Financial Institutions in India

Financial Institutions	Establishment	Chairman/ Governor/ MD & CEO	Headquarter
RBI (Reserve Bank of India)	April 1, 1935	Shri. Shaktikanta Das (Governor)	Mumbai, Maharashtra
NABARD	July 12, 1982	Dr. G R Chintala (Chairman)	Mumbai, Maharashtra
SIDBI	April 2, 1990	Shri. Sivasubramanian Ramann (Chairman)	Lucknow, Uttar Pradesh
IRDAI	1999	Shri. Debasish Panda (Chairman)	Hyderabad, Telangana
EXIM Bank	January 1, 1982	Harsha Bhupendra Bangari (MD)	Mumbai, Maharashtra
NHB (National Housing Bank)	July 9, 1988	Shri Sarada Kumar Hota (MD)	New Delhi
ECGC	July 30, 1957	Shri M. Senthilnathan (Chairman and MD)	Mumbai, Maharashtra
SEBI	April 12, 1992	Ms. Madhabi Puri Buch (Chairperson)	Mumbai, Maharashtra
NPCI	December 2008	Mr. Dilip Asbe (MD and CEO)	Mumbai, Maharashtra
DICGC	July 15, 1978	Dr. Michael Debabrata Patra (Chairman)	Mumbai, Maharashtra
GIC (General Insurance Corporation)	November 22, 1972	Shri. Devesh Srivastava (Chairman and MD)	Mumbai, Maharashtra
LIC (Life Insurance Corporation of India)	September 1, 1956	Shri. Mangalam Ramasubramanian Kumar (Chairperson)	Mumbai, Maharashtra
AICIL	December 20, 2002	Shri.  Malay Kumar Poddar (Chairman and MD)	New Delhi, India
UTI (Unit Trust of India) Mutual Fund	February 1, 1964	Shri. Imtaiyazur Rahman  (Director & CEO)	Mumbai, Maharashtra
CDSL (Central Depository Services Limited)	February 1988	Shri. Nehal Vora (MD and CEO)	Mumbai, Maharashtra
NSDL (National Securities Depository Limited)	November 8, 1996	Padmaja Chunduru (MD and CEO)	Mumbai, Maharashtra
NIBM (National Institute of Bank Management)	1969	Shri. Shaktikanta Das  (Chairman)	Pune
NOFHC (Non-operating Financial Holding Company)	--	--	--
CERSAI	March 11, 2011	Shri. Pramod R Datar	New Delhi
CAPART	1986	Shri M. Venkaiah Naidu	New Delhi
PFRDA	August 23, 2003	Shri. Supratim Bandyopadhyay (Chairman)	New Delhi
EPFO (Employees Provident Fund Organisation)	March 4, 1952	Ms. Neelam Shammi Rao (CEO)	New Delhi
BCSBI (Banking Codes and Standards Board of India)	February 18, 2006	Shri. A.C. Mahajan  (Chairman)	Mumbai, Maharashtra
IDRBT	1996	Prof. D Janakiram (Director)	Hyderabad (India)
OECA (Export Credit Agency)	--	--	Mumbai, Maharashtra
SHCIL (Stock Holding Corporation of India Ltd.)	1986	Shri Ramesh NGS (Chairman)	Mumbai, Maharashtra
NICL (National Insurance Company Limited)	1906	Smt. Suchita Gupta (Chairman & MD)	Kolkata

RBI (Reserve Bank of India)

Established: The Reserve Bank of India Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank, which commenced operations on April 1, 1935.

Headquarter: Mumbai, Maharashtra.

Governor: Shaktikanta Das

Features of RBI:

• The RBI has regularized the issue of Bank notes (currency).
• The RBI is a lender of the last resort
• The reserve bank is the banker’s bank.
• The reserve bank is acting as a liaison between the government and commercial banks, financial corporations, and small savings boards.
• The RBI had played an important role in the development of institutional machinery of industrial finance, agricultural credit, and commercial banking.
• The reserve bank has ensured monetary stability in the country.

