The expression microfinancing has its roots in the 1970s when organizations, such as Grameen Bank of Bangladesh with the microfinance pioneer Mohammad Yunus, were starting and shaping the modern industry of microfinancing. In India, the concept of microfinance first came into existence in 1974 when Mrs. Ela Bhatt started the Self-Employed Women’s Association (‘SEWA’) of…
The RBI on July 2 proposed rationalising regulations that cover export and import transactions to promote ease of doing business and empower banks to provide more efficient service to their foreign exchange customers. “The proposed regulations are intended to promote ease of doing business, especially for small exporters and importers, while sharing the Statement on…
The Reserve Bank vide its circular dated September 28, 2006, issued guidelines on the Fair Practices Code (FPC) for all NBFCs to be adopted by them while doing lending business. The same was revised with the sector including the creation of a New Category of NBFCs viz; NBFC-MFI and the rapid growth in NBFCs lending…
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…
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…
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…
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…
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…
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…
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…