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General Awareness > Financial Banking Institutions in India > Financial Institutions for Specific Areas
Financial Banking Institutions in India

Financial Institutions for Specific Areas

Indian economy is one of the largest economies in the world. To meet all the financial activities in India is not an easy task. That is why the government of India has decided to go with financial institutions for specific areas. These institutions focus on the specific areas so that they can be monitored and provide them the support. We are going to discuss a few financial institutions for specific areas based on the purpose they serve.

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Financial Institutions for Specific Areas

In India, there are specific financial institutions for insurance, export-import, currency exchange, housing and many more.

Financial Institutions for Specific Areas

Insurance Regulatory and Development Authority of India

IRDA as it’s commonly known as is an independent, statutory, an apex body that supervises and governs the insurance sector in India. It was formed as a part of the 2014 Act by the parliament of India. Finally, it was passed on the recommendation of the Malhotra committee headed by Mr. R.N. Malhotra.

Objectives of IRDA

  • To ensure the growth of the insurance sector in India.
  • Promoting the rights and interests of the policyholders.
  • To ensure that the settlements are settled speedily for the genuine claims and prevent the malpractices and frauds.
  • Bringing the orderly conduct and transparency for the financial markets dealing with the insurance.

Browse more Topics under Financial Banking Institutions In India

Learn more about Financial Institutions for Industries here in detail

Export-import bank of India (EXIM)

EXIM is a specialized bank which is wholly owned by the government of India. Thus, it promotes financing and facilitating foreign trade in India.

Some of the important functions of EXIM bank are

  • It provides the finance for joint ventures happening in the countries outside India.
  • Helps with the financing of imports and exports of goods and services in India as well as abroad.
  • Provides the administrative and technical help to the firms engaged in the import and export business.
  • Provides the advance information and business advice to the Indian exports with respect to multi-funded business projects abroad.

Securities and exchange board of India (SEBI)

SEBI is the designated body for investment and financial markets in India. It creates and enforces the regulation for financial markets in India. Thus, it plays a vital role in maintaining financial and investment markets efficiently and stable.

The headquarters for SEBI is located in Mumbai, Maharashtra. Thus, the primary objective of SEBI is to protect the interests of the investors and promotes the development of the stock exchange. It also regulates the activities of the stock market

SEBI’s main job is to observe whether the stock market follows the by-laws or not. Furthermore, they check for books of accounts of various financial intermediaries. So, they ask for returns from some of the recognized stock exchanges. According to SEBI, the risk in mutual funds is shown using three color boxes.

Thus, these color boxes are yellow, brown, and blue. Furthermore, the blue box represents a fund at low risk, yellow represents the principal at medium risk, and brown represents the fund at high risk.

Practice Questions on Financial Institutions for Specific Areas

Q. EXIM bank is the premier financial institution bank in India for exports. Which of the following areas of the bank they do not finance?

A. Line of credit

B. Film financing

C. Agro and SME finance

D. None of the above

Answer: D. None of the above

Q. What institution in India is considered as the apex organization for Industrial finance?

A. SIDBI

B. Industrial finance company

C. Industrial development bank of India

D. None of the above

Answer: C. Industrial development bank of India

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