BANKING AFFAIRS

Detailed explanation-1: -The State Financial Corporations Act was passed in 1951 which provides power to all the states and union territories to set up State Financial Corporations. They are State Level financial institutions that play an important role in the growth of the small and medium enterprises in the concerned states.

Detailed explanation-2: -The State Finance Corporations (SFCs) are an integral part of institutional finance structure of a country. Where SEC promotes small and medium industries of the states. Besides, SFC help in ensuring balanced regional development, higher investment, more employment generation and broad ownership of various industries.

Detailed explanation-3: -The SFCs help small and medium enterprises by providing loans for the purchase of plant and machinery, equipment, tools, etc. The SFCs also offer venture capital funding to small and medium enterprises. The SFCs provide term loans to sick units for rehabilitation purposes.

Detailed explanation-4: -IFCI Ltd (IFCI) was set up as a Statutory Corporation (“The Industrial Finance Corporation of India”) in 1948 for providing medium and long term finance to industry.. In 1993, after repeal of the Industrial Finance Corporation Act, IFCI became a Public Limited Company, registered under the Companies Act, 1956.

Detailed explanation-5: -In India, the state Financial Corporation has given assistance to mainly develop medium and small scale industries.