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Arrange the following development finance institutions according to the order in which they were established: a. Industrial Development Bank of India, IDBI b. Industrial Investment Bank of India, IIBI c. Industrial Credit and Investment Corporation of India, ICICI d. Industrial Finance Corporation of India, IFCI

Arrange the following development finance institutions according to the order in which they were established: a. Industrial Development Bank of India, IDBI b. Industrial Investment Bank of India, IIBI c. Industrial Credit and Investment Corporation of India, ICICI d. Industrial Finance Corporation of India, IFCI Correct Answer d, c, a, b

The Correct Answer is d,c,a,b.

 Key Points

  • The Correct sequence is IFCI (1948),ICICI(1955),IDBI(1964),IIBI(1971).

 Important Points

IDBI

  • IDBI (Industrial Development Bank of India) Bank was established in 1964 by an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India (RBI).
  • It was established as a specialised development financial institution (DFI) – on the lines of NABARD, NHB and SIDBI – to provide credit and other financial facilities for the development of Indian industry.
  • In 1976, the ownership of IDBI was transferred to the Government of India.
  • In 2004 it was converted into a commercial bank when RBI incorporated IDBI as a 'scheduled bank' under the RBI Act, 1934.

 Industrial Investment Bank of India, IIBI

  • The Industrial Investment Bank of India was a government of India-owned financial investment institution that operated from its inception in 1971 until it was closed down by the Indian government in 2012.
  • It was a type of development bank with the aim of rehabilitating sick industrial companies in India.

ICICI

  • ICICI was formed in 1955 as a joint-venture of the World Bank, India's public-sector banks and public-sector insurance companies to provide project financing to Indian industry.
  • The bank was founded as the Industrial Credit and Investment Corporation of India Bank, before it changed its name to ICICI Bank.
  • The parent company was later merged with the bank.

IFCI

  • IFCI, previously Industrial Finance Corporation of India, is a Non-Banking Finance Company in the public sector.
  • Established in 1948 as a statutory corporation, IFCI is currently a company listed on BSE and NSE.
  • IFCI has seven subsidiaries and one associat

Related Questions

Which of the following statements are true in context of Development Financial Institutions (DFls) in few years after economic reforms in 1991?
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2. DFls no longer had access to low-cost long-term funds from the government or the central bank to finance large infrastructure projects. They were forced to borrow at higher rates from the market.
3. Banks began financing infrastructure projects, that was actually out of their mandate.
4. RBI established a committee under S. H. Khan for transition of DFIs into universal banks.
5. ICICI Bank and IDBI went for reverse merger in a quest to create Universal Banks.
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2. IFCI
3. SIDBI
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