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Economy 5: Financial Institutions

Financial Institutions
Key development and refinancing institutions in India.

NABARD

Re-finance agency

Full Name: National Bank for Agriculture and Rural Development

Suggested by: Shivaraman Committee

Established: 1982

Purpose: Provide loans for Rural and Agricultural development.

Ownership History:
  • Initial Capital (₹100 Cr): 73% RBI, 27% GoI
  • After 2017: 0.4% RBI & 99.6% GoI
  • After 2023: Fully owned by GoI

HQ: Mumbai, Maharashtra

Chairman: Shahji K.V.

EXIM

Full Name: Export Import Bank of India

Established: 1982 by IDBI (Industrial Development Bank of India)

Purpose: Provide technical assistance and promote export-import business.

HQ: Mumbai

Chairman: Harsha Bangari

NHB

Full Name: National Housing Bank

Established: 1988

Suggested by: Rangarajan committee

Purpose: Works for the development of the housing sector of the economy.

HQ: Delhi

Chairman: Sanjay Shukla

SIDBI

Full Name: Small Industrial Development Bank of India

Established: 1990 by IDBI

Autonomy: Gained autonomy in 1998, delinked from IDBI in 2000.

Purpose: Provide loans to MSMEs (Micro, Small, and Medium Enterprises).

HQ: Lucknow, UP

Chairman: Manoj Mittal

NaBFID

Full Name: National Bank for Financing Infrastructure and Development

Presented in: Union Budget of 2021

Purpose: Provide long-term loans for infrastructure development.

HQ: Mumbai, Maharashtra

Chairman: K.V. Kamath