1. The fiscal policy of India is formulated by finance ministry.
2. The Indian railway is a departmental enterprise.
3. The core sector does not include '' Detergents ''
4. The Khadi and village industries commission (KVIC) was set up during the second plan.
5. SIDCO is related to the development of small industries.
6. Dandakaranya project ensured '' Rehabilitation of refugees '’.
7. The most important small scale industry in India is the industry '' Handloom ''.
8. The major finance for small scale industries is '' Bank loans ''.
9. Banking ombudsman is appointed by RBI.
10. Tiger is the animal on the insignia of the RBI.
11. Since 1983, the RBI's responsibility with respect to regional rural banks was transferred to NABARD.
12. The new name of IRCI is IRBI.
13. Fiscal policy is connected with public revenue and expenditure.
14. In India, present trend of rapid urbanization is due to '' lack of employment opportunities in rural areas.
15. The minimum permissible age for employment in small scale industries is 14 years.
16. Credit creation increases purchasing power of the currency.
17. The philosophy of Laissez fair is associated with industrial state.
18. The modern state is welfare state.
19. Economic planning refers to the allocation of resources.
20. Economic planning is an essential feature of socialist economy.
21. In the state of India, the state financial corporations have given assistance mainly re develop medium and small scale industries.
22. The term '' plastic money'' applies to transactions made up of credit cards mainly issued by banks.
23. Corporate businesses provides the largest part of the demand for loanable funds in India.
UNIT-4
BANKING
First bank in the country was started at Calcutta in 1770 bank of Hindustan.
The bank of Bengal, the bank of Bombay, the bank of madras these all presidency banks were merge and in 1921 Imperial bank were established.
On 1st July 1955 the Imperial bank was partially nationalized and it was name as state bank of India. At present state bank is the largest commercial bank in the country.
State bank of India has completed 200 years of banking business in India.
Denmark’s saxo bank enters in to Indian market to replicate its global strategy of providing international stocks& financial instruments to clients who are exploring investment opportunities in overseas market.
UCO bank introduces pre funded Cheques series of Rs. 1000, 5000, 10000.
Bank of Rajasthan merge with ICICI bank 13 Aug. 2010.
Punjab national bank was the first Indian bank. It established in 1894.
Reserve bank of India established on 1st April 1935 under the act 1934 and it is a central bank of India. Its head office is in Mumbai earlier in Calcutta. RBI nationalized on 1st January 1949. Raghuram Rajan 23rd governor of RBI.
On 19th July 1969 , 14 large commercial banks nationalized then on 15th April 1980 , 6 more banks were nationalized as new bank of India merge with PNB so total nationalized bank is 19.
Those banks whose names are included in the second schedule of reserve bank act 1934 are called commercial banks.
Prime lending rate is replaced by base rate 1st July 2010
USB (Ultra small branches) in all villages under the financial inclusion scheme by march 31 2012
Regional rural banks were established in 1975 are working in all states of country except in Sikkim & Goa. At present 67 RRBs are working in India.
The nation largest lender state bank of India has commence operations in Qatar by opening a branch in the Qatar financial Centre, Doha.
As per the declaration made by government in parliament, ten rupees coins are being introduced shortly into circulation to meet the increasing demand of currency notes of lower value.
RBI occupies the apex position in the Indian money market.
RBI of India (amended) bill 2005 has been approved by Lok Sabha on 17th may 2006. This bill amends the RBI act for providing flexibility to the central bank in India fixing CRR & SLR.
SBI launches Parivartan scheme to provide better training to its staff including high officials, clerks and peons.
SBI commercial & international bank ltd (SBICI BANK LTD) has been finally merged with state bank of India in July 2011. SBICI two branches in Mumbai.
SIDBI amendment bill 2012 introduced in parliament on 22nd may 2012 definition of industrial concern to cover floriculture , setting up or development of tourism related facilities, construction and entertainment industry film & to accept repayment of foreign currency loans in foreign currency & maintaining foreign currency loan a/c.
