Important Banking Notes on LIC, EXIM & NABARD (Non Banking Financial Companies), IBPS Clerk, PO and SBI Clerk, PO Important Bullet Points on Life Insurance Corporation, Export and Import Bank of India & National Bank for agriculture and Rural Development
Life Insurance Corporation of India
· LIC was established in 1956 as wholly owned corporation of the Government of India
· LIC came into being from 1.9.1956
· To spread life insurance across the country, particularly in the rural areas and to the socially and economically backward classes.
· Besides insurance business, LIC in pursuance of Government of India guidelines invests a major portion of its funds in central and state government securities and other approved securities including special deposits with Government of India.
· Extends assistance to develop infrastructure facilities like housing, rural electrification, water supply and sewerage and provides financial assistance to the corporate sector by way of term loans, underwriting off and direct subscription to shares and debentures.
· It also provides resource support to financial institutions through subscription to their shares/bonds and by way of term loans.
· UTI ‐ the largest mutual fund organization in India was set up in 1964 by an act of parliament.
· Established to fulfill the objectives of mobilizing of retail savings, investing them in the capital market and passing on the benefits accrued from the acquisition, holding, management and disposal of securities to the small investors.
· General Insurance Corporation of India was formed and registered on January, 1973 under the insurance act 1938 in accordance with the provisions of the General Insurance Business (Nationalization) act, 1972
· The New India Assurance Company Limited; The United India Insurance Company Limited, The Oriental Insurance Company Limited and National Insurance Company Limited are government owned insurance companies doing general insurance business
· Need based insurance companies to meet the diverse and emerging needs of various segments of society and provides financial assistance to industrial projects by way of term loans, short term loans and direct subscription to shares/debentures of new and existing industrial enterprise.
National Bank for agriculture and Rural Development
· NABARD was established in 1982 under an act of parliament
· It is the apex development bank for promotion and development bank for promotion and development of agriculture, small scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas
· It serves as an apex financing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas
· Takes measures towards institution building for improving absorptive capacity of the credit delivery system, including monitoring, formulation of rehabilitation schemes, restricting of credit institutions, training of personnel etc.
· Coordinates the rural financing activities of all institutions engaged in developmental work at the field level and maintains liaison with Government of India, state governments, RBI and other national level institutions concerned with policy formulation
Export and Import Bank of India
· Export and Import Bank of India ‐ EXIM bank was established in 1982
· Public sector financial institution created by an act of Parliament vide ‐ the Export and Import Bank of India act 1981.
· Principal financial institution for – financing, facilitating and promoting India’s foreign trade
· They provide Indian exporters with investment loans, export product development loans, loans for export marketing, pre shipment credit, suppliers credit for exports or projects and advisory services.
· Equity finance available for acquiring of setting up companies abroad for manufacturing, marketing, trading etc.
· It offers buyers credit and lines of credit to foreign governments and banks
· It has facilities to provide advance information and business advisory services to Indian exporters in respect of multilaterally funded projects overseas.
· It offers advisory and information services to exporters and sponsors
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