2024 – Page 31 – Banking School

The National Bank for Financing Infrastructure and Development (NBFID)

Indian Financial SystemBy Surendra Naik July 1, 2024

The National Bank for Financing Infrastructure and Development (NaBFID/NBFID) was established as an infrastructure-focused development financial institution (DFI) under the National Bank for Financing Infrastructure and Development Act, 2021 to support the development of long-term non-recourse infrastructure financing in India including the development of bonds and derivatives markets necessary for infrastructure financing and to carry…

Emergence of Universal Banks in India

Indian Financial SystemBy Surendra Naik July 1, 2024

A universal bank is a kind of bank that takes part in diverse kinds of banking activities related to activities of both a commercial bank and an investment bank as well as providing other financial services such as insurance. Universal Banks are also called full-service financial firms, as they offer traditional banking facilities extended by…

Classification of DFIs, Role of DFIs in the Indian Economy

Indian Financial SystemBy Surendra Naik June 30, 2024

A Development Financial institution (DFI) may be defined as “a financial institution endorsed or supported by the Government of India primarily to provide development/Project finance to one or more sectors or sub-sectors of the economy. DFIs differentiate their role as providers of the long-term capital needs of the economy in a significant manner. They emphasize…

The gap fillers objectives of DFIs and reforms in Indian financial system in post- independence

Indian Financial SystemBy Surendra Naik June 30, 2024

At the early stage of independence, there were no long-term financing institutions in India. The role of commercial banking at that time was limited to working capital financing on a short-term basis. Therefore, the role of DFIs was to recognize the gaps in institutions and markets in our financial sector and act as a gap-filler…

Evolution of DFIs in India

Indian Financial SystemBy Surendra Naik June 29, 2024

At the time of independence of India, the role of commercial banking was limited to working capital financing on a short-term basis. Though demand for capital was growing rapidly, there was a lack of providers of capital. The commercial banks of that time were not equipped well enough to provide for long-term capital needs in…

No changes in Interest rate for small savings instruments for July-September 2024

Investments & InsuranceBy Surendra Naik June 28, 2024

The government, on Friday, announced the interest rates for small savings schemes applicable for the quarterJuly-September 2024. It means the interest rates remain unchanged from those notified for the first quarter March-June 2024. The interest rates applicable to various instruments of Small Savings are as follows. Scheme Interest rate for July-Sept. 2024 Interest rate for…

SIDBI: Role of Small Industries Development Bank of India in growth of MSME sector

Indian Financial SystemBy Surendra Naik June 27, 2024

Small Industries Development Bank of India (SIDBI) set up on 2nd April 1990 under an Act of the Indian Parliament, acts as the Principal Financial Institution for the Promotion, Financing, and Development of the Micro, Small, and Medium Enterprise (MSME) sector as well as for co-ordination of functions of institutions engaged in similar activities. The…

Role of IFCI in industrial developments in India

Indian Financial SystemBy Surendra Naik June 27, 2024

At the initial stage of Indian independence, the Capital Markets were relatively less developed. Though demand for capital was growing rapidly, there was a lack of providers of capital. The commercial banks of that time were not equipped well enough to provide for long-term capital needs in any significant manner. Given this, the Government of…

Industrial Development Bank of India (IDBI)

Indian Financial SystemBy Surendra Naik June 26, 2024

At the beginning of post-independence, the role of commercial banking in India was limited to working capital financing on a short-term basis, so the thrust of DFIs was on long-term finance to the industry and infrastructure sector in India. The role of DFIs was to recognize the gaps in institutions and markets in our financial…

Industrial Credit Investment Corporation of India (ICICI)

Indian Financial SystemBy Surendra Naik June 26, 2024

The Industrial Credit and Investment Corporation of India (ICICI), the first development finance institution in the private sector, came to be set up in January 1955, with the backing and funding of the World Bank. The primary objective of ICICI was to develop small and medium industries in the private sector. After the merger of…

Yearly Archives: 2024