Agriculture and Rural Development: National Bank for Agriculture and Rural Development (NABARD) is an apex bank of India, headquartered in Mumbai, Maharashtra. It has been recognized "in the areas connected with agricultural credit, in policy matters of planning and operations and for other economic activities in rural areas of India." By the National Bank for Agriculture and Rural Development Act (61st of 1981) on 12 July 1982. National Bank for Agriculture and Rural Development was established.
- Punjab National Bank: is one of the major old banks of India. It is also a scheduled bank. Punjab National Bank is the second largest public sector commercial bank in India and has about 4500 branches in 764 cities of India. Punjab National Bank was established on May 19, 1894 under the Indian Companies Act at Anarkali Bazaar, Lahore. The headquarter of Punjab National Bank is in New Delhi.
- National Housing Bank: National Housing Bank is the apex body for housing finance in India. It was established on 09 July 1988 under an Act of Parliament, namely, the National Housing Bank Act, 1987, with the objective of acting as a principal agency for the up-gradation of housing finance institutions and to provide financial and other assistance to such institutions. was. The headquarter of National Housing Bank is in Goregaon (Haryana).
- Industrial Finance Corporation of India Ltd: It was the first development finance institution established in the year 1948 under the IFCI Act to pave the way for providing long term industrial credit to medium and large industries. Its objective is to provide financial assistance to the industry by way of rupee and foreign currency loans, underwriting/subscribing in the issue of stocks, shares, bonds, debentures of industrial firms, etc.
- All India Development Banks (AIDB): These include development banks which not only provide loans to large and medium enterprises but also help in promotion and development of small scale industrial units.
- All India Development Bank (IDIB): It was established in 1964 as an apex financial institution for industrial development in the country. It caters to the needs of medium and large industries in the form of both direct and indirect financial assistance. Direct assistance is provided through project loans, underwriting and direct subscription of industrial securities, cheap loans, technical return loans, etc.
- General Insurance Corporation of India: Pursuant to the General Insurance Business (Nationalisation) Act, 1972 (GIBNA), for the purpose of supervision, control and conduct of business of general insurance and non-life insurance It was formed on 01 November 1972 AD. Initially GIC had four subsidiary branches, namely, National Insurance Company Ltd. The New India Assurance Company Ltd. , The Oriental Assurance Company Ltd. and United India Assurance Company Ltd. , But in the year 2000, these branches were separated from GIC and an organization named 'GIPSA' (General Insurance Public Sector Organization) was formed.
- Tourism Finance Corporation of India Limited: It is a specialized financial institution set up by the Government of India for the promotion and development of the country's tourism industry. It provides financial assistance for non-traditional tourism projects such as amusement parks, ropeways, car rental services, boats for inland water transport, etc., apart from traditional tourism projects.
- Export Import Bank of India (EXIM Bank): Export-Import Bank of India (Exim Bank) was established as a statutory corporation in the year 1982 under the Banks Act, 1981. Exim Bank is a wholly owned government financial institution established for the purpose of financing, facilitating and promoting India's foreign trade.
List of major financial institutions in India:
|Name of the Institution||Year of Establishment|
|Imperial Bank Of India||1921|
|Reserve Bank of India (RBI)||April 1, 1935|
|Industrial Finance Corporation of India (IFCI)||July 1, 1948|
|State Bank Of India (SBI)||July 1, 1955|
|Life Insurance Corporation of India (LIC)||September 1956|
|Export Credit Guarantee Corporation (ECGC)||July, 30 1957|
|Industrial Development Bank of India (IDBI)||July, 1964|
|General Insurance Corporation (GIC)||November, 1972|
|Regional Rural Banks (RRBs)||October 2, 1975|
|Housing Development and Finance Corporation Limited (HDFC)||1977|
|Import Export Bank of India (EXIM Bank)||January 1, 1982|
|Industrial Reorganization Bank of India (IIBIL)||March 20, 1985|
|Board of Industrial and Financial Reconstruction||1987|
|Securities and Exchange Board of India (SEBI)||April 12, 1988|
|National Housing Bank (NHB)||July, 1988|
|Small Industrial Development Bank (SIDBI)||1990|
|Reserve Bank Of India Note Mudran Private Limited||1995|
|Rural Infrastructure and Development Fund (RIDF)||April 1, 1995|
|Infrastructure Development Finance Company (IDFC)||January 31, 1997|
|Unit Trust of India (UTI)||February 1, 2003|
|Division of UTI (UTI-1 & UTI-2)||Feb. 2003|
|Indian Infrastructure Finance Company (IIFCL)||April, 2006|
|National Payments Corporation of India (NPCI)||December 2008|
In the list of institutions given above, an attempt has been made to include institutions from all sectors of the economy such as RIDF, NHB and IDFC are related to the sector of infrastructure. Similarly, UTI and SEBI are related to the capital market. In the examinations conducted in the previous years, it was asked to match the establishment of these institutions correctly, so remember their establishment years carefully.