•   The full form of IDBI is the Industrial Development Bank of India.

•   IDBI was founded in 1964 as a wholly-owned subsidiary of RBI to provide financial and credit facilities for growth in the Indian industry.

•   Its headquarters is in Mumbai. Currently, it is one of India’s most prominent commercial banks offering financial strategies and personal banking.

• The main objective of IDBI is to establish a significant long-term financing institution.
• The collaboration with institutions operating in the banking sector for the expected growth of the industrial sector. The provision of administrative & technical support to the industries and the conduct of research & development (R & D) for the benefit of the Industrial Segment of India.

•   NABARD stands for National Bank for Agriculture and Rural Development. NABARD was established in the year 1982 under the Parliamentary Act- National Bank for Agriculture and Rural Development Act, 1981.

•   NABARD is a development bank primarily focusing on the rural sector and its development in India.

•   NABARD is an apex banking sector that provides finance for rural development and Agriculture.

•   It was established following the Reserve Bank of India Act of 1934.

•   It was nationalised in 1949 and since then fully owned by the Ministry of Finance.

•   RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system.

•   Until the Monetary Policy Committee was established in 2016, it also had full control over monetary policy in the country.

Functions of RBI

Monetary Authority:

• Formulates, implements and monitors the monetary policy.
• Objective: maintaining price stability while keeping in mind the objective of growth.

Regulator and supervisor of the financial system:

• Prescribes broad parameters of banking operations within which the country's banking and financial system functions.

• Objective: maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public.

Manager of Foreign Exchange

• Manages the Foreign Exchange Management Act, 1999.
• Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.

Issuer of currency:

• Issues, exchanges and destroys currency notes as well as puts into circulation coins minted by Government of India.
• Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.

Developmental role

• Performs a wide range of promotional functions to support national objectives.

Regulator and Supervisor of Payment and Settlement Systems:

• Introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.
• Objective: maintain public confidence in payment and settlement system.

•   RRBs were set up as government-sponsored, regional based rural lending institutions under Regional Rural Banks Act, 1976.

•   These are financial institutions which ensure adequate credit for agriculture and other rural sectors.

•   They were eshtablished on the basis of recommendations of Narasimhan Working Group.

•   Regional Rural Banks (RRBs) are government owned scheduled commercial banks of India that operate at regional level in different states of India.

•   These banks are under the ownership of Ministry of Finance , Government of India. They were created to serve rural areas with basic banking and financial services. However, RRBs also have urban branches.

•   The area of operation is limited to the area notified by the government of India covering, and it covers one or more districts in the State.

•   RRBs perform various functions such as providing banking facilities to rural and semi-urban areas, carrying out government operations like disbursement of wages of MGNREGA workers and distribution of pensions, providing para-banking facilities like locker facilities, debit and credit cards, mobile banking, internet banking, and UPI services.