Financial Institutions in India

By Nitin Singhal|Updated : December 30th, 2020

Hello Students,

In this article, we are providing you with a list of Financial Institutions in India. This article will cover the static portion of the Syllabus which consists of the traditional GK questions.

Financial Institutions in India

The Financial Institutions play a significant role in the financial markets as well as the economy of the country by allocation of resources, sourcing from businesses. These are comprised of various development finance institutions and investment institutions.

Reserve Bank of India

  • Established- 1 April 1935
  • Headquarter: Mumbai
  • Governor: Shaktikanta Das
  • Objective- 
    • Issue and supply of the Indian rupee. 
    • Regulation of the Indian banking system. 
    • Manage the country's main payment systems.

NABARD (National Bank for Agriculture and Rural Development)

  • Established: 12th July 1982 on the recommendation of Sivaraman Committee.
  • Headquarter: Mumbai
  • Chairman: Dr. G.R. Chintala
  • Objective-
    • To uplift Rural India & rural non-farm sector. 
    • Regulator for co-operative banks and Regional Rural Banks.

Urban Co-operative banks

  • Classified into scheduled and non-scheduled banks.
  • They are only partly regulated by the RBI. 
  • They are structured as joint-stock companies.
  • Example- Punjab and Maharashtra Co-operative (PMC) Bank

SIDBI (Small Industries Development Bank of India)

  • Established: 2nd April 1990 as a subsidiary of Industrial Development Bank of India.
  • Headquarter: Lucknow
  • Chairman: Mohammad Mustafa, IAS
  • Objective:
    • Refinances loan & advances provided by the existing lending institution to small-scale units. 

Nationalized Banks

  • First banks in India- Bank of Bengal (1809), Bank of Bombay (1840), and Bank of Madras (1843).
  • On July 19, 1969, under the regulatory authority of the RBI, the Government of India nationalized the 14 banks including State Bank of India, Canara Bank, Syndicate Bank, Punjab National Bank, Andhra Bank, Allahabad Bank, etc.

IRDAI (Insurance Regulatory and Development Authority of India)

  • Established: 1999
  • Headquarter: Hyderabad
  • Chairman: Subhash Chandra Khuntia
  • Objective 
    • Regulation and Promotion of the insurance and reinsurance industries in India.

EXIM BANK ( Export Import Bank )

  • Established: 1st January, 1982
  • Headquarter: Mumbai
  • Chairman: TC Venkat Subramanian
  • Objective 
    • Financing, facilitating and promoting foreign trade of India.

NHB (National Housing Bank)

  • Established: July 1988
  • Headquarter: New Delhi
  • Chairman: R V Verma.

ECGC (Export Credit Guarantee Corporation of India)

  • Established: 30 July, 1957
  • Headquarter: Mumbai
  • Chairman: M Senthilnathan
  • Objective: 
    • Strengthen the export promotion by covering the risk of exporting on credit.

SEBI (Securities and Exchange Board of India)

  • Established: April 1988 but become an autonomous body on 12 April 1992
  • Headquarter: Mumbai
  • Chairman: Ajay Tyagi
  • Objective: 
    • Protects the interest of investors and to promote the development of stock exchange & regulate the activities of stock market.  

NPCI (National Payments Corporation of India)

  • Established: December, 2008
  • Headquarter: Mumbai
  • Chairman: Biswamohan Mahapatra
  • Objective:
    • It is an umbrella organisation for all retail payments systems in India.

DICGC (Deposit Insurance and Credit Guarantee Corporation)

  • Established: 15 July 1978.
  • Head office: Mumbai
  • Chairman: Michael Patra
  • Objective:
    • Insures all bank deposits as saving, fixed, current, recurring etc.

GIC (General Insurance Corporation)

  • Established: 22 November 1972
  • Headquarter: Mumbai
  • Chairman: Devesh Srivastava
  • Objective:
    • Sole reinsurance company in the Indian insurance market.

LIC (Life Insurance Corporation of India)

  • Established: 1956
  • Headquarter: Mumbai
  • Chairman: M R Kumar
  • Objective:
    • Offers various insurance products to its customers such as insurance plans, unit linked plans, special plans and group schemes

AICIL (Agriculture Insurance Company of India Limited)

  • Established: 1 April 2003
  • Headquarter: New Delhi
  • Chairman: Malay Kumar Poddar

CDSL (Central Depository Services Limited)

  • Established: 1998
  • Headquarter: Mumbai
  • Chairman: B V Chaubal
  • Objective:
    • It is the second Indian Central Securities Depository 
    • It holds securities either in certificated or uncertificated form, to enable book entry transfer of securities.

NSDL (National Securities DepositoryLimited)

  • Established: 1996
  • Headquarter: Mumbai
  • Chairman: Gagan Rai
  • It is the first & largest electronic securities depository of India.

PFRDA (Pension Fund Regulatory Development Authority)

  • Established: 23 August 2003
  • Headquarter: New Delhi
  • Chairman: Supratim Bandyopadhyay
  • Objective:
    • Promoting old age income security by establishing, developing and regulating pension funds and protects the interest of subscribers to scheme of pension funds.

EPFO (Employees Provident Fund Organisation)

  • Established: 4 March 1952
  • Head office: New Delhi
  • Head: Central Labour Minister
  • Objective:
    • Administrates provident fund scheme, pension scheme and Insurance Scheme.

BCSBI (Banking Codes and Standards Board of India)

  • Established: 18 Feb 2006
  • Headquarter: Mumbai
  • Head: A.C. Mahajan
  • It is an independent banking industry Agency that protects consumers of banking services in India.

Regional Rural Banks (RRBs)

  • Established: October 2, 1975
  • Aim- Primarily serve the rural areas of India with basic banking and financial services.
  • Examples- Jharkhand Rajya Gramin Bank, Utkal Grameen Bank etc.

IDRBT (Institute for Development & Research in Banking Technology)

  • Established: 1996
  • Headquarter: Hyderabad
  • Director: A.S. Ramasastri
  • Objective:
    • It is a banking research institute with the aim of providing the operational services support in information technology to banks and Financial Institutions.

SHCIL (Stock Holding Corporation of India Ltd.)

  • Established-1986
  • Headquarter: Mumbai
  • Chairman: Ramesh NGS
  • Objective:
    • India's largest custodian and depository participant.
    • Maintaining an online trading portal with investors and traders and also looks after e-stamping systems around India.

NICL (National Insurance Company Limited)

  • Established: 1906
  • Headquarter: Kolkata
  • Head: Tajinder Mukherjee
  • Objective:
    • It is the oldest insurance company of India which deals in non-life insurance business.

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