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ECONOMIC
SEM -VI

1. OGATA Global. Anti Terrorism Assistance

2. NABARD - National Bonk for Agriculture and Rural Development.
3. GIC Guaranteed Investment Certificate.
4. IBRD International Bank for Reconstruction and Development.
5. ICICI- Industrial Credit and Investment Corporation. of India (Bank)
6. IFCI- Industrial Finance Corporation of India.
7. IFC- International Finance Corporation.
8. UNO - United Nations Organization
9. VAT - Value Added Tax.
10. IMF - International Monetary Fund.
11. WTO- World Trade Organization.
12. IDBI 1 Industrial Development Bank of India.
13. HDFC - Housing Development Finance Corporation Limited.
14. RBI Reserve Bank of India…
15. ATM - Automated Teller Machine.
16. IDA International Development Association.
17. PACs - Primary Agricultural Credit Societies.
18. NBFC - National Non-Banking Financial Corporations.
19. UNCTAD - United Nations Conference on Trade & Development.
20. GATT - General Agreement on Tariffs and Trade.
21. CCR - Counterparty Credit Risk/Cash Conversion Ratio,
22. OECD - Organisation for Economic Co-operation and Development.
23. KRB Regional Rural Bank/Railway Recruitment Board
24. IRCTC - Indian Railway Catering and Tourism Corporation.
25. QTM- Quantity Theory of Money
26. ; SSC- State selection Commission/School Service Commission.
27. SIDC - States Industrial Development Corporation
28. . SLR- Statutory Liquidity Ratio
29. SLBD State Land Development Bank (India)
30. SFC - State Financial Corporation/Securities and Futures Commission.
31. IND - International Development Association.
32. CAS - Confirmation of Acceptance for Studies.
33. CCB - Configuration Control Board.
34. SIDBT - Small Industries Development Bank of India.
35. DGBA - The Department of Government and Bank Account.
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1.What Is the International Finance Corporation (IFC)?

The International Finance Corporation (IFC) provides financing of private-enterprise

investment in developing countries around the world, through both loans and direct
investments. Affiliated with the World Bank, it also provides advisory services to encourage
the development of private enterprise in nations that might be lacking the necessary
infrastructure or liquidity for businesses to secure financing.

How the International Finance Corporation (IFC) Works

The IFC was established in 1956 as a member of the World Bank Group, focused on
investing in economic development. It claims to be the largest global development institution
focused on the private sector in developing countries. The IFC says it also seeks to ensure
that private enterprises in developing nations have access to markets and financing.

The IFC's most recent stated goals include the development of sustainable agriculture,
expanding small businesses' access to microfinance, supporting infrastructure
improvements, as well as promoting climate, health, and education policies. The IFC is
governed by its 184 member countries and is headquartered in Washington, D.C

2. IDBI What is the full form of IDBI?

The full form of IDBI is the Industrial Development Bank of India. IDBI was founded in 1964
as a wholly-owned subsidiary of RBI to provide financial and credit facilities for growth in the
Indian industry. Its headquarters is in Mumbai. Currently, it is one of India’s most prominent
commercial banks offering financial strategies and personal banking.

History of IDBI
IDBI group was founded in 1964 as a wholly-owned subsidiary of RBI under the Parliament
Act.
Since 1992, IDBI has offered Indirect Financial Assistance via the State Level Financial
Foundation and Loan Refinancing to enhance the financial sector of the government.
Objective of IDBI
The main objective of IDBI is to establish a significant long-term financing institution.
The collaboration with institutions operating in the banking sector for the expected growth of
the industrial sector. The provision of administrative & technical support to the industries and
the conduct of research & development ( R&D) for the benefit of the Industrial Segment of
India.

IDBI Products
Various products are offered by IDBI, and a few are listed below.
Saving accounts
Debit and credit cards
Lockers and FD
Loans
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Agricultural loans, etc.

3 International Monetary Fund (IMF)

The formation of the IMF was initiated in 1944 at the Bretton Woods Conference. IMF came
into operation on 27th December 1945 and is today an international organization that
consists of 189 member countries. Headquartered in Washington, D.C., IMF focuses on
fostering global monetary cooperation, securing financial stability, facilitating and promoting
international trade, employment, and economic growth around the world. The IMF is a
specialised agency of the United Nations.