NABARD (National Bank for Agriculture and Rural Development)

Established: NABARD was established on 12th July 1982 on the recommendation of the CRAFICARD committee which is also known as the Sivaraman Committee.
Headquarter: Mumbai, Maharashtra.
Chairman: G R Chintala

• Biggest Rural Development Bank 
• Established on 12 July 1982 on the recommendation of Shivaraman committee to implement NABARD act 1981 
• AIM To uplift Rural India & rural non-farm sector. 
• NABARD acts as the regulator for cooperative banks &RRB's (Regional Rural Banks).

Primary Function:

• NABARD is the apex organization related to financing in the agricultural sector.
• It looks after matters concerned with policy, planning, and operations in rural areas in India. 
• Rural Infrastructure Development Fund (RIDF) is operated by NABARD.
• Provides refinance to lending institutions in rural areas. 
• Helps SHG (Self Help Group) & poor people in rural areas. 
• Runs program for agricultural & rural development. Recommends about licensing for RRBs, Co-operative banks to RBI

SIDBI (Small Industries Development Bank of India)

Established: Small Industries Development Bank of India (SIDBI in short) was established on 2nd April 1990 under the Small Industries Development Bank of India Act 1989 as a subsidiary of Industrial Development Bank of India.
Headquarter: Lucknow, Uttar Pradesh.
Chairman: Sivasubramanian Ramann

Primary Function:

• SIDBI refinances loans & advances provided by the existing lending institution to small-scale units. 
• SIDBI is an independent financial institution that provides help for the growth and development of micro, small and medium-scale enterprises (MSMEs).
• The second fund is a debt fund called SIDBI make is an India loan for enterprises (SMILE), which was announced in the Union budget (2015) in February. The fund will provide short-term loans and loans in the nature of quasi-equity of MSMEs to meet debt-to-equity norms and pursue growth.

IRDAI (Insurance Regulatory and Development Authority of India)

Established: IRDDAI was set up in the year 1999 by the Insurance Regulatory and Development Authority Act, 1999, which was passed by the Government of India.
Headquarter: Hyderabad, Telangana.
Chairman: Shri. Debasish Panda

• It is an autonomous apex statutory body to control & develops insurance agencies in India. IRDA is a national agency of GOI. 
• Passed by the Government of India under IRDA Act 1999 on the recommendation of Malhotra Committee. 
• It was incorporated as a statutory body in April 2000 
• IRDA act 1999, amended in 2002 to incorporate some emerging requirements 
• Objective To protect the interest of policyholders, to regulate, promote & ensure orderly growth of the insurance industry & for matters connected therewith or incidental thereto.

Primary Function: 

• The IRDAI is an autonomous, statutory agency tasked with regulating and promoting the insurance and re-insurance industries in India.

EXIM BANK (Export-Import Bank)

Established: EXIM Bank was established on January 1, 1982, for the purpose of financing, facilitating, and promoting foreign trade of India.
Headquarter: Mumbai, Maharashtra.
Managing Director: Harsha Bhupendra Bangari (MD)

• It was established in 1982 under the EXIM Bank of India Act 1981. 
• The bank lays special emphasis on the extension of Lines of Credit (LOCs) to overseas entities, national govt., regional financial institutions, and Commercial Banks. 
• The bank extends Buyers credit & suppliers credit to finance and promote the country's exports. To promote hi-tech exports from India, the bank has a lending program to finance the Research & Development (R & D) activities of export-oriented companies. 
• The authorized capital of the EXIM bank is Rs. 200 crores & the paid-up capital is Rs. 100 crore, wholly subscribed by the central government.

Primary Function:

• The Export-Import (EXIM) Bank of India is the principal financial institution in India for coordinating the working of institutions engaged in financing export and import trade.
• To tap domestic & foreign markets for resources. undertaking development & financial activities in the export sector (export & import).

