Industrial Development Bank of India is the full form of IDBI. IDBI was established in 1964 as a 100% subsidiary of RBI to provide finance and credit facilities for the growth of Indian industry. Its headquarters are in Mumbai. It is currently one of India's leading commercial banks offering financial strategies and personal banking.
History of IDBI
- IDBI Group was established in 1964 as a 100% subsidiary of RBI under an Act of Parliament.
- Since 1992, IDBI has been offering indirect financial assistance through state-level financial endowments and loan refinancing to strengthen the government's financial sector.
Objective of IDBI
The main objective of IDBI is to build a major institution of long-term financing. Cooperation with institutions operating in the banking sector for the expected growth of the industrial sector. Providing administrative and technical support to industry and conducting research and development (R&D) for the benefit of India's industrial segment.
IDBI Products
Various products are offered by the IDBI, and a few are listed below.
- Saving accounts
- Debit and credit cards
- Lockers and FD
- Loans
- Agricultural loans, etc.
Importance of IDBI
The role of banks is very essential for the smooth running of economies. Banks are financial institutions that provide credit to an entity that needs money and also act as a custodian of the savings of people who have deposited their earned money in that bank. The essential role that a bank plays in an economy or society is to make capital available for long-term investment, which cannot be arranged by any individual. So it would not be wrong to say that banks are indispensable institutions for economic development.
In our country, banking history began with the establishment of three banks named Imperial Bank of India during the British era. It was later renamed as State Bank of India. Having earlier been infamous for only providing facilities to big businessmen and the British, after independence the Indian government took the responsibility of setting up more banks for the masses who really needed money. In later periods, it was found that there was an urgent need to provide capital sums for the establishment of larger enterprises and institutions.
With this view, the Government of India started the Development Finance Institution in 1964. A law was enacted under the name Industrial Development Bank of India (IDBI) Act, 1964. After 40 years in 2004, it was transformed into a fully functioning bank.
After years of service as a financial institution and later as a bank, it became the 10th largest bank in the world. It is a moment of pride for all of us that we have a bank that is still true to its mission and fulfilling the required line and interests of the country.