Formation of IMF

The breakdown of international monetary cooperation during the Great Depression led to the
development of the IMF, which aimed at improving economic growth and reducing poverty
around the world. The International Monetary Fund (IMF) was initially formed at the Bretton
Woods Conference in 1944. 45 government representatives were present at the Conference
to discuss a framework for postwar international economic cooperation.

The IMF became operational on 27th December 1945 with 29 member countries that agreed
to bound to this treaty. It began its financial operations on 1st March 1947. Currently, the IMF
consists of 189 member countries.

The IMF is regarded as a key organisation in the international economic system which
focuses on rebuilding the international capital along with maximizing the national economic
sovereignty and human welfare.

The United Nations is the parent organization that handles the proper functioning and
administration of the IMF. The IMF is headed by a Managing Director who is elected by the
Executive Board for a 5-year term of office. The International Monetary Fund (IMF) consists
of the Board of Governors, Ministerial Committees, and the Executive Board.

Objectives of the IMF

IMF was developed as an initiative to promote international monetary cooperation, enable

international trade, achieve financial stability, stimulate high employment, diminish poverty in
the world, and sustain economic growth. Initially, there were 29 countries with a goal of
redoing the global payment system. Today, the organization has 189 members. The main
objectives of the International Monetary Fund (IMF) are mentioned below:

To improve and promote global monetary cooperation of the world.

To secure financial stability by eliminating or minimizing the exchange rate stability.
To facilitate a balanced international trade.
To promote high employment through economic assistance and sustainable economic
growth.
To reduce poverty around the world.
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What are the functions of the IMF?

IMF mainly focuses on supervising the international monetary system along with providing
credits to the member countries. The functions of the International Monetary Fund can be
categorised into three types:

Regulatory functions: IMF functions as a regulatory body and as per the rules of the Articles
of Agreement, it also focuses on administering a code of conduct for exchange rate policies
and restrictions on payments for current account transactions.

Financial functions: IMF provides financial support and resources to the member countries to
meet short term and medium term Balance of Payments (BOP) disequilibrium.

Consultative fun­ctions: IMF is a centre for international cooperation for the member
countries. It also acts as a source of counsel and technical assistance.

4 . International Development Association (IDA)

The International Development Association (IDA) is a part of the World Bank Group that
helps the world’s poorest countries.

The main objective of the IDA is to provide grants and concessional loans to the world’s
poorest countries.
It lends to developing countries with the lowest Gross National Income (GNI), having
troubled creditworthiness, & having very low per capita income.
The IDA seeks to complement the work done by the International Bank for Reconstruction
and Development.
Collectively IBRD and IDA are known as the World Bank.

Some of the important information regarding IDA are mentioned below.

● IDA was established with the signing of agreements between 15 countries.

● 173 countries are its members.
● Around 52 nations are donor countries.
● IDA lends to 75 countries, out of which 39 countries are located in Africa.
● IDA replenishes its resources every 3 years.
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5. Provision Under WTO ?

World Trade Organization (WTO), international organization established to supervise and
liberalize world trade. The WTO is the successor to the General Agreement on Tariffs and
Trade (GATT), which was created in 1947 in the expectation that it would soon be replaced
by a specialized agency of the United Nations (UN) to be called the International Trade
Organization (ITO). Although the ITO never materialized, the GATT proved remarkably
successful in liberalizing world trade over the next five decades. By the late 1980s there
were calls for a stronger multilateral organization to monitor trade and resolve trade
disputes. Following the completion of the Uruguay Round (1986–94) of multilateral trade
negotiations, the WTO began operations on January 1, 1995.
The WTO provides a forum for negotiating agreements aimed at reducing obstacles to
international trade and ensuring a level playing field for all, thus contributing to economic
growth and development. The WTO also provides a legal and institutional framework for the
implementation and monitoring of these agreements, as well as for settling disputes arising
from their interpretation and application.

