FINANCIAL INSTNS -DETAILS -FOR INTERVIEW AND EXAMS -- for mock interview...
FINANCIAL INSTITUTIONS -- A FEW IMPORTANT DETAILS
RBI
(Reserve Bank of India) Established: The Reserve Bank of India Act,
1934 (II of 1934) provides the statutory basis of the functioning of the
Bank, which commenced operations on April 1, 1935. Headquarter: Mumbai, Maharashtra. Governor: Shaktikanta Das Features
of RBI: · The RBI has regularized the issue of Bank notes (currency). · The RBI is a lender of the last resort · The reserve bank is the banker’s bank. · The reserve bank is acting as a liaison between the government and
commercial banks, financial corporations, and small savings boards. · The RBI had played an important role in the development of
institutional machinery of industrial finance, agricultural credit, and
commercial banking. · The reserve bank has ensured monetary stability in the country. NABARD
( National Bank for Agriculture and Rural Development ) Established: NABARD was established on 12th
July 1982 on the recommendation of the CRAFICARD committee which is also
known as the Sivaraman Committee. · Biggest Rural Development Bank · Established on 12 July 1982 on the recommendation of Shivaraman
committee to implement NABARD act 1981 · AIM To uplift Rural India & rural
non-farm sector. · NABARD acts as the regulator for cooperative banks &RRB's
(Regional Rural Banks). Primary
Function: · NABARD is the apex organization related to financing in the
agricultural sector. · It looks after matters concerned with policy, planning, and operations
in rural areas in India. · Rural Infrastructure Development Fund (RIDF) is operated by NABARD. · Provides refinance to lending institutions in rural areas. · Helps SHG (Self Help Group) & poor people in rural areas. · Runs program for agricultural & rural development. Recommends
about licensing for RRBs, Co-operative banks to RBI SIDBI
( Small Industries Development Bank of India ) Established: Small Industries Development
Bank of India (SIDBI in short) was established on 2nd April 1990 under the
Small Industries Development Bank of India Act 1989 as a subsidiary of
Industrial Development Bank of India. Primary
Function: · SIDBI refinances loans & advances provided by the existing lending
institution to small-scale units. · SIDBI is an independent financial institution that provides help for
the growth and development of micro, small and medium-scale enterprises
(MSMEs). · The second fund is a debt fund called SIDBI make is an India loan for
enterprises (SMILE), which was announced in the Union budget (2015) in
February. The fund will provide short-term loans and loans in the nature of
quasi-equity of MSMEs to meet debt-to-equity norms and pursue growth. IRDAI
( Insurance Regulatory and Development Authority of India ) Established: IRDDAI was set up in the year
1999 by the Insurance Regulatory and Development Authority Act, 1999, which
was passed by the Government of India. · It is an autonomous apex statutory body to control & develops
insurance agencies in India. IRDA is a national agency of GOI. · Passed by the Government of India under IRDA Act 1999 on
the recommendation of Malhotra Committee. · It was incorporated as a statutory body in April 2000 · IRDA act 1999, amended in 2002 to incorporate some emerging
requirements · Objective To protect the interest of policyholders, to regulate,
promote & ensure orderly growth of the insurance industry & for
matters connected therewith or incidental thereto. Primary Function: · The IRDAI is an autonomous, statutory agency tasked with regulating
and promoting the insurance and re-insurance industries in India. EXIM
BANK ( Export-Import Bank ) Established: EXIM Bank was established on
January 1, 1982, for the purpose of financing, facilitating, and promoting
foreign trade of India. · It was established in 1982 under the EXIM Bank of India Act
1981. · The bank lays special emphasis on the extension of Lines of
Credit (LOCs) to overseas entities, national govt., regional
financial institutions, and Commercial Banks. · The bank extends Buyers credit & suppliers credit to finance and
promote the country's exports. To promote hi-tech exports from India, the
bank has a lending program to finance the Research & Development (R &
D) activities of export-oriented companies. · The authorized capital of the EXIM bank is Rs. 200 crores & the
paid-up capital is Rs. 100 crore, wholly subscribed by the central
government. Primary
Function: · The Export-Import (EXIM) Bank of India is the principal financial
institution in India for coordinating the working of institutions engaged in
financing export and import trade. · To tap domestic & foreign markets for resources. undertaking
development & financial activities in the export sector (export &
