What is the meaning of industrial development banks?

The Industrial Development Bank is the latest in the series of specialised institutions set up to finance and develop industry — institutions which have, by and large, failed to make a significant impact.

What do you mean by Industrial Development Bank of India?

IDBI stands for Industrial Development Bank of India. It is an Indian government-owned financial service company, headquartered in Mumbai. It was formerly known Industrial Development Bank of India. It was established in 1964 to provide credit and other financial facilities for the development of Indian industry.

What is IDBI and its function?

Industrial Development Bank of India (IDBI) established under Industrial Development Bank of India Act, 1964, is the principal financial institution for providing credit and other facilities for developing industries and assisting development institutions.

What is the role of Industrial Development Bank of India?

1. Planning, promoting and developing industries with a view to fill the gaps in the industrial structure by conceiving, preparing and floating new projects. 2. Providing technical and administrative assistance for promotion, management and expansion of industry.

What is Industrial Bank and examples?

An industrial bank is a type of financial institution that offers only a limited range of services. Industrial banks accept customer deposits and sell certificates, also known as investment shares. Examples of industrial banks include the Industrial Bank of China, Industrial Bank of Iraq, and Industrial Bank of Korea.

Which bank is a Industrial Bank?

An industrial bank is a state-chartered, financial institution, usually owned by a commercial firm, that is not regulated by a federal banking agency. Industrial banks accept customer deposits and provide loans for consumers and small businesses. Industrial banks are also known as industrial loan companies (ILCs).

What are the function of Industrial bank?

The Bank of Industry main objective is to promote industrial sector of the economy, in doing so, it is targeted at financing plants and equipment only. Financing raw materials and working capital of businesses are not in its financing preferences, lest alone financing lands and buildings.

How do bank rates work?

A bank rate is the interest rate at which a nation’s central bank lends money to domestic banks, often in the form of very short-term loans. Managing the bank rate is a method by which central banks affect economic activity.

What is the main function of Industrial bank?

Industrial banks sell investment certificates, debentures and shares for the purpose of investment. Because of its role as an investment bank, its main function is to provide facilities for people to invest in debentures and shares.

Which was the first Nationalised bank?

the Reserve Bank of India
The first bank in India to be nationalized was the Reserve Bank of India which happened in January 1949. Further, 14 other banks were nationalized in July 1969. Bank of India, PNB, and many others were part of this nationalization.

What is RBI role?

RBI regulates the financial system of our country. It regulates and supervises the activity of other banks by various methods like supervising the bank license, inspections, off site surveillance etc thereby, building the confidence of the public in the banking system.

Which is the Industrial Development Bank of India?

Industrial Development bank of India (IDBI) was constituted under Industrial Development bank of India Act, 1964 as a Development Financial Institution (DFI) and came into being as on July 01, 1964 as a wholly owned subsidiary of RBI.

When was the IDBI Bank established in India?

IDBI Bank (Industrial Development Bank of India) was established in 1964 by an Act of Parliament to provide credit and other financial facilities for the development of the fledgling Indian industry.

Which is the best description of a Development Bank?

The long term requirements of business concerns are provided by industrial banks, and the various long term lending institutions which are created by government. In India these long term lending institutions are collectively referred as development banks. They are: Industrial Finance Corporation of India ( IFCI ), 1948

What is the role of IDBI in industrial financing?

IDBI subscribes to the shares and bonds of the financial institutions and thereby provide supplementary resources. Coordinating the activities of financial institutions for the promotion and development of industries. IDBI is the leader, coordinator and innovator in the field of industrial financing in our country.