Money and Banking (part – II)

Direct assistance is provided by way of underwriting of or direct subscription to industrial securities, soft loans, project loans etc. While indirect assistance is provided in the form of Refinance facilities to industrial concerns. In 2004, Reserve Bank of India incorporated IDBI as a 'scheduled bank' under the RBI Act, 1934.

IDBI was constituted under Industrial Development Bank of India Act, 1964 as a Development Financial Institution (DFI) and came into being on July 01, 1964. While ICICI was formed in 1955 to provide medium- term and long-term project financing to Indian businesses and Board of Industrial and Financial Reconstruction (BIFR) was set up in January, 1987.

Hence, option (c) is the correct answer.

Steel Authority of India (SAIL) is a steel manufacturing enterprise owned and operated by the Ministry of Steel, Government of India.

Facts about SAIL

• As of 31 March 2015, SAIL has 93,352 employees, as compared to 170,368 (as of 31 March 2002)
• The total requirement of its main raw material, iron ore, is met through its captive mines. To meet its growing requirement, capacities of existing iron ore mines are being expanded and new iron ore mines are being developed.
• SAIL produced 13.9 million tonnes of crude steel by operating at 103% of its installed capacity, which is an increase of 1% over the previous year. It also generated 710 MW of electricity during FY 2014-15.

SBI is now India's largest bank. It is a financial services firm that is a public sector bank with a global nature. SBI, based in Mumbai, is the world's 43rd largest bank. The bank is descended from the Bank of Calcutta, created in 1806, making it the Indian Subcontinent's oldest commercial bank.

In total, the bank was founded through the acquisitions and mergers of roughly twenty institutions over a while. State Bank of India, a State under Article 12, is governed by the government and Parliament of India and the local and other authorities mentioned in Article 12 of the Indian Constitution.

The State Bank acts as an agent for the Reserve Bank and fulfils the following tasks:

• It serves as the government's bank, collecting money and making payments on the government's behalf, as well as managing public debt.
• It serves as a bank for bankers. It accepts deposits from commercial banks and lends them. It also serves as a clearinghouse for commercial banks, rediscounting their bills of exchange and providing remittance services.
• It accepts the general public's payments and deposits.
• It offers loan facilities against qualified securities, including bills of exchange, goods, promissory notes, real estate or title papers, fully paid corporate shares, debentures, and so on.
• Corporate securities, government securities, treasury bills, and railroad securities are among the investments it makes with its surplus cash.