import). NHB (
National Housing Bank ) Established: The bank started its operations
in July 1988. National Housing Bank was established under section 6 of the
National Housing Bank Act (1987). · The National Housing Bank (NHB), the apex institution of housing
finance in India, was set up as a wholly-owned subsidiary of the Reserve Bank
of India. ECGC (
Export Credit Guarantee Corporation of India ) Established: ECGC Ltd. was established on 30
July 1957 to strengthen the export promotion by covering the risk of
exporting on credit. · It is a company wholly owned by the Government of India. · ECGC provides insurance cover in
respect of risks in export trade. ECGC Ltd. provides export credit insurance
support to Indian export and is controlled by the Ministry of Commerce. · ECGC Ltd. is the 7 largest credit insurer in the world in terms of the courage of national exports. Primary Function: · Export Credit Guarantee Corporation of India. This organization
provides risk as well as insurance cover to the Indian exporters. SEBI (
Securities and Exchange Board of India ) Established: SEBI was first set up as a
non-statutory body in April 1988, to regulate the working of the stock
exchange. Later it was made an autonomous body on 12 April 1992 via SEBI Act
1992. 1st chairman of SEBI is Dr. S.A. Dave [12 April 1988-23 Aug
1990] Objective: Protects the interest of
investors and promotes the development of the stock exchange & regulates
the activities of the stock market. As per the SEBI Regulations, the level of risk will be depicted by the
color code boxes for Mutual Funds: · Blue: Principal at low risk · Yellow: Principal at medium
risk · Brown: Principal at high risk. · This regulation came into effect on 1 July 2013 post which all the
fund houses have labeled their funds can be the basis of the risk levels. SEBI has launched a centralized web-based system to redress complaints
by SCORES. Primary
Function: · SEBI is the security market regulator in India. NPCI
(National Payments Corporation of India) Headquarter: Mumbai · NPCI was incorporated in Dec 2008 & the certificate of
commencement of business was issued in April 2009. · NPCI was set up with the guidance & support of RBI& IBA
(Indian Bank's Association). · NPCI has successfully completed the major project of developing a
domestic card payment network-Rupay. · Presently, there are 10 crore promoter banks (SBI, PNB, BOB, BOI,
Canara Bank, Union Bank of India, ICICI, HDFC, Citi Bank & HSBC). · NPCI is the umbrella organization for all retail payments systems in
India. It introduced UPI, USSD, BHIM App, Bharat QR CODE, IMPS, National
Financial Switch, CTS, BBPS, Rupay, NACH, AEPS. Features
of NPCI Model AEPS
(Aadhar Enabled Payment System): It is a new payment service offered by the NPCI to banks, financial institutions
using the "Aadhar" number and online UIDAI authentication through
their respective Business correspondent service centers. RBI has approved the
pilot of AEPS. IMPS
(Immediate Payment System): It is an over the mobile 24×7 interbank electronic payment mechanism
that enables customers to use mobile instruments, internet banking & ATMs
as channels for accessing their bank accounts and placing interbank fund
transfers in a secured manner Requisites: 1.
MMID: Mobile Money Identifier is a7 digit code issued by banks to
their customers. This number is mandatory for the beneficiary of funds if he
wants to enter into a transaction 2.
IFSC: Indian Financial System Code is a code that is a kind of
identity for a specific bank. NFS
(National Financial Switch): It was initiated by the Institute of Development & Research in
Banking Technology and handed over to NPCI in 2009. NFS consists of a
national switch to facilitate connectivity between banks switcher & their
ATMs and an interbank payment gateway for authentication and routing the
payment details of various e-commerce transactions. NFS is India's largest
ATM connecting facility. The main purpose of NFS initially was to include
rural and cooperative banks under its umbrella. Rupay: Rupay is the Indian domestic card payment network being set up by NPCI
on the behalf of banks in India DICGC
(Deposit Insurance and Credit Guarantee Corporation) Established: Under the DICGC act 1961 on
15 July 1978. · Deposits of foreign Government. · Deposits of state/central government · Interbank Deposits · Deposit of state land development banks with state cooperative
banks · Any amount due on the account and Any amount exempted by RBI approval
deposit received outside India 2. DICGC insures up to a maximum
of Rs.500,000 for both principal & interest held by a customer as
on date of scheme merger/reconstruction or cancellation of bank's license
come into force (in case of multiple a/e still maximum insured amount is Rs.