SBI merges its Mauritius based subsidiary, Indian ocean International bank IOIB with SBI international (Mauritius) in African island nation.
Money market is that organization which provides short term credit. Capital market is to provide long term capital.
Government share in SBI reduced to 51% from 59% to mobilize Rs. 12000 Crores.
IDBI (Industrial development bank of India) has been the apex institutions of industrial finance in country. Commencement of business on 8th Sep 2004. It became IDBI ltd on 1st Oct 2004 and established in 1964.
Finance Asia award to Kotak bank (7th time)
Imperial bank established in 1921.
SIDBI established on 2nd April 1990, its headquarter is at Lucknow.
Unit trust of India (UTI) was established in 1964 with the objective of mobilizing the small savings of the people for their suitable & profitable investment. It has now been bifurcated in UTI – 1 and UTI- 2.
UTI bank ltd has been renamed as AXIS bank ltd. This was from 30th July 2007.
NABARD (national bank for agriculture and rural development) established on 12th July 1982 as the apex financing institutions for agriculture & rural development.
Export import of India (EXIM) is the apex institution for financing exports and imports. It was established on 1st Jan 1982.
UTI started the first bank in private sector on 2nd April 1994. Its head office is at Ahmedabad. It renamed as AXIS bank.
SBI becomes the first registrar for unique identification authority of India (UDAI) now renamed as Aadhaar for collecting both demographic and biometric information’s of bank a/c holders.
Mobile number portability (MNP) launched on Nov 25, 2010 in Haryana, now all over country from Jan 20, 2011.
Chandigarh 10th largest e commerce hub in India.
India oil corporations (IOC) has completed 50 years of its establishment on 30th June 2009. (Golden jubilee)
First bank with limited liability managed by Indian board was Oudh commercial bank in 1881.
SFCs (State financial corporations)
It was established in 1948.
State financial corporation act was passed by parliament on Sep 1951.
First SFCs set up in Punjab in 1953.
At present there are 18 SFCs (out of which 17 SFCs were established under SFC act 1951).
Tamil Nadu Industrial Investment corporation Ltd establish under company act 1949 (18th SFCs).
SFCs promote small and medium industries of the states.
SFCs are helpful in ensuring balanced regional development, higher Investment, more employment generation and broad ownership of Industries.
Act as a regional development bank.
It has failed to meet the demand of small and medium industries.
IDBI (Industrial development Bank of India).
Industrial development bank of India established under industrial development bank of India act 1964.
A principal financial institution for promoting credit and other facilities for developing industries & assistant developing institutions.
Till 1976, IDBI was a subsidiary bank of RBI.
In 1976 it was separated from RBI and the ownership was transferred to government of India.
To provide financial assistance to industrial enterprises & to promote institutions engaged in industrial development.
IDBI which was established as development finance institution under IDBI act 1964 has been converted as a banking Company.
IDBI got certificate of commencement of business on 28th Sep 2004 and IDBI was transformed into IDBI Ltd on 1st Oct 2004, a company under companies act 1956 and scheduled bank under RBI act 1934.
Apex organization in development financing
Act as a lender of the last resort
Headquarter is at Mumbai
RRB (Regional Rural Bank).
Regional rural bank was established on 2nd Oct 1975 under the provisions of RRB act 1976 with a view to develop rural economy.
It was established to take banking services to the door step of rural masses, especially in remote rural areas with no access to banking services.
It also provide institutional credit to weaker sections of society at concessional rate.
On 2nd Oct 1975, 5 RBBs were established at 1) Moradabad (U.P) 2) Gorakhpur (U.P) 3) Bhiwani (Haryana) 4) Jaipur (Rajasthan) 5) Malda (West Bengal)
With effect from 1997 priority sector lending was made applicable to RRBs
The union cabinet on 31st Jan 2013 gave its approval to the proposed amendments in RRBs Act 1976 to enhance authorized and issue capital to strengthen their capital base.
RBI on 13th June 2006 announced its liberalized licensing policy for RRBs.
