Development Banks in India
Development banks are financial institutions that provide medium and long-term funds for capital-intensive industries. They play a crucial role in promoting economic growth and development in India.
Number of Development Banks in India
There are nine regulated development banks in India:
Key Facts
- Development Banks in India: The regulated development banks in India include IFCI Ltd., IDFC Ltd., NABARD, SIDBI, IDBI, TFCI Ltd., and EXIM Bank, NHB, IIBI Ltd.
- Small Industries Development Bank of India (SIDBI): SIDBI was established in 1990 and is headquartered in Lucknow. It focuses on technical upgradation, marketing, employment generation, and migration control in the small-scale industry sector.
- National Bank for Agriculture & Rural Development (NABARD): NABARD is the prime development bank in India. It was established in 1982 and is headquartered in Mumbai. NABARD focuses on promoting agriculture, rural development, and providing financial assistance to the rural economy.
- Export-Import Bank of India (EXIM Bank): EXIM Bank was established in 1982 and is a public sector financial institution. It aims to finance Indian exports, provide term loans for foreign trade, and promote foreign trade in India.
- National Housing Bank (NHB): NHB was established in 1988 and is headquartered in New Delhi. It regulates and refinances social housing activities and promotes inclusive expansion in the housing finance sector.
- Industrial Finance Corporation of India (IFCI): IFCI was established in 1948 and provides long and medium-term financial offerings to large-scale businesses. It focuses on setting up new industrial undertakings, expansion, renovation, and meeting working capital needs of industries.
- Industrial Development Bank of India (IDBI): IDBI was established in 1964 and was converted into a universal bank by the Government of India. It provides credit for major financial facilities to assist with the industrial development of India.
- IFCI Ltd.
- IDFC Ltd.
- NABARD
- SIDBI
- IDBI
- TFCI Ltd.
- EXIM Bank
- NHB
- IIBI Ltd.
Types of Development Banks in India
There are various types of development banks in India, each with a specific focus:
Small Industries Development Bank of India (SIDBI)
- Established in 1990
- Headquarters: Lucknow
- Focuses on technical upgradation, marketing, employment generation, and migration control in the small-scale industry sector
National Bank for Agriculture & Rural Development (NABARD)
- Prime development bank in India
- Established in 1982
- Headquarters: Mumbai
- Focuses on promoting agriculture, rural development, and providing financial assistance to the rural economy
Export-Import Bank of India (EXIM Bank)
- Public sector financial institution
- Established in 1982
- Aims to finance Indian exports, provide term loans for foreign trade, and promote foreign trade in India
National Housing Bank (NHB)
- Established in 1988
- Headquarters: New Delhi
- Regulates and refinances social housing activities and promotes inclusive expansion in the housing finance sector
Industrial Finance Corporation of India (IFCI)
- Established in 1948
- Provides long and medium-term financial offerings to large-scale businesses
- Focuses on setting up new industrial undertakings, expansion, renovation, and meeting working capital needs of industries
Industrial Development Bank of India (IDBI)
- Established in 1964
- Converted into a universal bank by the Government of India
- Provides credit for major financial facilities to assist with the industrial development of India
Sources
- https://unacademy.com/content/bank-exam/study-material/general-awareness/all-india-development-finance-institutions/
- https://testbook.com/banking-awareness/development-banks-in-india
- https://en.wikipedia.org/wiki/All_India_Financial_Institutions
FAQs
How many development banks are there in India?
There are nine regulated development banks in India.
What is the role of development banks in India?
Development banks play a crucial role in promoting economic growth and development in India by providing medium and long-term funds for capital-intensive industries.
What are the different types of development banks in India?
There are various types of development banks in India, each with a specific focus, such as small industries, agriculture, rural development, exports, housing, and industrial development.
What is the oldest development bank in India?
The Industrial Finance Corporation of India (IFCI) is the oldest development bank in India, established in 1948.
What is the largest development bank in India?
The Industrial Development Bank of India (IDBI) is the largest development bank in India.
What is the role of SIDBI in India?
SIDBI focuses on providing financial assistance to the small-scale industry sector in India.
What is the role of NABARD in India?
NABARD is responsible for promoting agriculture, rural development, and providing financial assistance to the rural economy in India.
What is the role of EXIM Bank in India?
EXIM Bank aims to finance Indian exports, provide term loans for foreign trade, and promote foreign trade in India.