Economics - Sources of Institutional Finance in India

7/25/2019 Economics - Sources of Institutional Finance in India

1/22

Dr. Ram Manohar Lohiya National Law University

ECONOMICS

FINAL DRAFT 2014

TOPIC: - SOURCES OF INSTITUTIONAL

FINANCE IN INDIA AND THEIR ROLE IN

ECONOMIC DEVELOPMENT

Submitted to: - Submitted By: -

Dr. Mitali Tiwari Lakshya Dheer

ssistant !ro"essor #$%onomi%s& Roll No. '() ** Semester

RMLNLU) Lu%know RMLNLU) Lu%know

Lakshya Dheer (Roll No. 72) ECONOMICS 1


2/22


TABLE OF CONTENTS

Table of Contents

TBL$ +, +NT$NTS.................................................................................................................(

N+/L$D0$M$NT...............................................................................................................1

*NTR+DUT*+N...........................................................................................................................2

NT*+NL L$3$L ND STT$ L$3$L ,*NN*L *NST*TUT*+NS.................................4

5. NT*+NL L$3$L ,*NN*L *NST*TUT*+NS..........................................................4

(. STT$ L$3$L ,*NN*L *NST*TUT*+NS................................................................56

*ND*N ,*NN*L *NST*TUT*+NS *N D$T*L..................................................................52

R+L$ +, ,*NN*L *NST*TUT*+NS *N $+N+M* D$3$L+!M$NT..........................5'

B*BL*+0R!78..........................................................................................................................((

Lakshya Dheer (Roll No. 72) ECONOMICS 2


3/22


ACKNOWLEDGEMENT

* would like to take this o99ortunity to thank Dr. Mitali Tiwari ssistant

!ro"essor #$%onomi%s&;) "or


4/22


INTRODUCTION

,inan%ial se%tor 9lays an indis9ensable role in the overall develo9ment o" a %ountry. The most

im9ortant %onstituent o" this se%tor is the "inan%ial institutions) whi%h a%t as a %onduit "or the

trans"er o" resour%es "rom net savers to net borrowers) that is) "rom those who s9end less than

their earnin%han


5/22


an institution whi%h 9rovides "inan%ial servi%es "or its %lients or members. Most "inan%ial

institutions are reim Bank&o National Bank "or


6/22


NATIONAL LEVEL AND STATE LEVEL FINANCIAL

INSTITUTIONS

1. NATIONAL LEVEL FINANCIAL INSTITUTIONS2

wide variety o" "inan%ial institutions have been set u9 at the national level. They %ater to the

diverse "inan%ial re?uirements o" the entre9reneurs. They in%lude all *ndia develo9ment banks

like *DB*) S*DB*) *,* Ltd) **B*C s9e%ialised "inan%ial institutions like *3,) *** 3enture

,unds Ltd) T,*C investment institutions like L*) 0*) UT*C et%.

A) All-I!ia D"#"l$%&"t Ba'( AIDB()*- *n%ludes those develo9ment banks whi%h

9rovide institutional %redit to not only lar


7/22


industrial %on%erns) et%. *t has also diversi"ied its a%tivities in the "ield o"

mer%hant bankin


8/22


under KTe%hnolo9erien%e in investin< in

te%hnolo


9/22


Mauritius and United in


10/22


investment and industrial develo9ment in the res9e%tive States. They broadly %onsist o" IState

"inan%ial %or9orationsJ and IState industrial develo9ment %or9orationsJ.

A) Stat" Fiaial C$r%$rati$( SFC() *-are the State-level "inan%ial institutions whi%h

9lay a %ru%ial role in the develo9ment o" small and medium enter9rises in the %on%erned

States. They 9rovide "inan%ial assistan%e in the "orm o" term loans) dire%t subs%ri9tion to

e?uityAdebentures) %han


11/22


56. The $%onomi% Develo9ment or9oration o" 0oa # $D&55. 7aryana ,inan%ial or9oration # 7, &

5(. ammu H ashmir State ,inan%ial or9oration # S,&

51. arnataka State ,inan%ial or9oration #S,&

52. erala ,inan%ial or9oration # , &

5. Maharashtra State ,inan%ial or9oration #MS, &

54. +disha State ,inan%ial or9oration #+S,&

5'. !un=ab ,inan%ial or9oration #!,&

5F. /est Ben


12/22


(. ndaman H Ni%obar *slands *nte


13/22


5'. +mnibus *ndustrial Develo9ment or9oration #+*D&) Daman H Diu and Dadra H

Na


14/22


INDIAN FINANCIAL INSTITUTIONS IN DETAIL

A) R"("r#" Ba' $, I!ia RBI)

RB* is the %entral bank o" *ndia) whi%h was established in 5st 9ril 5E1 a%%ordan%e with the

9rovisions o" the Reserve Bank o" *ndia %t) 5E12. ll o" us know that it issues %urren%y notes.

9art "rom this) it a%ts as the ream&

and SB* %omes under this %ate


15/22


The main aim o" redit Ratin< %han


16/22


o S&all I!+(tri"( D"#"l$%&"t Ba' $, I!ia**t is an inde9endent "inan%ial institution

aimed to aid the


17/22


ROLE OF FINANCIAL INSTITUTIONS IN ECONOMIC

DEVELO0MENT

,inan%ial intermediaries 9er"orm an im9ortant role in the develo9ment 9ro%ess) 9arti%ularly

throu


18/22


/ith e>isten%e o" more institutions there will be motivation in the "inan%ial se%tor to 9er"orm

better and take ste9s "or the strentensive results "or the betterment o"


19/22


"or the 9rodu%tion o" thermo bonded "ootballs is 9ossible with the hel9 o" banks in Sialkot. +ther

su99ort was observed in rural industriali@ation) human resour%e develo9ment) te%hnoloistin< units. Rural

se%tor in a %ountry like !akistan) *ndia %an


20/22


?- A#ailailit3 $, Fiaial ("r#i"( t$ /$+("/$l!( 9 i!i#i!+al(

*ndividuals have a ma=or im9a%t on the environment throu


21/22


will %ontinue as demand "or more varied "inan%ial servi%es in%reases and as im9roved leistin< se%urities e.


22/22


BIBLIOGRA08

The "ollowin< are the resour%es that * have used in makin< this !ro=e%t:-

htt9:AA

Documents

Economics - Sources of Institutional Finance in India