NHB (National Housing Bank)

Established: The bank started its operations in July 1988. National Housing Bank was established under section 6 of the National Housing Bank Act (1987).
Headquarter: New Delhi
Key People: Shri Sarada Kumar Hota (MD)
Primary Function: 

• The National Housing Bank (NHB), the apex institution of housing finance in India, was set up as a wholly-owned subsidiary of the Reserve Bank of India.

ECGC (Export Credit Guarantee Corporation of India)

Established: ECGC Ltd. was established on 30 July 1957 to strengthen the export promotion by covering the risk of exporting on credit.
Headquarter: Mumbai, Maharashtra.
Chairman: Shri M. Senthilnathan

• It is a company wholly owned by the Government of India.
• ECGC provides insurance cover in respect of risks in export trade. ECGC Ltd. provides export credit insurance support to Indian export and is controlled by the Ministry of Commerce.
• ECGC Ltd. is the 7 largest credit insurer in the world in terms of the courage of national exports. 

Primary Function: 

• Export Credit Guarantee Corporation of India. This organization provides risk as well as insurance cover to the Indian exporters.

SEBI (Securities and Exchange Board of India)

Established: SEBI was first set up as a non-statutory body in April 1988, to regulate the working of the stock exchange. Later it was made an autonomous body on 12 April 1992 via SEBI Act 1992. 1st chairman of SEBI is Dr. S.A. Dave [12 April 1988-23 Aug 1990] 
Headquarter: Mumbai, Maharashtra.
Chairperson: Ms. Madhabi Puri Buch 

Objective: Protects the interest of investors and promotes the development of the stock exchange & regulates the activities of the stock market.  

As per the SEBI Regulations, the level of risk will be depicted by the color code boxes for Mutual Funds: 

• Blue: Principal at low risk 
• Yellow: Principal at medium risk 
• Brown: Principal at high risk. 
• This regulation came into effect on 1 July 2013 post which all the fund houses have labeled their funds can be the basis of the risk levels.

SEBI has launched a centralized web-based system to redress complaints by SCORES.

Primary Function:

• SEBI is the security market regulator in India.

NPCI (National Payments Corporation of India)

Headquarter: Mumbai
Non-Executive Chairman: Mr. Biswamohan Mahapatra
MD &CEO: Mr. Dilip Asbe

• NPCI was incorporated in Dec 2008 & the certificate of commencement of business was issued in April 2009. 
• NPCI was set up with the guidance & support of RBI& IBA (Indian Bank's Association). 
• NPCI has successfully completed the major project of developing a domestic card payment network-Rupay. 
• Presently, there are 10 crore promoter banks (SBI, PNB, BOB, BOI, Canara Bank, Union Bank of India, ICICI, HDFC, Citi Bank & HSBC). 
• NPCI is the umbrella organization for all retail payments systems in India. It introduced UPI, USSD, BHIM App, Bharat QR CODE, IMPS, National Financial Switch, CTS, BBPS, Rupay, NACH, AEPS. 

Features of NPCI Model

AEPS (Aadhar Enabled Payment System):

It is a new payment service offered by the NPCI to banks, financial institutions using the "Aadhar" number and online UIDAI authentication through their respective Business correspondent service centers. RBI has approved the pilot of AEPS.

IMPS (Immediate Payment System):

It is an over the mobile 24×7 interbank electronic payment mechanism that enables customers to use mobile instruments, internet banking & ATMs as channels for accessing their bank accounts and placing interbank fund transfers in a secured manner

Requisites:

1. MMID:

 Mobile Money Identifier is a7 digit code issued by banks to their customers. This number is mandatory for the beneficiary of funds if he wants to enter into a transaction

2. IFSC:

 Indian Financial System Code is a code that is a kind of identity for a specific bank.

NFS (National Financial Switch):

It was initiated by the Institute of Development & Research in Banking Technology and handed over to NPCI in 2009. NFS consists of a national switch to facilitate connectivity between banks switcher & their ATMs and an interbank payment gateway for authentication and routing the payment details of various e-commerce transactions. NFS is India's largest ATM connecting facility. The main purpose of NFS initially was to include rural and cooperative banks under its umbrella.

