All India Financial Institutions
From Wikipedia, the free encyclopedia
All India Financial Institutions (AIFI) is a group composed of financial regulatory bodies that play a pivotal role in the financial markets. Also known as "financial instruments", the financial institutions assist in the proper allocation of resources, sourcing from businesses that have a surplus and distributing to others who have deficits - this also assists with ensuring the continued circulation of money in the economy. Possibly of greatest significance, the financial institutions act as an intermediary between borrowers and final lenders, providing safety and liquidity. This process subsequently ensures earnings on the investments and savings involved.[1] In Post-Independence India, people were encouraged to increase savings, a tactic intended to provide funds for investment by the Indian government. However, there was a huge gap between the supply of savings and demand for the investment opportunities in the country.[1]
As of 2022, there are five financial regulatory bodies under the jurisdiction of Reserve Bank of India as all-India Financial Institutions:
- Export - Import Bank of India (Exim Bank)
- National Bank for Agriculture and Rural Development (NABARD)
- Small Industries Development Bank of India (SIDBI)
- National Housing Bank (NHB)
- National Bank for Financing Infrastructure and Development (NaBFID)
Industrial Development Bank of India
IDBI is no longer an AIFI and has been converted into a universal bank by the Government of India. The IDBI was established to provide credit for major financial facilities to assist with the industrial development of India. It was established in 1964 by RBI, and was transferred to the government of India in 1976. The government holdings in IDBI, after the IPO, is 51.4%.[2] By the end of September 2004, the IDBI asset base was Rs. 36850 crore.[3]
Diversification of activities of IDBI
Since 1990, IDBI has set up a number of institutes, including:
