இந்தக் கட்டுரையில், TNPSC குரூப் 1, குரூப் 2, குரூப் 2A, குரூப் 4 மாநிலப் போட்டித் தேர்வுகளான TNUSRB, TRB, TET, TNEB போன்றவற்றுக்கான முறைகள் இலவசக் குறிப்புகளைப் பெறுவீர்கள்.தேர்வுக்கு தயாராவோர் இங்குள்ள பாடக்குறிப்புகளை படித்து பயன்பெற வாழ்த்துகிறோம்.
Background of Banking
Historical Development of Central banks
The Ricks Banks of Sweden, which had sprung from a private bank established in 1656, is
the oldest central bank in the world.
It acquired the sole right of issue of notes in 1897.
But the fundamentals of the art of banking have been developed by the Bank of England
(1864) as the first bank of issues.
A large number of central banks were established between 1921 and 1954 in
compliance with the resolution passed by the International Finance Conference
held at Brussels in 1920. They are
The South African Reserve Bank (1921),
The Central Bank of China (1928),
The Reserve Bank of New Zealand (1934),
The Reserve Bank of India (1935),
The Central Bank of Ceylon (1950) and
The Bank of Israel (1954)
Reserve bank of India and industrial finance
Though industries get finance from commercial banks, the quantum and the term will
be very much limited generally.
Commercial banks lend for short term only, as they get only short-term deposits from
the public. Further lending to industries is only a fragment of the total lending by the
banks.
Hence, there is a need and urgency of establishing long-term credit facilities to
industries.
Institutional Set-up in India:
All-India Level Institutions
Industrial Finance Corporation of India (IFCI)
Industrial Credit and Investment Corporation of India (ICICI)
Industrial Development Bank of India (IDBI)
State Level Institutions
State Financial Corporation’s (SFCs)
State Industrial Development Corporation (SIDCs)
All-India Level Institutions:
1. Industrial Finance Corporation of India (IFCI)
This was first in the chain of establishment of financial corporations to provide financial
assistance for industrial development.
This was established on July 1, 1948 under the Act of the Parliament. IFCI provides
assistance to the industrial concerns in the following ways:
Long-term loans; both in rupees and foreign currencies.
Underwriting of equity, preference and debenture issues.
Subscribing to equity, preference and debenture issues.
Guaranteeing the deferred payments in respect of machinery imported from abroad
or purchased in India; and
guaranteeing of loans raised in foreign currency from foreign financial
institutions.
Financial assistance of IFCI can be availed by any Limited Company in the
public, private or joint sector, or by a co-operative society incorporated in India,
which is engaged or proposes to be engaged in the specified industrial activities.
Such financial assistance will be available for the setting up of new industrial
projects and also for the expansion diversification, renovation or modernisation of
existing ones.
The IFCI also provides financial assistance on concessional terms for setting up
industrial projects in industrially less developed districts in the States or Union
Territories notified by the Central Government.
The IFCI raises its resources by way of
issue of bonds in the market,
borrowing from Industrial Development Bank of India and the Central Government,
foreign credit secured from foreign financial institutions and borrowings in the
international capital markets.
2. Industrial Credit and Investment Corporation of India (ICICI)
This was set up on 5 th January 1955 as a joint-stock company on the advice given by a
three-man mission sponsored by the World Bank and The Government of USA to the
Government of India.
The principal purpose of this institution is to channelise the World Bank funds to
industry in India and also to help build up a capital market.
Initially the capital of ICICI was held by private companies, institutions and individuals.
But now, a very large part of its equity capital is held by public sector institutions, such
as banks, LIC, GIC and its subsidiaries, as this private institution was nationalized.
The significant feature of the operations of ICICI is the foreign currency loans sanctioned
by this institution to industries.
Since its inception, nearly 50 per cent of its disbursement had been in foreign
currencies.
This is possible because of the facility it enjoys raising funds in foreign currencies. The
World Bank has been the single largest source of such funds.
Since 1973, the ICICI has entered the international capital markets also for raising
foreign currency loans.
The major portion of its rupee resources is raised by way of debentures in the capital
market.
The ICICI also borrows from the Industrial Development Bank of India and the
Government. The major portion of its assistance has gone to the private sector.
Functions of ICICI
Assistance to industries
Provision of foreign currency loans
Merchant banking
Letter of credit
Project promotion
Housing loans
Leasing operations
Industrial Development Bank of India (IDBI)
The Industrial Development Bank of India has been conceived with the primary object of
creating an apex institution to co-ordinate the activities of other financial institutions,
including banks.