Rupay:

Rupay is the Indian domestic card payment network being set up by NPCI on the behalf of banks in India

DICGC (Deposit Insurance and Credit Guarantee Corporation)

Established: Under the DICGC act 1961 on 15 July 1978.
Subsidiary of RBI
Head office: Mumbai
Chairman: Dr. Michael Debabrata Patra
1. DICGC insures all bank deposits as saving, fixed, current, recurring, etc except the following deposits:

• Deposits of foreign Government. 
• Deposits of state/central government 
• Interbank Deposits 
• Deposit of state land development banks with state cooperative banks 
• Any amount due on the account and Any amount exempted by RBI approval deposit received outside India 

2. DICGC insures up to a maximum of Rs.500,000 for both principal & interest held by a customer as on date of scheme merger/reconstruction or cancellation of bank's license come into force (in case of multiple a/e still maximum insured amount is Rs. 5 lakh).

NOTE: All commercial banks, branches of foreign banks functioning in India, RRBs, local area bank co-operative banks are insured by DICGC.

GIC (General Insurance Corporation)

Founded: 22 Nov 1972 under the companies act 1956
Headquarter: Mumbai
Chairman: Devesh Srivastava
GIC of India (GICRe) is the sole reinsurance company in the Indian insurance market.
NOTE: GICRe becomes Ist reinsurer to open office at India's Ist International Financial Service Centre (IFSC) at Gujarat International Finance Tec-city (Gift city).

LIC (Life Insurance Corporation of India)

Headquarter: Mumbai
Chairperson: Shri. Mangalam Ramasubramanian Kumar

• The company was founded in 1956 under the Life Insurance of India act on 19 June 1956. LIC is an Indian state-owned insurance group and investment company headquarters in Mumbai. It is the largest insurance company in India. 
• LIC offers a variety of insurance products to its customers such as insurance plans, unit-linked plans, special plans, and group schemes
• LIC's slogan yogakshemam vahamyaha is in the Sanskrit language which translates in English as "your welfare is our responsibility". The slogan can be seen in the Logo, written in devanagri script. 

AICIL (Agriculture Insurance Company of India Limited)

Started from 1 April 2003
Founded: 20 Dec. 2002 under Indian companies act 1956
Headquarter: New Delhi, India
Key people: Sh, Malay Kumar Poddar (MD & Chairman)

Slogan: Sampann Bharat ki Pehchan, Beemit Phasal Khushaal Kisan. 

• AICIL was incorporated with an authorized capital of Rs. 1500 Cr. It offers yield-based and weather-based crop insurance programs in almost 500 districts of India. It covers almost 20 million farmers, making it the biggest crop insurer in the world in number of farmers served. AICIL commenced business from 1st April 2003.
•  AICIL is under the administrative control of the Ministry of Finance, GOI and under the operational supervision of the Ministry of Agriculture, GOI, IRDA, Hyderabad (India) is the regulatory body governing AICIL. 

UTI (Unit Trust of India) Mutual Fund

Industry: Mutual fund Founded 1964
Headquarter: Mumbai
Chairman: Shri. Imtaiyazur Rahman
Slogan: Haq, Ek Behtar Zindagi Ka.

• UTI is a financial organization in India, which was created by the UTI Act passed by the parliament of India on December 30, 1963, under the direction of Col. Akash Behl. 
• UTI has established with an initial capital of Rs. 5 crores, contributed by the RBI, LIC, SBI & its subsidiaries and scheduled banks & financial institutions 

CDSL (Central Depository Services Limited)

Founded: Feb 1998
Headquarter: Mumbai
Key people: Nehal Vora (MD & CEO)

• It is the second Indian Central Securities Depository 
• CDSL holds securities either in certificated or uncertificated form, to enable the book-entry transfer of securities. 
• CDSL is mainly promoted by Bombay Stock Exchange Ltd. (BSE) 

NSDL (National Securities Depository Limited)

Founded: 8 Nov 1996
Headquarter: Mumbai
Key People: Padmaja Chunduru (Chairman)

• It is the first & largest electronic securities depository in India. 
• It has established a national infrastructure using international standards that handles most of the securities held & settled in dematerialized form in the Indian capital market. 

