BANKING AFFAIRS

Detailed explanation-1: -Industrial Development Bank of India (IDBI) was constituted under the Industrial Development Bank of India Act, 1964 as a Development Financial Institution (DFI) and came into being on July 01, 1964, vide GoI notification dated June 22, 1964.

Detailed explanation-2: -Industrial Development Bank of India was established under the Industrial Development Bank of India Act, 1964.

Detailed explanation-3: -Commenced operations in July 1964. IDBI established as a subsidiary of the Reserve Bank of India with the purpose of providing long term industrial finance.

Detailed explanation-4: -(2) The Development Bank shall be a body corporate with the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by that name sue or be sued.

Detailed explanation-5: -It was regarded as a Public Financial Institution in terms of the provisions of Section 4A of the Companies Act, 1956. It continued to serve as a DFI for 40 years till the year 2004 when it was transformed into a Bank.