The Development Bank was a wholly-owned subsidiary of the Reserve Bank of India up
to February 15, 1976.
It was delinked from the RBI with effect from February 16, 1976 and made an
autonomous corporation fully owned by the Government of India.
Functions of IDBI:
The functions of IDBI fall into two groups:
Assistance to other financial institutions; and
Direct assistance to industrial concerns either on its own or in participation with
other institutions. The IDBI can provide refinance in respect of term loans to
industrial concerns given by the IFC, the SFCs, other financial institutions notified by
the Government, scheduled banks and state cooperative banks.
A special feature of the IDBI is the provision for creating a special fund known as
the Development Assistance Fund.
The fund is intended to provide assistance to industries which require heavy
investments with a low anticipated rate of return. Such industries may not be able
to get assistance in the normal course.
The financing of exports was also undertaken by the IDBI, till the establishment
of EXIM bank in March, 1982.
Reserve Bank of India
Reserve Bank of India
The Reserve Bank of India (RBI) is India’s central banking institution.
RBI controls the monetary policy of the Indian rupee.
Formed on April 1, 1935 in accordance with the RBI Act, 1934.
The RBI was nationalised on January 1,1949.
The Headquarters shifted from Calcutta to Mumbai in 1937.
Sir Osborne Smith was the first Governor of RBI.
Administration
It is the Central Bank/Regulator for all Banks in India.
It also called as “The Lender of Last Resort”.
A Governors and 4 Deputy Governors along with a central board of directors are
appointed by the government of India.
Functions
Monetary Authority
It controls the supply of money in the economy to sstabilise the exchange rate, maintain
a healthy balance of payment, attain financial stability, control inflation and strengthen
the banking system.
The issuer of currency
It is the sole authority to issue currency in India except for coins and 1 rupee
currency notes.
To maintain the currency and credit system of the country.
It also takes action to control the circulation of fake currency.
The issuer of Banking License
As per Section 22 of the Banking Regulation Act, every bank has to obtain a banking
license from the RBI to conduct banking business in India.
Banker to the Government
It acts as banker both to the central and the state governments.
It provides short-term credit.
It manages all new issues of government loans, servicing the government debt
outstanding and nurturing the market for government securities.
It advises the government on banking and financial subjects.
Banker’s Bank
RBI is the bank of all banks in India.
It provides a loan to banks, accepts the deposit of banks, and rediscount the bills
of banks.
Lender of last resort
The banks can borrow from the RBI by keeping eligible securities as collateral at
the time of need or crisis when there is no other source.
Act as a clearing house
The RBI manages 14 clearing houses for settlement of banking
transactions.
It facilitates the exchange of instruments and processing of payment
instructions.
Custodian of foreign exchange reserves
It acts as a custodian of FOREX.
It administers and enforces the provision of the Foreign Exchange Management
Act (FEMA), 1999.
RBI buys and sells foreign currency to maintain the exchange rate of Indian rupee
versus foreign currencies.
Regulator of Economy
It controls the money supply in the system, monitors different key indicators like GDP,
Inflation, etc.
Managing Government securities
RBI administers investments in institutions when they invest specified minimum
proportions of their total assets/liabilities in government securities.
Regulator and Supervisor of Payment and Settlement Systems
RBI focuses on the development and functioning of safe, secure and efficient payment
and settlement mechanisms under the Payment and Settlement Systems Act of 2007
(PSS Act).
Developmental Role
RBI helps in the development of the quality banking system in India and
ensures that credit is available to the productive sectors of the economy.
It also includes establishing institutions designed to build the country’s
financial infrastructure.
It also helps in expanding access to affordable financial services and
promoting financial education and literacy.
Publisher of monetary data and other data
RBI collects, collates and publishes data regularly.
RBI maintains and provides all essential banking and other economic data,
formulating and critically evaluating the economic policies in India.
Exchange manager and controller
RBI represents India as a member of the International Monetary Fund
[IMF].
Most of the commercial banks are authorised dealers of the RBI.
Banking Ombudsman Scheme
RBI introduced the Banking Ombudsman Scheme in 1995.
Under this scheme, the complainants can file their complaints in any form,
including online.
They can also appeal to the Ombudsman against the awards and the other
decisions of the banks.
Banking Codes and Standards Board of India
To measure the performance of banks against codes and standards based on
established global practices, the RBI has set up the Banking Codes and
Standards Board of India (BCSBI).
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