NSDL is promoted by:

• IDBI (Industrial development bank of India Ltd.) – Largest development Bank of India. 
• UTI (Unit Trust of India) Largest mutual fund in India. 
• NSE (National Stock Exchange of India Ltd.) - Largest stock exchange in India. 

Some of the prominent banks in the country have taken a stake in NSDL

• NSDL also has a subsidiary company NSDL Database Management Ltd. 

NSDL e-Governance, Infrastructure Limited (NSDL e-Govt):

• NSDL e-Gov was originally set up as a Depository in 1995. e-Governance solutions have helped governments to identify and clear bottlenecks, promote transparency, reduce service delivery cost & efficiently 
• NSDL e-Governance Infrastructure Ltd. and the pension fund Regulatory and Development Authority (PFRDA) have entered into an agreement relating to setting up a Central Recordkeeping Agency (CRA) for the National Payment System (NPS). The NPS was introduced by Govt. of India for its new recruiters (except the Armed Forces) joining w.e.f. 1 Jan 2004. 

NIBM (National Institute of Bank Management)

Established: 1969
Headquarter: Pune
Governed by: Shri. Shaktikanta Das

NIBM is the RBI's fully owned subsidiary. It is an Indian Institution for research, training, and consultancy in banking and finance. The campus is self-contained, with residential and educational facilities.

It is registered as a society under the societies registration Act 1860. It was established in 1969 by the RBI in consultation with GOI as an autonomous "Apex institute" for the Indian Banking System. It is governed by a board, chaired by the Governor of the Reserve Bank of India. The institute generates more than 70% of its own operating budget the rest is funded by the banking industry.

•  Sh. K.L. Dhingra is the current director of the institute as on 2017 
• A major activity is the regular publication of the following two quarterly journals in English: 
• (i) Prajnan: Journal of social and management sciences: A leading refereed quarterly journal (launched in 1972) 
• (ii) Vinimaya: Present conceptual & practical viewpoints of both bankers & management educationists (Launched in 1979) 
• Member Banks: In addition to RBI, its associate member banks are the SBI and several of its subsidiaries, 19 National Banks & two foreign banks HSBC & Bank of America 

NOFHC (Non-operating Financial Holding Company)

• RBI-wide notification released on 7-4-2014 has informed the concerned financial institution that non-operative financial holding companies (NOFHCs) will be a separate category of NBFCs.
• Promoter groups will be permitted to set up a new bank only through a wholly-owned NOFHO which will hold the banks as well as all other financial services companies regulated by RBI or other financial sector regulators. 
• NOFHC will be registered as a non-deposit-taking non-banking financial company (NBFC) with the Department of Non-Banking Supervision (DNBS) of the Reserve Bank. 

CERSAI (Central Registry of Securitization Asset Reconstruction and Security Interest)

Founded: 11 March 2011
Headquarter: New Delhi
MD & CEO: Pramod R Datar
1st CEO & Registry R.V.Verma(Chairman of National Housing Bank)

• CERSAI is a central online mortgage registry of India which maintains all central registries of mortgages in India. It was primarily created to check mortgage frauds in which people took multiple loans on the same assets from different banks.
• It was formed under (SARFAESI ACT-2002) and register under section 25 of the companies act 1956.
• This is a government company with a shareholding of 51% by the central government and selected public sector banks & National Housing Bank are also shareholders.
• According to government directives, financial institutions must register a Banking and Economic Awareness mortgage within 30 days of its creation. 
• It aims to help potential buyers by providing them the proper history of the Asset and Lenders can assess data to check whether the same asset has been mortgaged with any other financial institution. 

CAPART (Council for Advancement of People's Action and Rural Technology)

Headquarters: New Delhi
It is set up to address specific problems relating to development in rural areas. CAPART is an autonomous body registered under the Societies Registration Act 1860 and is functioning under the aegis of the Ministry of Rural Development, GOI. Today, this agency is a major promoter of rural development in India.

