The Industrial Development Bank of India (‘IDBI’) was established as a subsidiary wholly owned by the Reserve Bank of India in the year 1964, to act as a principal financial institution for managing the activities of all institutions which deal with financing, promoting and development in India.

•   In 2003, RBI formed a committee to formulate policies and recommendations for the diversification of the activities of IDBI.

•   The Committee suggested that to coordinate the activities of development financing and banking, there is a need to bridge the gap between commercial banking and development banking.

•   Hence, The Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003  was enacted which made IDBI a commercial institution from a development finance institution.

•   IDBI acquired the status of a limited company, thereby making it IDBI Ltd.

•   LIC,EXIM Bank,SFC comes under its purview.

•   Life Insurance Corporation of India (LIC) is an Indian public sector life insurance company headquartered in Mumbai.

•   The Life Insurance Corporation of India was established on 1 September 1956, when the Parliament of India passed the Life Insurance of India Act, nationalizing the insurance industry in India.

•   Its objective was to spread life insurance more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

•   It was established in 1982 under the Export Import Bank of India act as a purveyor of export credit.

•   Its main objective is

o  providing financial assistance to exporters and importers, and

o  functioning as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country's international trade.

•   Small finance banks are a type of niche banks in India. Banks with a small finance bank (SFB) license can provide basic banking service of acceptance of deposits and lending.

•   The aim behind these is to provide financial inclusion to sections of the economy not being served by other banks, such as small business units, small and marginal farmers, micro and small industries and unorganised sector entities.

•   The small finance bank shall be registered as a public limited company under the Companies Act, 2013.

•   They will be given scheduled bank status once they commence their operations.

•   Unit Trust of India (UTI) was established in 1963 by an Act of Parliament.

•   It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India.

•   However in 1978 it was de-linked from the RBI and the IDBI took over the regulatory and administrative control.

•   Its main objective is to encourage and mobilize the savings of the community and canalize them into productive corporate investment.

•   Unit Trust of India provides to the investor a safe return of the investment whenever they require funds.