6. General Agreement on Tariffs and Trade (GATT)

General Agreement on Tariffs and Trade (GATT), set of multilateral trade agreements aimed
at the abolition of quotas and the reduction of tariff duties among the contracting nations.
When GATT was concluded by 23 countries at Geneva, in 1947 (to take effect on Jan. 1,
1948), it was considered an interim arrangement pending the formation of a United Nations
agency to supersede it. When such an agency failed to emerge, GATT was amplified and
further enlarged at several succeeding negotiations. It subsequently proved to be the most
effective instrument of world trade liberalization, playing a major role in the massive
expansion of world trade in the second half of the 20th century. By the time GATT was
replaced by the World Trade Organization (WTO) in 1995, 125 nations were signatories to its
agreements, which had become a code of conduct governing 90 percent of world trade.

.GATT’s most important principle was that of trade without discrimination, in which each
member nation opened its markets equally to every other. As embodied in unconditional
most-favoured nation clauses, this meant that once a country and its largest trading partners
had agreed to reduce a tariff, that tariff cut was automatically extended to every other GATT
member. GATT included a long schedule of specific tariff concessions for each contracting
nation, representing tariff rates that each country had agreed to extend to others. Another
fundamental principle was that of protection through tariffs rather than through import quotas
or other quantitative trade restrictions; GATT systematically sought to eliminate the latter.
Other general rules included uniform customs regulations and the obligation of each
contracting nation to negotiate for tariff cuts upon the request of another. An escape clause
allowed contracting countries to alter agreements if their domestic producers suffered
excessive losses as a result of trade concessions.
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7. What is the Full form of ICICI?

The full form of ICICI is Industrial Credit and Investment Corporation of India. It was ICICI
Bank’s parent organisation which had been incorporated in 2002 with ICICI Bank. ICICI was
renamed as ICICI bank just after integration, so it is now branded as ICICI Bank. It has its
headquarters in Mumbai, Maharashtra, India and operates in 17 nations across the globe. In
2014, it was India’s second-largest investment bank and third-biggest market capitalization
bank.

History of ICICI
1. In 1955, ICICI was established. ICICI joined the financial sector in 1994 through the
establishment of ICICI Bank as its financial branch.
2. In 1998, ICICI Bank became the first bank in India to begin internet banking.
3. It was the first Indian bank to be mentioned on the New York Stock exchange in
1999.
4. ICICI purchased the Bank of Madura (2001) which was founded in 1943.
5. The backward merger parent company into ICICI Bank subsidiary was accepted in
2002 by bank directors.
6. ICICI Bank launched its branches in Canada, the UK and Singapore in 2003. It also
set up representative bank branches in Dubai & Shanghai.
7. In 2004, it established an office in Bangladesh for involving in the wide banking
industry of Bangladesh and South Africa.
8. ICICI Bank purchased a Russian subsidiary IKB (Investitsionno-Kreditny Bank), in
2005 and named it ICICI Bank Eurasia. It also set up a branch in Hong Kong & Dubai
in the same year.
9. It set up a branch in Belgium, Antwerp and representative offices in Jakarta, Bangkok
and Kuala Lumpur in 2006.
10. Sangli Bank, which has 158 subsidiaries in Maharashtra and 31 branches in
Karnataka, was established in 2007.
11. In 2008, it transformed its New York branch into a branch of ICICI Bank with the
approval of the US Federal Reserve. It opened an office in Frankfurt in the same
year.
12. It was the first private-sector bank to open a mobile branch in Maharashtra with an
ATM in 2013.
13. In March 2020, ICICI Bank Ltd.’s board approved a Rs 1,000 crore investment in Yes
Bank Ltd. This investment led to ICICI Bank Limited owning more than five per cent
of Yes Bank’s shareholding.
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8 . NABARD
National Bank for Agriculture and Rural Development (NABARD) is an apex regulatory body
for overall regulation of regional rural banks and apex cooperative banks in India. It is under
the jurisdiction of Ministry of Finance, Government of India.[4] The bank has been entrusted
with "matters concerning policy, planning, and operations in the field of credit for agriculture
and other economic activities in rural areas in India". NABARD is active in developing and
implementing financial inclusion.
NABARD was set up in 1982 as an apex body to coordinate the activities of all institutions
involved in rural credit.

The main functions of NABARD are

(i) To grant long-term loans to the State Government for subscribing to the share capital of
cooperative societies.
(ii) To take the responsibility of inspecting cooperative banks, Regional Rural Banks (RRBs)
and primary cooperative societies.
(iii) To promote research in agriculture and rural development.
(iv) To serve as a refinancing agency for the institutions providing finance to rural and
agricultural development.
(v) To help tenant farmers and small farmers to consolidate their landholdings.
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1 . Explain the function and objects IBRD ?

