SEBI, NHB and IRDA - Banking awareness questions on current affairs

ANSWER: SEBI

Explanation:
SEBI regulates the Credit rating agencies in India.

ICRA Limited (ICRA) is an Indian independent and professional investment information and credit rating agency.

It was established in 1991, and was originally named Investment Information and Credit Rating Agency of India Limited (IICRA India).

It is one of the largest Indian rating company in term of customer base.

ICRA Limited
Founded : 1991
Headquarter : Gurgaon
Current Head : Naresh Takkar (CEO)

ANSWER: Industrial Finance Corporation of India

Explanation:
IFCI Ltd. was set up in 1948 as Industrial Finance Corporation of India, a Statutory Corporation, through `The Industrial Finance Corporation of India Act, 1948’ of Parliament to provide medium and long term finance to industry.

It was the first Development Financial Institution established by the Indian government after independence.

Until the establishment of ICICI in 1956, IFCI remained solely responsible for implementation of the government's industrial policy initiatives.

In 1993, it was reconstituted as a company to impart higher degree of operational flexibility and named as IFCI Ltd.

Functions :

The functions of the IFCI are as follows :

• The corporation grants loans and advances to industrial concerns.
• Granting of loans both in rupees and foreign currencies.
• The corporation underwrites the issue of stocks, bonds, shares etc.
• The corporation can grant loans only to public limited companies and co-operatives but not to private limited companies or partnership firms.
  
  IFCI Ltd
  
  Founded : 1948
  Current Head : Shri Malay Mukherjee (CEO)

ANSWER: 2004

Explanation:
Industrial Development Bank of India (IDBI) was constituted under Industrial Development Bank of India Act, 1964 as a Development Financial Institution and came into being as on July 01, 1964.

It continued to serve as a DFI for 40 years till the year 2004 when it was transformed into a Bank.

Subsequently, in September 2004, the Reserve Bank of India incorporated IDBI as a 'scheduled bank' under the RBI Act, 1934.

Consequently, IDBI, formally entered the portals of banking business as IDBI Ltd. from 1^st October 2004.

The commercial banking arm, IDBI BANK, was merged into IDBI in 2005.

In 2006, IDBI Bank acquired United Western Bank (headquartered at Satara).

IDBI - Industrial Development Bank of India

Founded : July 1, 1964
Headquarters : Mumbai, India
Current Head : Mr. Kishor Kharat (MD & CEO)

ANSWER: 1982

Explanation:
Export–Import Bank of India (EXIM) is the premier export finance institution in India, established in 1982 under Export-Import Bank of India Act 1981.

Organization Structure

Exim Bank is managed by a Board of Directors, which has representatives from the Government, Reserve Bank of India, Export Credit Guarantee Corporation of India, a financial institution, public sector banks, and the business community.

Functions

The Bank's functions are segmented into several operating groups -

• Corporate Banking Group
• Project Finance/Trade Finance Group
• Small and Medium Enterprise
• Export Services Group
• Export Marketing Services
• Support Services Group

EXIM - Export-Import Bank of India

Founded : 1982
Headquarter : Mumbai, India
Current Head : Yaduvendra Mathur (Chairman & MD)

ANSWER: Export Credit Guarantee Corporation

Explanation:
On 30 July 1957, the ECGC Limited was established with an objective to provide insurance cover in respect of risks in export trade.

It provides export credit insurance support to Indian exporters and is controlled by the Ministry of Commerce.

Government of India had initially set up Export Risks Insurance Corporation (ERIC) in July 1957.

It was transformed into Export Credit and Guarantee Corporation Limited (ECGC) in 1964 and to Export Credit Guarantee Corporation of India in 1983.

Functions of ECGC

• Provides a range of credit risk insurance covers to exporters against loss in export of goods and services as well.
• Offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them.
• Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan and advances.

ECGC - Export Credit Guarantee Corporation

Founded : July 30, 1957
Headquarters : Mumbai, Maharashtra
Current Head : Mrs. Geetha Muralidhar (Chairman & MD)

ANSWER: Government of India, NABARD and RBI

Explanation:
FIF

The objectives of the FIF shall be to support developmental and promotional activities with a view to securing greater financial inclusion, particularly among weaker sections, low income groups and in backward regions/hitherto unbanked areas.

FITF

The objectives of FITF shall be to enhance investment in Information Communication Technology (ICT) aimed at promoting financial inclusion, stimulate the transfer of research and technology in financial inclusion, increase the technological absorption capacity of financial service providers/users and encourage an environment of innovation and cooperation among stakeholders.

ANSWER: NABARD

Explanation:
NABARD stands for National Bank for Agriculture and Rural Development.

NABARD is set up as an apex Development Bank by the Government of India with a mandate for facilitating credit flow for promotion and development of agriculture, cottage and village industries.

NABARD is active in developing financial inclusion policy and is a member of the Alliance for Financial Inclusion.

In November 2016, Government has allowed NABARD to disburse Rs. 21,000 crore to cash-starved farmers, helping them sow winter crops like wheat ahead of the sowing season

National Bank for Agriculture & Rural Development (NABARD)

Founded : 12 July 1982
Headquarter : Mumbai, Maharashtra
Current Head : Dr. Harsh Kumar Bhanwala (Chairman)

ANSWER: Its head office is in Hyderabad.

Explanation:
The headquarters of SIDBi is in Lucknow.

SIDBI is the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for co-ordination of the functions of the institutions engaged in similar activities.

SIDBI has also floated several other entities for related activities.

• Credit Guarantee Fund Trust for Micro and Small Enterprises provides guarantees to banks for collateral-free loans extended to SME.
• SIDBI Venture Capital Ltd. is a venture capital company focused at SME.
• SME Rating Agency of India Ltd. (SMERA) provides composite ratings to SME.
• SARC - India SME Asset Reconstruction Company in 2009, as specialized entities for NPA resolution for SME.

SIDBI

Founded : April 2, 1990
Headquarter : Lucknow, Uttar Pradesh
Current Head : Dr. Kshtarapati Shivaji (Feb 27 2015 - Present)

ANSWER: Enterprises

Explanation:
MSME stands for Micro, Small and Medium Enterprises.

The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under:

Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below:

1. A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh;
2. A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore; and
3. A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.

Enterprises engaged in providing or rendering of services and whose investment in equipment and other items not directly related to the service rendered as:

1. A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh;
2. A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore; and
3. A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.

ANSWER: Securities and Exchange Board of India (SEBI)

Explanation:
As per the guidelines of the Securities and Exchange Board of India (SEBI), the Government picked up the entire SBI shares held by the RBI at a price of Rs. 1,130.35 a share.

SEBI is the regulatory authority for the securities market in India.

Powers -

For the discharge of its functions efficiently, SEBI has been vested with the following powers:

• to approve by - laws of stock exchanges.
• to require the stock exchange to amend their by – laws.
• inspect the books of accounts and call for periodical returns from recognized stock exchanges.
• inspect the books of accounts of financial intermediaries.
• compel certain companies to list their shares in one or more stock exchanges.
• registration of brokers.