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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 #$%onomi%s& Roll No. '() ** Semester
RMLNLU) Lu%know RMLNLU) Lu%know
Lakshya Dheer (Roll No. 72) ECONOMICS 1
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TABLE OF CONTENTS
Table of Contents
TBL$ +, +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$NT..........................5'
B*BL*+0R!78..........................................................................................................................((
Lakshya Dheer (Roll No. 72) ECONOMICS 2
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ACKNOWLEDGEMENT
* would like to take this o99ortunity to thank Dr. Mitali Tiwari ssistant
!ro"essor #$%onomi%s&;) "or
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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
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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
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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$%&"t Ba'( AIDB()*- *n%ludes those develo9ment banks whi%h
9rovide institutional %redit to not only lar
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industrial %on%erns) et%. *t has also diversi"ied its a%tivities in the "ield o"
mer%hant bankin
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under KTe%hnolo9erien%e in investin< in
te%hnolo
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Mauritius and United in
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investment and industrial develo9ment in the res9e%tive States. They broadly %onsist o" IState
"inan%ial %or9orationsJ and IState industrial develo9ment %or9orationsJ.
A) Stat" Fiaial C$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
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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
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(. ndaman H Ni%obar *slands *nte
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5'. +mnibus *ndustrial Develo9ment or9oration #+*D&) Daman H Diu and Dadra H
Na
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INDIAN FINANCIAL INSTITUTIONS IN DETAIL
A) R"("r#" Ba' $, I!ia RBI)
RB* is the %entral bank o" *ndia) whi%h was established in 5st 9ril 5E1 a%%ordan%e with the
9rovisions o" the Reserve Bank o" *ndia %t) 5E12. ll o" us know that it issues %urren%y notes.
9art "rom this) it a%ts as the ream&
and SB* %omes under this %ate
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The main aim o" redit Ratin< %han
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o S&all I!+(tri"( D"#"l$%&"t Ba' $, I!ia**t is an inde9endent "inan%ial institution
aimed to aid the
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ROLE OF FINANCIAL INSTITUTIONS IN ECONOMIC
DEVELO0MENT
,inan%ial intermediaries 9er"orm an im9ortant role in the develo9ment 9ro%ess) 9arti%ularly
throu
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/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"
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"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
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?- A#ailailit3 $, Fiaial ("r#i"( t$ /$+("/$l!( 9 i!i#i!+al(
*ndividuals have a ma=or im9a%t on the environment throu
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will %ontinue as demand "or more varied "inan%ial servi%es in%reases and as im9roved leistin< se%urities e.
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BIBLIOGRA08
The "ollowin< are the resour%es that * have used in makin< this !ro=e%t:-
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