Introduction- The International Bank for Reconstruction and Development (IBRD), commonly
referred to as the World Bank, is an international financial institution whose purposes include
assisting the development of its member nation’s territories, promoting and supplementing
private foreign investment and promoting long-range balance growth in international trade.
The World Bank was established in December 1945 at the United Nations Monetary and
Financial Conference in Bretton Woods, New Hampshire. It opened for business in June
1946 and helped in the reconstruction of nations devastated by World War II. Since 1960s
the World Bank has shifted its focus from the advanced industrialized nations to developing
third-world countriesObjectives:
The following objectives are assigned by the World Bank:

1. To provide long-run capital to member countries for economic reconstruction and

development.

2. To induce long-run capital investment for assuring Balance of Payments (BoP) equilibrium
and balanced development of international trade.

3. To provide guarantee for loans granted to small and large units and other projects of
member countries.

4. To ensure the implementation of development projects so as to bring about a smooth

transference from a war-time to peace economy.
5. To promote capital investment in member countries by the following ways
(a) To provide guarantee on private loans or capital investment.
(b) If private capital is not available even after providing guarantee, then IBRD provides
loans for productive activities on considerate conditions.Functions:
World Bank is playing main role of providing loans for development works to member
countries, especially to underdeveloped countries. The World Bank provides long-term loans
for various development projects of 5 to 20 years duration.

The main functions can be explained with the help of the following points:
1. World Bank provides various technical services to the member countries. For this
purpose, the Bank has established “The Economic Development Institute” and a Staff
College in Washington.
2. Bank can grant loans to a member country up to 20% of its share in the paid-up capital.

3. The quantities of loans, interest rate and terms and conditions are determined by the Bank
itself.
4. Generally, Bank grants loans for a particular project duly submitted to the Bank by the
member country.
5. The debtor nation has to repay either in reserve currencies or in the currency in which the
loan was sanctioned.

6. Bank also provides loan to private investors belonging to member countries on its own
guarantee, but for this loan private investors have to seek prior permission from those
counties where this amount will be collected.
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2. IDA | Objectives | Membership | Capital Structure | Achievements

Table of Contents [show]

International Development Association (IDA) came into force in November 1969 as an

affiliate and complementary institution of the World Bank. This institution was created to
provide loans to less developed countries on more liberal terms than those applied by the
World Bank. Se, IDA is known as “Soft Loan Window” of the World Bank.
Objectives of IDA
The important objective of the International Development Association may be enumerated as
follows:

Provision of financial assistance to less developed countries on easy terms with a lower
servicing charge than the one charged by the World Bank.
Promotion of economic development, increase in productivity and consequent improvement
in the living standards in less developed regions of the world.
In the words of the articles of agreement to IDA, the aims and objectives of this institution
are to raise standards of living in the less developed areas of the world included with the
association’s membership, by promoting economic development and increasing productivity.
In particular IDA provides finance to meet their important development requirements.

The terms of loan are more flexible and bear less heavily on the balance of payments than
those of conventional loans, thereby promoting development objectives of International Bank
for Reconstruction and Development and encouraging its activitie .
Membership andOrganization of the IDA
Any member country of the World Bank can become a member of the IDA by subscribing to
the IDA at the rate of 5% of its existing World Bank share capital subscription quota. By the
end of June 1975, out of 125 member countries of the World Bank, 114 countries became
the members of IDA. Of these, 20 were developed countries and the rest were developing
countries.

The IDA has been organized similar to that of the World Bank. The management setup of
the IDA consists of Board of Governors, Executive Directors and a President, all of whom
holding similar positions in the World Bank. They serve as ex-officio members in the IDA.

By the end of June 1992, 142 countries were the members of the IDA. Out of these, 24 were
developed countries while the remaining were less developed countries. Recently, China
and some East European countries have become the members of the IDA. At present, about
179 countries are its members
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3. The WTO and its impact on India

The full form of the WTO is the World Trade Organization, and its function is to control and
maintain trade across the world. Generally, this organisation makes the rules for trading
between countries. At present, 159 countries are members of the WTO. It ensures that trade
between the nations runs smoothly and peacefully and is profitable for both countries.

