FINANCIAL

INSTITUTIONS
IN INDIA
PART – 1

BANKING AWARENESS – DAY 7

- By GOKUL RAJ
SIDBI ✓ Headquarters: Lucknow
Small Industries Development Bank of India ✓ Established: 1990

✓ Present chairman: Mohammad Mustafa

✓ Authorized capital: 1000 crore
✓ Paid up capital: 450 crore
✓ Was a wholly owned subsidiary of IDBI when
formed.
✓ Provides finance for the growth and
development of MSMEs. It also refinances the
loans provided by the lending institutions to
the small industrial units. It also offers facilities
of bills rediscounting, lines of credit and
resource support mechanisms to route
assistance to SSI sector through a network of
banks and State level financial institutions.
IDBI ✓ Established : 1964
Industrial Development Bank of India ✓ Head quarters: Mumbai

✓ Present chairman: Hemant Bhargava

✓ Initially was a subsidiary of RBI and later
transferred to GoI.
✓ IDBI provides financial assistance, both in
rupee and foreign currencies, for green-field
projects and also for expansion, modernisation
and diversification purposes. LIC of India
completed acquisition of 51% controlling stake
in IDBI Bank on January 21, 2019 making it the
majority shareholder of the bank. It provides
technical and administrative assistance for
promotion, management and expansion of
industry
NABARD ✓ Established: 1982
National Bank for Agricultural and Rural ✓ Headquarters: Mumbai
Development
✓ Present chairman: Harsh Kumar Bhanwala
✓ Was established on the recommendations of
the Sivaraman Committee under the NABARD
Act 1981
✓ NABARD is the apex institution that provides finance
to the agricultural sector, small-scale industries,
cottage and village industries, handicrafts and other
rural crafts and other allied economic activities in
rural areas.. Acts as the regulator for Regional Rural
Banks. Provides refinance to lending institutions in
rural areas. NABARD also extends refinance to banks
for financing various Government sponsored
programmes and for development of no
conventional energy sources
NHB ✓ Established: 1988
National Housing Bank ✓ Headquarters: New Delhi

✓ Present chairman: S K Hota

✓ Authorized capital: 2000 crore
✓ Subscribed capital: 1450 crore
✓ Earlier it was a wholly owned subsidiary of RBI,
but now it was wholly owned by Government
of India.
✓ NHB is an apex agency established to operate
as the principal agency to promote housing
finance institutions in India both at local and
regional levels and to provide financial and
other support incidental to such institutions. It
was formed upon the recommendation of C
Rengarajan committee.
EXIM BANK ✓ Established: 1982
Export Import Bank ✓ Headquearters: Mumbai

✓ Present Chairman: T C Venkat Subramanian

✓ Authorised capital: 20,000 crore (previously
10,000 crore, doubled last year)
✓ Government has planned to infuse Rs. 1300
crore into EXIM bank in the next financial year.
✓ The Export-Import (EXIM) Bank of India is the
principal financial institution in India for
coordinating the working of institutions engaged in
financing export and import trade. It was formed for
promoting, financing and facilitating India’s foreign
trade. EXIM bank extends Line of Credit for
promoting exports. Exim Bank provides information,
advisory and support services to enable exporters to
evaluate international risks, exploit export
opportunities and improve their competitiveness.
ECGC ✓ Established: 1957
Export Credit Guarantee Corporation ✓ Headquarters: Mumbai

✓ Present chairman: Geetha Muralidhar

✓ ECGC is a wholly owned subsidiary of GoI.
✓ It is an export promoting organisation aiming
to enhance the Indian Exports by providing
credit insurance covers. It aims to reduce the
risk of payments for Indian exporters. It also
helps the exporters in getting access to export
credits. It guides the exporters in export
related activities and makes them accessible to
information related to the credit worthiness of
foreign buyers with its credit ratings.
DICGC ✓ Established: 1961
Deposit Insurance and Credit Guarantee ✓ Headquarters: Mumbai
Corporation.
✓ Present chairman: B P Kanungo
✓ DICGC is a wholly owned subsidiary of RBI.
✓ DICGC provides deposit insurance, which is a
protection cover for deposit holders in a bank when
the bank fails and does not have money to pay its
depositors. DICGC insures all bank deposits, such as
savings, fixed, current and recurring deposit for up to
the limit of Rs 5 lakh (earlier it was Rs. 1 lakh) per
bank. DICGC covers depositors of all commercial
banks and foreign banks operating in India, state,
central and urban co-operative banks, local area
banks and regional rural banks provided the bank
has bought the cover from DICGC.
MUDRA Bank ✓ Established: 2015
Micro Units Development and Refinance Agency ✓ Headquarters: Mumbai
✓ Chairman: Mohammad Mustafa
✓ The MUDRA banks were set up under the Pradhan
Mantri MUDRA Yojana scheme.
✓ Its main aim is to develop and refinance small and micro
enterprise.
✓ The authorized capital of MUDRA is 1000 crores and
paid up capital is 750 crore, fully subscribed by SIDBI.
✓ This Agency would be responsible for developing and
refinancing all Micro-enterprises sector by supporting the
finance Institutions which are in the business of lending
to micro / small business entities engaged in
manufacturing, trading and service activities. MUDRA
would partner with Banks, MFIs and other lending
institutions at state level / regional level to provide micro
finance support to the micro enterprise sector in the
country.
1. Nomination facility is not available for which of the
following accounts?
2. Which is the rate at which banks park their funds with
RBI?
3. During which year, fourteen Indian commercial banks
were nationalised?
4. When interest is paid at the end of the tenure period
along with the deposit amount it is term as what FD
account?
5. RBI adopts which system for printing and issuing
currency notes?
 – BY
GOKUL RAJ

11