Definition
The full form of IDBI is Industrial Development Bank of India. It is an Indian government-owned financial service institution, established in 1964 to cater to the credit needs of Indian industry. Now, it also functions as a commercial bank offering a variety of financial products and services.
Key Takeaways
- The Full Form of IDBI is Industrial Development Bank of India. This is a major public sector bank in India, operating under the ownership of the RBI (Reserve Bank of India).
- Established in 1964, IDBI provides a wide range of financial services, including corporate banking, retail banking, personal banking, MSME (Micro, Small & Medium Enterprises) finance, agricultural loans, treasury services, and more.
- Over the years, the IDBI has played a key role in India’s financial sector by providing credit and other financial services necessary for the industrial development of the country.
Importance
IDBI stands for Industrial Development Bank of India.
It is important in the finance sector as it is one of the leading public sector banks in India, specifically renowned for its contribution to the development of industries.
The significance of knowing this term does not just rest on its role in the banking industry, but it also showcases an understanding of India’s economic industrial development.
It’s a pioneer in financing large and medium scale industries, making it vital in the historical and present day economic advancements of India.
Understanding the full form of IDBI is essential for anyone interested or involved in banking and industrial sector finance, as it encapsulates not just a bank’s identity but its role in India’s economic growth as well.
Explanation
IDBI stands for the Industrial Development Bank of India. Established in 1964, it was primarily created to provide credit and other financial services for the growth and development of the nascent Indian industry.
It initially functioned as a subsidiary of the Reserve Bank of India and was later transferred to the Government of India in the 1976. Today, it stands among the public sector banks in India providing a myriad of financial products and services to the Indian populace.
The purpose of forming IDBI was to ensure sufficient financial support for industrial development in India, particularly in cases where normal banking institutions were unable or unwilling to risk the investment. It played a significant role to accelerate the nation’s industrial development by financing both public and private sector projects.
Offering financial assistance to industries for research and development, upgrading technology, and fostering entrepreneurship, IDBI nurtures the growth of Indian industry. Over time, IDBI has also expanded its scope to include consumer banking services, thereby providing a more comprehensive suite of financial solutions to its customer base.
Examples of Full Form of IDBI
The term “IDBI” stands for Industrial Development Bank of India. It is one of the leading public sector banks in India. Here are three real-world examples:
Loan Services: The IDBI provides various loans to individuals and corporates, such as home loans, car loans, education loans and corporate loans. For example, a business in India requiring funds for expansion can approach IDBI for a corporate loan.
Saving Accounts: The IDBI bank offers various types of savings accounts for different categories of customers. For instance, an individual living in Mumbai can open a savings account with the bank to deposit his paycheck, earn interest, and manage daily expenses.
Digital Services: IDBI offers a myriad of digital banking services like online banking, mobile banking, phone banking, and SMS banking. For example, a person living abroad but having a bank account with IDBI can use their internet banking facility for transactions.
FAQ: Full Form of IDBI
What is the full form of IDBI?
The full form of IDBI is Industrial Development Bank of India.
What is the function of IDBI?
The IDBI (Industrial Development Bank of India) is an Indian government-owned financial service company that primarily provides banking services for the growth of the Indian industry.
Is IDBI a nationalised bank?
Yes, IDBI is a nationalised bank. It was owned by the Government of India which took over the ownership from Reserve Bank of India in 1976.
When was IDBI established?
IDBI was established in the year 1964 by an Act of Parliament as a wholly-owned subsidiary of the Reserve Bank of India.
Related Entrepreneurship Terms
Sure, here’s the HTML-formatted list:
- Industrial Development Bank of India (IDBI)
- Public Sector Bank (PSB)
- Development Financial Institution (DFI)
- Reserve Bank of India (RBI)
- Banking Regulation Act (BR Act)
Sources for More Information
- IDBI Bank Homepage – The official website of IDBI (Industrial Development Bank of India) is a reliable source for any information related to the IDBI bank.
- Reserve Bank of India (RBI) – The RBI is India’s central banking institution and oversees the financial operations of all banks, including IDBI Bank.
- Investopedia – Investopedia is a leading source of financial content on the web, offering trusted, comprehensive and educational information.
- Bloomberg – Bloomberg is a global leader in business and financial data and provides news pertaining to IDBI and other banks.