Objectives of Capart:

• To encourage, promote, assist voluntary action for the implementation of projects intending enhancement of rural prosperity and to make efforts in rural development with the help of new technology inputs. 
• To promote, plan, undertake, develop maintain and support projects/schemes aimed at all-around development and create employment opportunities in rural areas. 
• CAPART deals with the public through Voluntary Organizations (VOs). It has been made mandatory for the VOs to register themselves on the National Portal (NGO-PS) and apply & track the status of their applications online 

PFRDA (Pension Fund Regulatory Development Authority)

Chairman: Supratim Bandyopadhyay

• It was established by GOI on 23 Aug 2003. The Government has an executive order, that mandates PFRDA to act as a regulator for the pension sector, PFRDA is authorized by the Ministry of Finance. 
• PFRDA promotes old age income security by establishing, developing, and regulating pension funds and protects the interest of subscribers to a scheme of pension funds. It is responsible for the appointment of various intermediate agencies such as CRA (Central record-keeping agency).

EPFO (Employees Provident Fund Organisation)

Head office: New Delhi
Head: Ms. Neelam Shammi Rao

• It is a statutory body of GOI under the "Ministry of Labour & Employment". It administrates a compulsory contributory provident fund scheme, pension scheme, and Insurance Scheme. 
• On 1 Oct 2014 PM "Narendra Modi" launched a universal account number of employees covered by EPFO to enable PF number portability. The Employees provident fund & miscellaneous provision Act, 1952 come into effect on 4 March 1952. The board is chaired by the Union Labour Minister of India (The chief executive of the EPFO). EPFO act is not applicable in Jammu & Kashmir. 

BCSBI (Banking Codes and Standards Board of India)

Chairman: Shri. A.C. Mahajan

Formed: 18 Feb 2006
Headquarter: Mumbai
Head: A.C. Mahajan
Members: 129
BCSBI is an independent banking industry Agency that protects consumers of banking services in India. It is an independent and autonomous body, registered as a separate society under the Societies Registration Act 1860 on Feb 18, 2006. SS Tarapore came up the idea to form a committee for the benefit of customers so that they can get better financial services.

IDRBT (Institute for Development & Research in Banking Technology)

Established: In 1996 by RBI
Headquarter: Hyderabad (India)
Head: D Janakiram
IDRBT is a banking research institute. RBI established IDRBT with the aim of providing the operational services support in information technology to banks and Financial Institutions

• IDRBT is the only institute in India that exclusively focuses on Banking Technology 
• IDRBT is also an academic institution that offers a range of academic & research programs, designed specifically to meet both the existing and emerging requirements of the Banking and Financial sector in India. 

OECA (Export Credit Agency)

Head office: Mumbai
An export credit agency or investment insurance agency is a private or quasi-governmental institution that acts as an intermediary between national governments and exporters to issue export financing. The financing can take the form of credits or credit insurance and guarantees or both, depending on the mandate the ECA has been given by its government.

• EXIM Bank, ECGC (Export Credit Guarantee Corporation of India) are two export credit agencies in India. 
• Export credit agency of CHINA has the highest capital. 

SHCIL (Stock Holding Corporation of India Ltd.)

Headquarter: Mumbai.
Established-1986

Key People: Shri Ramesh NGS (Chairman)

• It is India's largest custodian and depository participant. SHCIL is known for its online trading portal with investors and traders. It also looks after the e-stamping systems around India. 
• SHCIL has been appointed as a point of presence (POP) by PFRDA for National Pension System (NPS). It offers a full spectrum of NPS services and facilities to all citizens. SHCIL is the only Central Record Keeping Agency (CRA) appointed by the government of India. 

NICL (National Insurance Company Limited)

Headoffice: Kolkata
Founded: 1906
Head- Smt. Suchita Gupta
NICL is the oldest insurance company in India that deals in the non-life insurance business. It is 2nd largest non-life insurer as measured by gross direct written premiums (GDWP). NICL is wholly owned by govt. of India.