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List of Major Financial Institutions in India
List of Financial Institutions in India: In India, there are numerous financial institutions established to absorb the savings of households. The government channels these small savings into the economy through these institutions. These major and minor financial institutions are like blood in the human body and play a vital role in the economy. Examples of these financial institutions include RBI, SEBI, IDBI, EXIM Bank, and Export Credit Guarantee Corporation of India (ECGC).
The household sector contributes a significant amount of savings to the economy. Financial institutions mobilize these savings and provide various services such as deposit-taking, lending, and investing. The Reserve Bank of India (RBI) is the central bank of India and manages the monetary policy of the country. The Securities and Exchange Board of India (SEBI) is the regulatory body that oversees the securities market in India.
The Industrial Development Bank of India (IDBI) is a development financial institution that provides long-term loans to various industries. The Export-Import Bank of India (EXIM Bank) is a specialized financial institution that provides financial assistance to exporters and importers. The Export Credit Guarantee Corporation of India (ECGC) provides export credit insurance services to protect exporters from various risks.
In summary, financial institutions in India play a crucial role in mobilizing household savings and channeling them into the economy. These institutions provide various financial services and products that are essential for the functioning of the economy. Examples of these institutions include RBI, SEBI, IDBI, EXIM Bank, and ECGC.
List of Financial Institutions in India
Establishment Years of Major Financial Institutions in India
|Financial Institutions||Establishment Years|
|Imperial Bank of India||1921|
|Reserve Bank of India (RBI)||April 1, 1935|
|Industrial Finance Corporation of India (IFCI)||1948|
|State Bank of India||July 1, 1955|
|Industrial Credit and Investment Corporation India Ltd.(ICICI)||1955|
|Life insurance corporation of India (LIC)||Sept.1956|
|Export Credit Guarantee Corporation of India (ECGC)||30 July 1957|
|Industrial Development Bank of India (IDBI)||July,1964|
|General Insurance Corporation (GIC)||Nov.1972|
|Regional Rural Banks||Oct. 2, 1975|
|Housing development and finance Corporation Ltd (HDFC)||1977|
|EXIM Bank||January 1, 1982|
|IRBI( now it is called IIBIL since march 1997)||March 20,1985|
|Board for Industrial and Financial Reconstruction||1987|
|Securities and Exchange Board of India (SEBI)||April 12, 1988|
|National Housing Bank||July 1988|
|Small Industries Development Bank of India (SIDBI)||1990|
|Bharatiya Reserve Bank Note Mudran Private Limited||1995|
|Rural Infrastructure and Development Fund (RIDF)||April 1, 1995|
|Infrastructure Development Finance Company (IDFC)||Jan.31, 1997|
|Unit Trust of India||Feb.1, 2003|
|Bifurcation of UTI (UTI-i & UTI-ii)||Feb. 2003|
|Indian Infrastructure Finance Company (IIFCL)||April, 2006|
|National Payments Corporation of India||Dec.2008|
Financial Institutions in India
Here’s a list of some of the major financial institutions in India, along with a brief description of what they do:
- Reserve Bank of India (RBI): The RBI is India’s central bank, responsible for regulating the country’s monetary policy, managing foreign exchange reserves, and supervising the banking system.
- State Bank of India (SBI): SBI is India’s largest bank and offers a wide range of banking services to individuals and businesses, including savings and current accounts, loans, and investment products.
- National Bank for Agriculture and Rural Development (NABARD): NABARD is a development bank focused on promoting rural development in India by providing credit and other financial services to farmers, rural entrepreneurs, and other rural clients.
- Industrial Development Bank of India (IDBI): IDBI is a development finance institution that provides financial assistance and support to businesses engaged in manufacturing, infrastructure, and other priority sectors of the economy.
- Life Insurance Corporation of India (LIC): LIC is a state-owned insurance company that provides life insurance and investment products to individuals and groups.
- Securities and Exchange Board of India (SEBI): SEBI is the regulator of the securities market in India and oversees the functioning of stock exchanges, brokers, and other market intermediaries.