RRBs known as Small man bank.
Total 82 RRBs , in which 46 are amalgamated and 36 are standalone
New 82nd RRBs was Puduval Bhathiar Grama Bank Pondicherry 26 mar 2008.
All RRBs to adopt core banking system (CBS) by Sep 2011.
Khushro committee- agriculture credit review committee. Khushro said that RRBs to merge with sponsor bank.
MC Bhandari committee to restructuring of RRBs.
Prof VS Vyas recommendation advising committee on flow of credit to agriculture & related act to restrict RRB in order to improve their operational viability & to take advantage of economies of scale were accepted.
NABARD (National bank for agriculture & rural development).
ARC- Agricultural refinance corporations 1963.
It is the apex banking institution providing finance for agriculture & rural development.
It was established on 12th July 1982.
Start with paid up capital of Rs. 100 crore 50:50 (Gov.: RBI) but now it’s (99:1) (GOV: RBI).
NABARD amendment bill 2000 was accepted by the president in Jan 2001.
Authorized capital of NABARD to Rs. 20000 crore from Rs 5000 crore.
Paid up capital increased in 2 phase of Rs 2000 cr to 5000 crore.
In 2006-2007 Bharat Nirman construction of rad under PMGSY total sanctions of NABARD TO NRRDA (National rural road development) under RIDF on 31st mar 2010 Rs 18500 crore to NRRDA.
SIDBI (Small industries development bank of India).
It was established as a wholly owned subsidiary of IDBI under the small industries development bank of India Act Oct 1989 as the principal financial institution for promotion, financing & development of industries in small scale sector.
SIDBI act as a apex role to provide finance to small scale sector.
It started its functions from 2nd April 1990.
Its headquarter is in Lucknow.
SIDBI provides loan under its single window service.
IDBI largest shareholders of SIDBI, SBI & LIC next.
SIDBI amendment bill 2012 introduced by Pranab Mukherjee in lok sabha on 22nd May 2012. In SIDBI amendment bill definition of Industrial concern is 1) expand activities to floriculture 2) development of tourism related 3) construction facilities 4)
entertainment industry.
It also provides to accept repayment of foreign currency loans in foreign currency & maintaining foreign currency loan account as required under any law or accounting standard.
Government of India announced in budget 1988-1989 to establish SIDBI.
IFCI (Industrial Finance Corporation of India).
IFCI Ltd was established in 1948 under a special act on the recommendation of central banking enquiry committee.
IFCI was the first all India development financial institution to be set up
To arrange medium & long term credit carious industrial enterprises of country.
On 1st July 1993 IFCI given the status of Ltd Company with the name IFCI Ltd. It got its registration under company act 1956.
IFCI will soon merge with PNB.
UTI (Unit trust of India).
First private bank & popular in west.
UTI set up on 26th Nov 1963 after an act passed on 1962.
It was effective from 1st July 1964
Objective of UTI is to mobilize the small savings of the people for their suitable and profitable investment.
UTI are open end investment as they sell their shares units continuously in order to raise additional capital. Redeem their shares (repurchase) to ensure high liquidity.
UTI 1 has been named as administrator of the specified undertakings of the unit trust of India (private)
UTI 2 SBI, PNB, BOB, LIC set up. (Public)
UTI mutual fund, UTI Trustee Company, UTI Asset Management Company.
Government signed as agreement on 15 Jan 2003 for transfer of undertakings
1st Feb 2003 was appointment day and bifurcation of UTI 1 an UTI 2.
UTI abolish Raj Laxmi unit plan 2 which came in 1992 for girls benefit on 1st Oct 2000.
On 31st May 2003 US-64 came to an end.
On 31st July 2007 UTI was renamed as AXIS bank
UTI mutual fund join hands with Sri Mahila SEWA Sahkari scheme to unorganized women workers through UTI retirement benefit pension fund.
UTI has launched a pension scheme for the extremely poor among the India workers for a minimum contribution of Rs. 50 women working with SEWA (Self -employed women association)