5 lakh). GIC
(General Insurance Corporation) Founded: 22 Nov 1972 under the
companies act 1956 LIC
(Life Insurance Corporation of India) Headquarter: Mumbai · The company was founded in 1956 under the Life Insurance of
India act on 19 June 1956. LIC is an Indian state-owned insurance group and
investment company headquarters in Mumbai. It is the largest
insurance company in India. · LIC offers a variety of insurance products to its customers such as
insurance plans, unit-linked plans, special plans, and group schemes · LIC's slogan yogakshemam vahamyaha is
in the Sanskrit language which translates in English as "your
welfare is our responsibility". The slogan can be seen in the Logo,
written in devanagri script. AICIL
(Agriculture Insurance Company of India Limited) Started from 1 April 2003 Slogan: Sampann Bharat ki Pehchan,
Beemit Phasal Khushaal Kisan. · AICIL was incorporated with an authorized capital of Rs. 1500
Cr. It offers yield-based and weather-based crop insurance programs
in almost 500 districts of India. It covers almost 20 million farmers, making
it the biggest crop insurer in the world in number of farmers served. AICIL
commenced business from 1st April 2003. · AICIL is under the administrative control of the Ministry of
Finance, GOI and under the operational supervision of the Ministry of
Agriculture, GOI, IRDA, Hyderabad (India) is the regulatory body governing
AICIL. UTI
(Unit Trust of India) Mutual Fund Industry: Mutual fund Founded 1964 · UTI is a financial organization in India, which was created by the UTI
Act passed by the parliament of India on December 30, 1963, under the
direction of Col. Akash Behl. · UTI has established with an initial capital of Rs. 5 crores, contributed
by the RBI, LIC, SBI & its subsidiaries and scheduled banks &
financial institutions CDSL
(Central Depository Services Limited) Founded: Feb 1998 · It is the second Indian Central Securities Depository · CDSL holds securities either in certificated or uncertificated form,
to enable the book-entry transfer of securities. · CDSL is mainly promoted by Bombay Stock Exchange Ltd. (BSE) NSDL
(National Securities Depository Limited) Founded: 8 Nov 1996 · It is the first & largest electronic securities depository in
India. · It has established a national infrastructure using international
standards that handles most of the securities held & settled in
dematerialized form in the Indian capital market. NSDL
is promoted by: · IDBI (Industrial development bank of India Ltd.) – Largest development
Bank of India. · UTI (Unit Trust of India) Largest mutual fund in India. · NSE (National Stock Exchange of India Ltd.) - Largest stock exchange
in India. Some of the prominent banks in the country have taken a stake in NSDL · NSDL also has a subsidiary company NSDL Database Management Ltd. NSDL
e-Governance, Infrastructure Limited (NSDL e-Govt): · NSDL e-Gov was originally set up as a Depository in 1995. e-Governance
solutions have helped governments to identify and clear bottlenecks, promote
transparency, reduce service delivery cost & efficiently · NSDL e-Governance Infrastructure Ltd. and the pension fund Regulatory
and Development Authority (PFRDA) have entered into an agreement relating to
setting up a Central Recordkeeping Agency (CRA) for the National Payment
System (NPS). The NPS was introduced by Govt. of India for its new
recruiters (except the Armed Forces) joining w.e.f. 1 Jan 2004. NIBM
(National Institute of Bank Management) Established: 1969
· Sh. K.L. Dhingra is the current director of the
institute as on 2017 · A major activity is the regular publication of the following two
quarterly journals in English: · (i) Prajnan: Journal of social and
management sciences: A leading refereed quarterly journal (launched in
1972) · (ii) Vinimaya: Present conceptual
& practical viewpoints of both bankers & management educationists
(Launched in 1979) · Member Banks: In addition to RBI,
its associate member banks are the SBI and several of its subsidiaries, 19
National Banks & two foreign banks HSBC & Bank of America NOFHC
(Non-operating Financial Holding Company) · RBI-wide notification released on 7-4-2014 has informed the concerned
financial institution that non-operative financial holding companies (NOFHCs)
will be a separate category of NBFCs. · Promoter groups will be permitted to set up a new bank only through a
wholly-owned NOFHO which will hold the banks as well as all other financial