As everything has advantages and disadvantages, the WTO also has good and harmful
effects on India, and we will study both.

.Effect of the WTO on India

Trading is an excellent weapon for any developing country, and one who uses it rightly wins
prosperity and wealth for their country. India, as a developing nation, does the same. India is
an agricultural country, and most of its GDP depends upon agriculture, as it exports agrarian
products across the world. Trading can play a huge role in developing any nation, if
adequately used, because it also has harmful impacts. So, let’s take a look at the good and
bad impacts of the WTO on India.

Positive impacts of the WTO on India

India is a developing country and has a vast geographical area and population. That’s why it
needs more capital to feed its citizens. India is good in agriculture, as its geographical
condition is very good for crops, so they are self-sufficient in feeding their people and
exporting edible products, but some things are imported. So, it has a perfect balance of
imports and exports, and India, as one of the founding members of the WTO, has a very
positive impact on it. There are some points listed below that helped in the development of
India through the World Trade Organization:

India’s export competitiveness has been improved by the WTO.

The lower tariff has helped integrate with the global economy more efficiently.
India’s growth and development have been pursued by transferring and exchanging
technology and ideas.
There is a reduction in cost and time due to market access.
The WTO helped better settle trade disputes in a well-defined and structured manner.

Negative impacts of the WTO on India

Every positive impact carries a negative with it. Even after so many positive things, the WTO
has also harmed India in some ways, which are listed below:

The TRIPs agreement went against the Indian Patents Act (1970).
The introduction of product patents in India by MNCs caused a hike in drug prices, which left
no generic option for the poor.
India and its research institutions have been negatively affected by the extension of
intellectual property rights to agriculture.
The MFN (most favoured nations )clause proved detrimental to India’s interests and
provided grounds for the Chinese invasion of the Indian market through dumping.
India’s service sectors are backward compared to those in developed countries.
Conclusion
The World Trade Organization is an international organisation that deals with the rules and
regulations of trading worldwide. Currently, it has a total of 159 countries, including India.
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India has been the founding member of this organisation since 1995. This organisation has
helped many countries to develop with the help of trade. It also helped India and still does
toward making it a developed country. Trading has a significant impact on any nation’s
economy, and it is a part of globalisation. It also has negative impacts, but they are
overshadowed by the positive impacts. So, for India, the WTO seems like a life-uplifting
organisation.
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4. Essay on NABARD

1. Introduction to NABARD:
One of the most important landmark in respect of rural credit in recent years is setting up of
the National Bank for Agricultural and Rural Development on 12th July, 1982. From the very
beginning, Reserve Bank of India (RBI) was extending agricultural credit through state level
Co-operative Banks and Land Development Banks.

Lateron, the Agricultural Refinance Development Corporation (ARDC) was set up by RBI in
1963 for meeting the long-term credit requirements of rural areas. But after the formation of
NABARD, it took over all agricultural credit functions of RBI and the refinance functions of
ARDC after its merger with NABARD.

NABARD has an authorised share capital of Rs. 500 crore and paid-up capital of Rs. 100
crore which is contributed equally by the RBI and the Government. RBI nominates three of
its Central Board Directors as member of the board of NABARD and a Deputy Governor of
RBI is appointed as a chairman of NABARD
2. Functions of NABARD:
The following are some of the important functions performed by NABARD:

1. The National Bank is working as an apex body for meeting the credit requirements of the
rural sector in the form of production and investment credit to agricultural, small scale and
village industries, rural crafts, artisans and other allied economic activities.

2. The Bank provides short-term, medium-term and long-term credit to state co-operative
banks, RRBs, land development banks and commercial banks for investment in agricultural
and other allied sectors.

3. The Bank gives long-term assistance to State Governments (up to 20 years) for
subscribing to the share capital of co-operative credit institutions.

4. The Bank has the responsibility of inspecting State Co-operative Banks and RRBs.

5. It provides long-term loans to the institutions which are approved by the Central
Government or may contribute to the share capital or invest in securities of any type of
institution connected with agriculture and rural development.

6. The Bank is also coordinating the activities of central and state governments, the Planning
Commission and all other All-India and State level institutions which are entrusted with the
development of small scale, village and cottage industries, rural crafts and other industries in
the tiny and unorganised sector.

