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The full form of IDBI is Industrial Development Bank of India. It was established in July 1964. It helpful for develop new institutions and financial support to the RBI. After 12 years (in 1976) it was delinked from RBI. It was converted into shares and sale under Government in July 1995. Now the IDBI play a vital role in the development of industries.

Roles of IDBI:

  • It co-ordinate other financial institutions.
  • It assists in development of other financial institutions.
  • The IDBI provide credit to developing industries.

Functions of IDBI:

  • To grant loans to IFCI (Industrial corporations of India), SFC (State financial corporation) and other financial institutions by the way of refinancing of loans granted which repay within 25 years.
  • It provides loans and advances to scheduled banks or state co-operative banks by way of refinancing of loans granted which are repaying within 15 years.
  • Provide loans to IFCI, SFC and state co-operative banks and industries for exports.
  • Give the discounts and rediscounts to industrial concerns.
  • The IDBI subscribe to shares or debentures of industrials.
  • It underwrite or to subscript to shares or debentures of industrials.
  • It is provide loans to industrial concerns.
  • It to guarantee deferred payment to industrial concern.
  • It provides consultancy or merchandised banking with in India or out side India.
  •  It guarantees loans raised by industrial concern in the market or from industries.
  • It provides perfect planning, promoting and developing industries in India.
  • It acts as trustee for holders of debentures or other securities.
  • It provides technical, legal, marketing and administrative assistants to any financial institutions or person for promotion in industries.
  •  It provides management to industries.

The IDBI works in effective way for development of industries in India. Provide economical support to develop new industries.

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