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…
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…
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…
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…
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…
The banks in India were governed under the provision of the Indian Companies Act 1913. The act was found inadequate and unsatisfactory to regulate banking companies in India. Many banks have failed due to inadequacy of capital and a need was felt to prescribe a minimum capital requirement for banks. As there was no licensing…
The 53rd GST Council meeting was held on Saturday. Mrs.Nirmala Sitharaman Union Finance Minister presided over the meeting. “Our intent is to make GST assessees’ lives easier, simpler and less cumbersome… We are working towards less and less compliance,” Union finance minister Nirmala Sitharaman, chairperson of the body, told reporters after the council’s 53rd meeting…
The Sub-Group on Housing Finance for the Seventh Five Year Plan (1985-90) identified the non-availability of long-term finance to individual households on any significant scale as a major lacuna impeding the progress of the housing sector and recommended the setting up of a national-level institution. Although housing is primarily a State subject, the Central govt.…
(RBI Act 1934 comprises various sections, the important sections of the act are mentioned in this post) The Reserve Bank of India the Central Bank of India, was set up based on the recommendations of the Hilton Young Commission in 1935 as a private bank with the enactment of the RBI act 1934. The Reserve…
Banking is a system of financial institutions, such as scheduled Commercial banks, Local Area Banks, Regional Rural banks, cooperative Banks, Payment Banks, and small finance banks that provide various financial services to individuals, businesses, and governments. Let us study them here one by one. Local Area Banks (LABs): Local area banks are referred to as…