7. The Bank also maintains a Research and Development Fund in order to promote research
in agriculture and rural development, and also to formulate and design projects and
programmes to suit the requirements of different areas.
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5. Working of NABARD:

NABARD is playing an important role in augmenting the flow of credit for the promotion of
agriculture, small scale, village and cottage industries, handicrafts, other rural crafts and
various other allied activities in rural areas of the country.

NABARD does not help the farmers and other rural people directly, rather it flows the credit
to these people through co-operative banks, commercial banks, RRBs, etc. It is thus working
as an apex body dealing with policy, planning and other operational aspects of rural credit for
the around development of rural economy.

There have, however, been inter­state variations in this regard. In some states, the utilisation
has been poor mainly due to inadequacy of own funds to supplement the provisions under
RIDF. In other cases, there have been a wide range of factors which contributed to the
relatively poor utilisation of funds.

In order to enable the states to enhance utilisation, the Union Budget for 1999-2000 has
widened the scope of RIDF so as to include lending towards Gram Panchayats, Self Help
Groups and other eligible institutions for implementing rural infrastructure projects.

Thus, the successive Union Budgets have enhanced allocations to the RIDF corpus and
extended the scope of the Fund. The Union Budget for 2001-02 announced the setting up of
RIDF-VII with a corpus of Rs. 5,000 crore. At the end of November 2001, the total corpus of
RIDF under tranches I to VII amounted to Rs. 23,000 crore. The contribution to RIDF is
received by NABARD from Indian scheduled commercial banks against their shortfall in
priority sector/agricultural lending during the preceding year.

Total sanctions and disbursements under various tranches of RIDF amounted to Rs. 20,344
crore and Rs. 10,409 crore respectively as on November 30, 2001. Again in February 2002,
NABARD has sanctioned Rs. 713.94 crore in loans under RIDF- VII for creation of
infrastructure in 12 states.

In the subsequent budgets, the allocation on RIDF was enhanced. In 2008-09 budget, the
allocation on RIDF-XIV was enhanced by 14 per cent, i.e., to Rs. 14,000 crore with a
separate window for the construction of rural roads with a corpus of Rs. 4,000 crores.
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6. United Nations Conference on Trade and Development (UNCTAD)

Established in 1964 as a permanent intergovernmental body United Nations Conference on

Trade and Development (UNCTAD) is the main authority of the General Assembly in the
sphere of trade and development. Its purpose is promotion of trade and development,
particularly in developing countries.

The main goals of UNCTAD are to expand the capabilities of developing countries in the
sphere of trade, investment and development, to assist them in overcoming the difficulties
arisen as a result of globalization and to integrate on an equal footing into the world
economy. UNCTAD achieves these goals by conducting researches and policy analyses,
intergovernmental debates, with the help of technical cooperation, cooperation with civil
society and business world.

The objectives of UNCTAD in the sphere of competition are analysis and improvement of the
international bases of the introduction of competition policy and law, harmonization of
competition and trade policy, convergence of the national norms of competition with the Set
of multilaterally agreed equitable principles and rules relating to the Control of Restrictive
Business Practices adopted by the UN Conference.

Participation of the Republic of Belarus in the work of UNCTAD divisions that deal with the
development of competition has great significance as without strengthening the role of
competition policy as a means of regulating economic relations not only within the countries
but also at the international level is not possible to increase economic efficiency, successful
development of international trade and to improve economic welfare of consumers of goods
and services.Functions:

The essential purpose of instituting UNCTAD was to promote accelerated development of

the less developed regions of the world by dealing properly with the problem of slow
expansion of exports, persistently increasing BOP deficits, burden of external debts etc.
confronting the LDC’s.

The main functions of the UNCTAD are as follows:

(i) To promote international trade between the developed and under-developed countries
having diverse socio-economic organisations with special emphasis upon the accelerated
development of the under-developed countries.

(ii) To formulate the principles and policies concerning international trade and related
problems of economic development.
(iii) To make proposals for putting the said principles and policies into effect and to adopt
measures that may be relevant to this end .

(iv) To generally review and facilitate the co­ordination of activities of other institutions within
the fold of the United Nations related to international trade and economic development.

(v) To be available as a centre for harmonious trade-related policies of governments and the
regional economic groupings in pursuance of Article 7 of the Charter of the United Nations.