Page 17 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes Self Assessment

State whether the following statements are true or false:
6. It is India’s premier Development Financial Institution (DFI) and the 2nd largest
development bank of the world.

7. The concept of insuring deposits kept with banks received attention for the first time in
the year 1948 after the banking crises in Bengal.
8. Industrial Investment Bank of India Ltd. (IIBI) set up under the Companies Act, 1956, in
March 1997.
9. HDFC was incorporated in 1977 with the primary objective of meeting a social need - that
of promoting home ownership by providing long-term finance to households for their
housing needs.

1.5.10 Small Industries Development Bank of India (SIDBI)

It was established under SIDBI Act 1988 on 2.4.90, as subsidiary of IDBI taking over the latter’s
activities relating to SSI. The charter establishing it “The Small Industries Development Bank Of
India Act, 1989” envisaged SIDBI to be the principal financial institution for the promotion,
financing and development of industry in the small scale sector and to coordinate the functions
of the institutions engaged in the promotion and financing or developing industry in the small
scale sector and for matters connected therewith or incidental thereto.
The business domain of SIDBI consists of small scale industrial units (units in which the
investment in plant and machinery does not exceed Rs.10 million). In addition, SIDBI’s assistance
flows to the transport, health care, hotel and tourism sectors, infrastructure, etc, and also to
professional and self-employed persons setting up small-sized professional ventures.

Objectives

The preamble to the Small Industries Development Bank of India Act, 1989 defines the objective
of SIDBI as:

“The principal financial institution for the promotion, financing and development of industry
in the small scale sector and to coordinate the functions of the institutions engaged in the
promotion and financing or developing the industry in the small scale sector and for the matters
connected therewith or incidental thereto.”
In the SIDBI charter, four basic objectives are set out. They are:
1. Financing

2. Promotion
3. Development

4. Coordination
for orderly growth of industry in the small scale sector.

Notes Today LIC functions with 2048 fully computerized branch offices, 100 divisional
offices, 7 zonal offices and the corporate office.

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