IDFC gets banking license from RBI and become 2nd financier [ Current Affairs ]
About IDFC: IDFC stands for Infrastructure Development Financing Company which is a leading finance company in India. It provides end to end finance services and project implementation services. Vinod Rai is an independent director of IDFC.
About RBI: RBI stands for Reserve Bank of India, which is India’s central banking institution. It controls the financial policy of the Indian rupee. It started its operations on 1 April 1935 during the British Rule. It signed agreement with the requirements of the Reserve Bank of India Act, 1934.
Business activities of IDFC:
- It started their business activities on June 9, 1997.
- In the year 1998, it registered their business with the Reserve Bank of India (RBI) as a Non-Banking Financial Company (NBFC).
- In the year 1999, it was reported as Public Financial Institution.
- In the year 2000, the company was registered with the Security Exchange Board of India (SEBI) as a merchant banker and as an underwriter.
- On April 2, 2014: RBI grants in-principle approval to IDFC to set up banks. Now, RBI grants Banking License to IDFC, by this grant IDFC becomes 2nd financier and enter in the banking sector.
Other banks grants from RBI:
- Yes Bank got banking license in 2004 from RBI.
- IDFC and Microfinance Company Bandhan Financial Services Pvt Ltd were granted preliminary bank permits by RBI in April 2014.
- Bandhan got Banking license from RBI in June 2015 and plans to start its operations from August.
- IDFC plans to start operations from 1st October.
- IDFC will start its operations with 20 branches and with initial loan book of 55,000 crore rupees.
- Published on: July 29, 2015