FINANCIAL INSTITUTION

PRESENTED BY : VIVEKANANDAN FROM : TYBAFBANKING & FINANCE BATCH -1

MEANING OF FINANCIAL INSTITUTIONIn finance and economics, a financial institution is an institution that provides financial services for its clients or members. One of the most important financial services provided by a financial institution is acting as a financial intermediary. Most financial institutions are regulated by the government.

FINANCIAL INSTITUTION EXPLAINED

FINANCIAL INSTITUTION

OTHERSNON-

INTERMEDIARY

INTERMEDIARY

NON-BANKINGBANKING

REGULATARY

FINANCIAL REGULATARY IN INDIARESERVE BANK OF INDIA (RBI)

SECURITY EXCHANGE BOARD OF INDIA (SEBI)

CENTRAL BOARD OF DIRECT TAX (CBDT)

CENTRAL BOARD OF EXCISE & CUSTOMS

CLASSIFICATION OF INTERMEDIARIES Unit Trust of India (UTI) – Mutual funds financing Securities Trading Corporation of India Ltd. (STCI) Industrial Development Bank of India (IDBI) – help to form new

industry Industrial Reconstruction Bank of India (IRBI) Export - Import Bank of India (EXIM Bank) – help small & medium

entp. Small Industries Development Bank of India (SIDBI) National Bank for Agriculture and Rural Development (NABARD) Life Insurance Corporation of India (LIC) General Insurance Corporation of India (GIC) National Housing Bank (NHB)

BANKING & NON-BANKING

Banking institutions A bank is an institution that accepts deposits of money from the public, which are repayable on demand and withdraw able by cheques. The banking institutions of India play a major role in the economy of the country.

Example : State bank of india , Indian bank , cananra bank, syndicate bank , Icici bank & HDFC bank

which all are regulated by RESERVE BANK OF INDIA (RBI)

NON-BANKING INSTITUTION

Which is also know as NBFC – Non banking finance company A Non Banking Financial Company (NBFC) is a company

registered under the Companies Act, 1956 of India, engaged in the business of loans and advances, acquisition of shares, stock, bonds hire-purchase, insurance business or chit business

The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India and the directions issued by it.

Example : Power Finance Corporation, Shriram Transport Finance , Muthoot Finance , IFCI-Industrial Finance Corporation of India.

MUTUAL FUNDS INSTITUTION

The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched Unit Trust of India (UTI).

UTI enjoyed a monopoly in the Indian mutual fund market until 1987, when a host of other government-controlled Indian financial companies established their own funds, including State Bank of India, Canara Bank, and Punjab National Bank.

This market was made open to private players in 1993

THE TOP FIVE MUTUAL FUND HOUSES

RECENT CHANGES & NEWS

SEBI plans to set-up chair at NISM, other institutions

Markets regulator Sebi is considering setting up of 'Chair' at National Institute of Securities Markets (NISM) and other institutions, which will help in increasing awareness among investors.

‘Sebi Chair' would provide research based policy inputs and help in increasing academic interest and awareness about the activities of the regulator. The Chair would undertake activities of publishing research papers, policy notes, concept notes as well as deliver lectures seminars.

ICICI Bank becomes first financial institution in India to sign MoU with BRICS bank NDB

Private sector lender ICICI Bank on Thursday became the first financial institution in the country to tie up with the BRICS Grouping-promoted (New Development Bank) (NDB) for a partnership in bond issuances, co-financing, treasury management and human resources.

The agreement "creates a platform for sharing knowledge and deepening network connectivity between NDB and ICICI Bank," Kamath said, after signing the MoU along with ICICI Bank chief Chanda Kochhar.

RBI, Punjab to adopt coordinated approach in weeding out fake financial institutions

The State Government is taking stringent measures to check fake financial companies and economic offences cannot go unpunished. Understanding the severity of financial frauds, the State Government has already launched a massive campaign to weed out fraudulent financial companies from the State

RBI regional director Nirmal Chand said that RBI was taking cognizance of the reported instances of cheating and frauds on the part of fake finance institutions, unauthorised and high interest charging money lenders not adhering to the guidelines of the RBI.