services companies regulated by RBI or other financial sector
regulators. · NOFHC will be registered as a non-deposit-taking non-banking financial
company (NBFC) with the Department of
Non-Banking Supervision (DNBS) of the Reserve Bank. CERSAI
(Central Registry of Securitization Asset Reconstruction and Security
Interest) Founded: 11 March 2011 · CERSAI is a central online mortgage registry of India which maintains all central registries of mortgages in India. It
was primarily created to check mortgage frauds in which
people took multiple loans on the same assets from different banks. · It was formed under (SARFAESI ACT-2002) and register under
section 25 of the companies act 1956. · This is a government company with a shareholding of 51% by the
central government and selected public sector banks & National
Housing Bank are also shareholders. · According to government directives, financial institutions must
register a Banking and Economic Awareness mortgage within 30 days of
its creation. · It aims to help potential buyers by providing them the proper history
of the Asset and Lenders can assess data to check whether the same asset has
been mortgaged with any other financial institution. CAPART
(Council for Advancement of People's Action and Rural Technology) Headquarters: New Delhi Objectives
of Capart: · To encourage, promote, assist voluntary action for the implementation
of projects intending enhancement of rural prosperity and to make efforts in
rural development with the help of new technology inputs. · To promote, plan, undertake, develop maintain and support
projects/schemes aimed at all-around development and create employment
opportunities in rural areas. · CAPART deals with the public through Voluntary Organizations (VOs). It
has been made mandatory for the VOs to register themselves on the National
Portal (NGO-PS) and apply & track the status of their applications
online PFRDA
(Pension Fund Regulatory Development Authority) Chairman: Supratim Bandyopadhyay · It was established by GOI on 23 Aug 2003. The Government has an executive order, that mandates PFRDA to act as
a regulator for the pension sector, PFRDA is authorized by the
Ministry of Finance. · PFRDA promotes old age income security by establishing, developing,
and regulating pension funds and protects the interest of subscribers to a scheme
of pension funds. It is responsible for the appointment of various
intermediate agencies such as CRA (Central record-keeping agency). EPFO
(Employees Provident Fund Organisation) Head office: New Delhi · It is a statutory body of GOI under the "Ministry of Labour &
Employment". It administrates a compulsory
contributory provident fund scheme, pension scheme, and Insurance
Scheme. · On 1 Oct 2014 PM "Narendra Modi" launched a universal
account number of employees covered by EPFO to enable PF number portability. The
Employees provident fund & miscellaneous provision Act, 1952 come into
effect on 4 March 1952. The board is chaired by the Union Labour Minister of
India (The chief executive of the EPFO). EPFO act is not applicable in Jammu
& Kashmir. BCSBI
(Banking Codes and Standards Board of India) Chairman: Shri. A.C. Mahajan Formed: 18 Feb 2006 IDRBT
(Institute for Development & Research in Banking Technology) Established: In 1996 by RBI · IDRBT is the only institute in India that exclusively focuses on
Banking Technology · IDRBT is also an academic institution that offers a range of academic
& research programs, designed specifically to meet both the existing and
emerging requirements of the Banking and Financial sector in India. OECA
(Export Credit Agency) Head office: Mumbai · EXIM Bank, ECGC (Export Credit Guarantee Corporation of India) are two
export credit agencies in India. · Export credit agency of CHINA has the highest capital. SHCIL
(Stock Holding Corporation of India Ltd.) Headquarter: Mumbai. Key People: Shri Ramesh NGS (Chairman) · It is India's largest custodian and depository participant. SHCIL is known for its online trading portal with investors and
traders. It also looks after the e-stamping systems around India. · SHCIL has been appointed as a point of presence (POP) by PFRDA for
National Pension System (NPS). It offers a full spectrum of NPS services and
facilities to all citizens. SHCIL is the only Central Record Keeping Agency
(CRA) appointed by the government of India. NICL
(National Insurance Company Limited) Headoffice: Kolkata |
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