Fair Practice Code for all NBFCs
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…
Read article
The National Bank for Financing Infrastructure and Development (NBFID)
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…
Read article
Emergence of Universal Banks in India
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…
Read article
Classification of DFIs, Role of DFIs in the Indian Economy
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…
Read article
Reforms in Indian financial system in post- independence: The gap fillers objectives of DFIs
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
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…
Read article