- Housing Development Finance Corporation (HDFC): HDFC is a leading provider of housing finance in India and offers a range of products and services, including home loans, insurance, and investment options.
- Export-Import Bank of India (EXIM Bank): EXIM Bank is India’s premier export finance institution, providing financial assistance and support to exporters and importers in the country.
- Small Industries Development Bank of India (SIDBI): SIDBI is a development bank focused on promoting small and medium-sized enterprises (SMEs) in India by providing financial and other support services to these businesses.
- National Stock Exchange of India (NSE): NSE is India’s largest stock exchange and provides a platform for trading in equities, derivatives, and other financial instruments.
TYPES OF FINANCIAL INSTITUTIONS
There are several types of financial institutions, each with its unique functions, purposes, and services. Here are some of the major types of financial institutions:
- Banks: Banks are financial institutions that accept deposits, lend money, and provide a range of financial services to individuals, businesses, and governments.
- Credit Unions: Credit Unions are financial cooperatives that are owned and operated by their members. They offer similar services as banks, such as deposit accounts, loans, and credit cards.
- Insurance Companies: Insurance companies provide various types of insurance policies, such as life insurance, health insurance, and property insurance, to individuals and businesses.
- Investment Companies: Investment companies pool money from individual investors and invest it in a range of securities, such as stocks, bonds, and mutual funds.
- Brokerage Firms: Brokerage firms facilitate the buying and selling of securities and other financial assets for their clients.
- Pension Funds: Pension funds are organizations that manage retirement funds for individuals and invest the funds in a range of assets to generate returns.
- Hedge Funds: Hedge funds are investment funds that typically use more complex investment strategies than mutual funds, such as leverage, short selling, and derivatives, to generate higher returns.
- Private Equity Firms: Private equity firms raise capital from investors to buy and restructure companies with the aim of improving their performance and profitability.
- Venture Capital Firms: Venture capital firms provide funding and support to start-up companies with high growth potential in exchange for equity ownership.
- Microfinance Institutions: Microfinance institutions provide financial services, such as small loans, to low-income individuals and businesses that do not have access to traditional banking services.
SAMPLE QUESTIONS ON FINANCIAL INSTITUTIONS IN INDIA
Q. Which of the following is the central bank of India?
Answer: b) RBI
Q. Which financial institution provides long-term loans to industries in India?
d) EXIM Bank
Answer: c) IDBI
Q. Which financial institution provides export credit insurance services to Indian exporters?
c) EXIM Bank
Answer: d) ECGC
Q. Which of the following financial institutions is a cooperative owned and operated by its members?
b) Credit Union
d) Hedge Fund
Answer: b) Credit Union
Q. Which financial institution provides financial assistance to Indian exporters and importers?
d) EXIM Bank
Answer: d) EXIM Bank
FAQ on Financial Institutions in India
Q. What is a financial institution?
Ans: A financial institution is an organization that provides financial services and products to individuals, businesses, and governments. These services can include deposit-taking, lending, investing, insurance, and more.
Q. What are the different types of financial institutions in India?
Ans: The different types of financial institutions in India include banks, credit unions, insurance companies, investment companies, brokerage firms, pension funds, hedge funds, private equity firms, venture capital firms, and microfinance institutions.
Q. What is the role of financial institutions in the Indian economy?
Ans: Financial institutions play a crucial role in the Indian economy by mobilizing savings and channeling them into productive investments. They provide a range of financial services and products that are essential for the functioning of the economy, such as deposit-taking, lending, investing, insurance, and more.
Q. What are some examples of major financial institutions in India?
Ans: Some examples of major financial institutions in India include the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Industrial Development Bank of India (IDBI), Export-Import Bank of India (EXIM Bank), and National Stock Exchange (NSE).
Q. What are some benefits of using financial institutions?
Ans: Using financial institutions can provide several benefits, such as access to a range of financial services and products, expert financial advice, protection against financial risks, and the potential for higher returns on investments.