Financial institution

1. FINANCIAL INSTITUTION
PRESENTED BY : VIVEKANANDAN
FROM : TYBAF
BANKING & FINANCE BATCH -1

2. MEANING OF FINANCIAL INSTITUTION
In finance and economics, a financial institution
is an institution that provides financial services
for its clients or members. One of the most
important financial services provided by a
financial institution is acting as a financial
intermediary. Most financial institutions are
regulated by the government.

3. FINANCIAL INSTITUTION EXPLAINED
FINANCIAL
INSTITUTION
OTHERS
NON-
INTERMEDIAR
Y
INTERMEDIAR
Y
NON-
BANKING
BANKING
REGULATARY

4. FINANCIAL REGULATARY IN INDIA
 RESERVE BANK OF INDIA (RBI)
 SECURITY EXCHANGE BOARD OF INDIA (SEBI)
 CENTRAL BOARD OF DIRECT TAX (CBDT)
 CENTRAL BOARD OF EXCISE & CUSTOMS

5. CLASSIFICATION OF INTERMEDIARIES
 Unit Trust of India (UTI) – Mutual funds financing
 Securities Trading Corporation of India Ltd. (STCI)
 Industrial Development Bank of India (IDBI) – help to form new industry
 Industrial Reconstruction Bank of India (IRBI)
 Export - Import Bank of India (EXIM Bank) – help small & medium entp.
 Small Industries Development Bank of India (SIDBI)
 National Bank for Agriculture and Rural Development (NABARD)
 Life Insurance Corporation of India (LIC)
 General Insurance Corporation of India (GIC)
 National Housing Bank (NHB)

6. BANKING & NON-BANKING
 Banking institutions A bank is an institution that accepts
deposits of money from the public, which are repayable on
demand and withdraw able by cheques. The banking institutions
of India play a major role in the economy of the country.
 Example : State bank of india , Indian bank , cananra bank,
syndicate bank , Icici bank & HDFC bank
which all are regulated by RESERVE BANK OF INDIA (RBI)

7. NON-BANKING INSTITUTION
 Which is also know as NBFC – Non banking finance company
 A Non Banking Financial Company (NBFC) is a company registered
under the Companies Act, 1956 of India, engaged in the business
of loans and advances, acquisition of shares, stock, bonds hire-
purchase, insurance business or chit business
 The working and operations of NBFCs are regulated by the Reserve
Bank of India (RBI) within the framework of the Reserve Bank of
India and the directions issued by it.
 Example : Power Finance Corporation, Shriram Transport Finance ,
Muthoot Finance , IFCI-Industrial Finance Corporation of India.

8. MUTUAL FUNDS INSTITUTION
 The first introduction of a mutual fund in India occurred in
1963, when the Government of India launched Unit Trust of
India (UTI).
 UTI enjoyed a monopoly in the Indian mutual fund market
until 1987, when a host of other government-controlled
Indian financial companies established their own funds,
including State Bank of India, Canara Bank, and Punjab
National Bank.
 This market was made open to private players in 1993

9. THE TOP FIVE MUTUAL FUND HOUSES

10. RECENT CHANGES & NEWS
 SEBI plans to set-up chair at NISM, other institutions
Markets regulator Sebi is considering setting up of 'Chair' at
National Institute of Securities Markets (NISM) and other
institutions, which will help in increasing awareness among
investors.
 ‘Sebi Chair' would provide research based policy inputs and help
in increasing academic interest and awareness about the
activities of the regulator. The Chair would undertake activities of
publishing research papers, policy notes, concept notes as well
as deliver lectures seminars.

11. ICICI Bank becomes first financial institution in India to sign MoU
with BRICS bank NDB
 Private sector lender ICICI Bank on Thursday became the first
financial institution in the country to tie up with the BRICS
Grouping-promoted (New Development Bank) (NDB) for a
partnership in bond issuances, co-financing, treasury
management and human resources.
 The agreement "creates a platform for sharing knowledge
and deepening network connectivity between NDB and ICICI
Bank," Kamath said, after signing the MoU along with ICICI
Bank chief Chanda Kochhar.

12. RBI, Punjab to adopt coordinated approach in weeding out fake financial
institutions
 The State Government is taking stringent measures to check fake
financial companies and economic offences cannot go unpunished.
Understanding the severity of financial frauds, the State Government
has already launched a massive campaign to weed out fraudulent
financial companies from the State
 RBI regional director Nirmal Chand said that RBI was taking
cognizance of the reported instances of cheating and frauds on the
part of fake finance institutions, unauthorised and high interest
charging money lenders not adhering to the guidelines of the RBI.