BANKING AFFAIRS

Detailed explanation-1: -IDBI: IDBI (Industrial Development Bank of India) was established by an Act of Parliament as a wholly-owned subsidiary of the RBI to give credit and other financial facilities for the development of Indian industry on 1st July 1964.

Detailed explanation-2: -Industrial Finance Corporation of India (IFCI): It is the oldest SFI set up in 1948 with the primary objective of providing long-term and medium-term finance to large industrial enterprises.

Detailed explanation-3: -Industrial Development Bank of India (IDBI): The Industrial Development Bank of India was set up in 1964 to provide long-term finance to industry.

Detailed explanation-4: -The principal sources of funds of IDBI are: Share capital and reserves. Borrowing from Government of India and RBI. Market borrowing by way of bonds.

Detailed explanation-5: -The objective of the IDBI includes: Coordinating, supervising, and controlling the activities of Finacial Institutions like ICICI, LIC, etc. The Collection of resources for other financial institutions and providing financial assistance. Planning and promoting key industries to enhance industrial growth.