IDBI Full Form: What Does IDBI Stand For?
Do you want to know what is full form of IDBI is? Then, here you will come to know what Does IDBI stand for? Also all possible Full Form of IDBI.
IDBI Full Form
The term IDBI has many full forms, but out of which most relevant full form is-
IDBI Full Form is – Industrial Development Bank
On July 1, 1964, the Industrial Development Bank of India (IDBI) was set up. It continued to operate as a Reserve Bank of India affiliate until February 16, 1976. (Wholly-Owned Subsidiary). It was then accorded the status of an autonomous corporation by the government.
The main objective of setting up of Industrial Development Bank is to upgrade the level of industrialization of the nation and to take an active part in the establishment of projects related to industrial development. Along with the fulfillment of this basic objective, it becomes imperative for this type of bank to fulfill industrial finance as industrial development would not have been possible without proper arrangement of finance. Therefore, these two objectives can be said to be mutually complementary.
The two objectives for which the Industrial Development Bank was set up by the government are as follows:
(a) To coordinate the policies and functions of various financial institutions related to industrial finance as a central institution and to lead them all in the development of industrial finance in an organized manner so that each institution works in their respective fields. While doing so, it can be helpful in accomplishing the same purpose; And
(b) Encouraging the development of certain industries, such as chemical fertilizers, ferrous alloys, special steel, petro-chemicals, etc., with a view to removing the industrial imbalance of the country. These are industries in which the chances of immediate or substantial profitability are low, but the development of which is very important from the point of view of accelerating the economy.
The Industrial Development Bank (IDBI) was demerged from the organization of the Reserve Bank from 16 January 1976 (till then it was a subsidiary of the Reserve Bank). For this, the Industrial Development Bank Act was amended. In its reorganized form, the Development Bank was assigned a broader role like that of an Apex Institution in which it was entrusted with the important task of coordinating the work of various institutions working in the field of development banking.
Now the Board of Directors of this Development Bank can have 22 Directors (including Chairman). At present, it has 19 operators. The nomination of the Chairman is done by the Central Government and the nomination of the Vice-Chairman by the Reserve Bank. Its governing board also has representatives from other affiliated institutions.
The share of the Reserve Bank in the share capital of the State Financial Corporations and the Unit Trust (UTI) of India was transferred to the Development Bank (IDBI). Now the central government has also got the right to give directions to this bank.
Financial Resources of Industrial Development Bank of India:
Financial sources of Industrial Development Bank of India are:
(i) share capital,
(ii) Loans from the Government of India and the Reserve Bank,
(iii) Issuance of bonds and debentures.
(iv) loans in foreign currency,
(v) public deposit and
(vi) Grants and assistance.
In addition to the above-normal means of industrial development, there are some other sources from which it can take loans if needed. Notable in this category are the “National Industrial Credit (Long Term) Fund” set up by the Reserve Bank and the “Development Assistance Fund” set up by the Government of India.
Functions of Industrial Development Bank of India:
The scope of the bank has been broadened to include all those functions which are carried out by our existing finance corporations.
All work related to finance and development are included in their agenda, which are as follows:
(i) To Provide Loans:
The bank provides long-term loans to all types of industrial institutions. It also has the right to buy in debt instruments issued by such institutions.
(ii) To Give Guarantee of Loans:
This bank has the right to guarantee the deferred payments of loans and exports taken by industrial institutions in the capital market or from banks. The bank can also guarantee for the liabilities arising out of underwriting by banks and other financial institutions. This would create a favourable environment for federal underwriting or joint underwriting in India.
(iii) To Give Refinance Facilities:
The Industrial Development Bank provides refinance facilities for long-term loans ranging from 3 to 25 years by designated financial institutions and for loans ranging from 3 to 10 years given by scheduled banks and cooperative banks to industrial institutions. This period can also be more than 10 years.
What is IDBI Bank Full Form
Full Form of IDBI Bank is – Industrial Development Bank of India
What Does IDBI Stand For?
IDBI stands for – Industrial Development Bank of India
What is Full Forms of IDBI
Now, here is the complete Full-Form list of the term IDBI.
|Sr. No.||Term||Category||IDBI Full Form|
|1||IDBI||Internet Slang||I Don't Believe It|
|2||IDBI||Surgery||Index for Deep Burn Injuries|
|3||IDBI||Medical||Index of Deep Burn Injury|
|5||IDBI||Banking||Industrial Development Bank of India|
|6||IDBI||Uncategorized||Industrial Development Bank of Israel|
|9||IDBI||Business||Industrial Development Bond Insurance|
|10||IDBI||Stock Exchange||Industrial Development Bond Issuer|
|11||IDBI||Banking||Industrial Developmental Bank of India|
|12||IDBI||Business||Industry Development Bank of India|
|13||IDBI||Industrial||Interior Design Billings Index|
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