quasi regulatory institutions

8/11/2019 QUASI Regulatory INSTItutions

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NABARD,SIDBI,NHB

QUASI REGULATORY

INSTITUTIONS

ByHatim Painter 13MBA136Jackie


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INTRODUCTION

The committee of Mr. B. Sivaraman recommended theestablishment of NABARD, on November 28, 1979.

The parliament through the act 61 of 81 approved itssetting up in July 1982.

Set up with initial capital of Rs.100 crore, increased to

Rs.2,000 crore, fully subscribed by the government ofindia and the RBI.


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Apex bank for facilitating credit for promotion anddevelopment of agriculture, small-scale industries,cottage and village industries, handicrafts and

other rural crafts.

It also support to all other allied economic activitiesin rural areas and secure prosperity of rural areas.


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VISION

To facilitate sustained access to financial services forthe unreached poor in rural areas through variousmicro Finance innovations in a cost effective and

sustainable manner.

By the end of year 2015, we have planned to link

nearly 9.2 crore households which would ensurecoverage of more than 50% women through SHG(Self-Help Group) Bank linkage program.

Mission


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ROLE

Primary role:

Providing refinance to lending institutions in rural areas .

Bringing about or promoting institutional development .

Evaluating, monitoring and inspecting the client banks.


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NABARD also:

Acts as a coordinator in the operations of rural creditinstitutions.

Extends assistance to the government, the RBI and otherorganizations for rural development.

Training and research facilities for banks, cooperatives andorganizations working in the field of rural development .

Acts as regulator for cooperative banks and RRBs.


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NABARD also:

Helps the state governments in reaching theirtargets of providing assistance agriculture and ruraldevelopment .

Apex institution accredited with matters concerningpolicy, planning and operations in the field of credit foragriculture and activities in rural areas.

It prepares, rural credit plans for all districts in the countryon annual basis.

It promotes research in the fields of rural banking,agriculture and rural development.


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BANKING SERVICES

Production credit

Kisan Credit Cards

Farmers' Club Program

Tribal Development Fund

Microfinance Program

Village Development Program


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Farm Innovation and Promotion Fund

Rural Infrastructure Development Fund


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SMALL INDUSTRIES DEVELOPMENT

BANK OF INDIA (SIDBI)


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INTRODUCTION

The Government of India set up the SIDBI under aspecial Act of the Parliament in October 1989.

SIDBI commenced its operations from April 2, 1990with its head office in Lucknow.

SIDBI has been setup as a wholly owned subsidiaryof IDBI.

Its authorised capital is Rs.250 crore with an

enabling provision to increase it to Rs.1000 crore.

It is the apex institution which oversees, co-ordinates & further strengthens variousarrangements for providing financial and non-financial assistance to small-scale, tiny, andcottage industries.


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MISSION & VISION

Mission:To empower the Micro, Small and MediumEnterprises (MSME) sector with a view to contributingto the process of economic growth, employment

generation and balanced regional development

Vision:To emerge as a single window for meeting the

financial and developmental needs of the MSMEsector to make it strong, vibrant and globallycompetitive, to position SIDBI Brand as the preferredand customer - friendly institution and forenhancement of share - holder wealth and highestcorporate values through modern technologyplatform


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OBJECTIVES

Four basic objectives are set out in the SIDBICharter. They are: Financing Promotion Development Co-ordination

for orderly growth of industry in the small scalesector. The Charter has provided SIDBI considerable

flexibility in adopting appropriate operationalstrategies to meet these objectives.


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PRODUCTS & SERVICES

Direct finance. Bills finance Refinance

International finance Promotional & Development activities. Technology Upgradation & Modernisation

Fund Scheme {TDMF}

Venture Capital Fund Scheme Seed Money Schemes National Equity Fund Scheme


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DIRECT FINANCE

Since its beginning, SIDBI had beenproviding refinance to State Level FinanceCorporations / State Industrial DevelopmentCorporations / Banks etc., against their loans

granted to small scale units.

SIDBIs direct finance schemes are: Scheme for expansion / diversification of small

scale units. Scheme for specialised marketing agencies. Scheme for ancilaring / subcontract units. Scheme for existing Export Oriented Units(EOUs) to

enable them to acquire ISO 9000 seriescertification.


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BILLS FINANCE SCHEMES

Bills Finance Scheme involves provision of mediumand short-term finance for the benefit of the small-scale sector.

Bills Finance seeks to provide finance, to

manufacturers of indigenous machinery, capitalequipment, components sub-assemblies etc, basedon compliance to the various eligibility criteria,norms etc as applicable to the respective schemes.

To be eligible under the various bills schemes, oneof the parties to the transactions to the scheme has

to be an industrial unit in the small-scale sectorwithin the meaning of Section 2(h) of the SIDBI Act,1989.


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REFINANCE SCHEMES

Refinance scheme is introduced for catering to the need of fundsof Primary Lending Institutes {PLI} for financing small scale sector.

Under the scheme, SIDBI grants refinance against term loansgranted by the eligible PLIsto industrial concerns for setting upindustrial projects in the small scale sector as also for their

expansion / modernisation / diversification.

PLIs are SIDC, SFC. Banks like commercial banks, Co-operativeBanks, Regional Rural Banks

Schemes of re-finance assistence:

Scheme for SC-ST & physically handicraft persons Composite loan scheme Equipment refinance schemes. Schemes for small road transport operators. Special assistence to ex-servicemen.
http://www.sidbi.com/prilendinstitutions.asphttp://www.sidbi.com/prilendinstitutions.asphttp://www.sidbi.com/prilendinstitutions.asp


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INTERNATIONAL FINANCE

SCHEMES The main objective of the various International Finance

schemes is to enable small-scale industries to raisefinance at internationally competitive rates to fulfill theirexport commitments.

The financial assistance is being offered in US Dollars andEuro currencies. Assistance in Rupees is also provided tothe needy borrowers.

The international finance is available from pre-shipment

& post shipment credit.

Need based limit, depending on the normal trade termsand credit period given to overseas buyers by exportersnot exceeding 180 days.


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PROMOTIONAL AND

DEVELOPMENT ACTIVITIES

As an apex financial institution forpromotion, financing and development ofindustry in the small scale sector, SIDBImeets the varied developmental needs ofthe Indian SSI sector by its wide-rangingPromotional and Developmental (P&D)activities.

The activities are as follows: Enterpreneurship Development Programmes.

Management Development Programmes.

Technology Upgradation Programmes.


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TECHNOLOGY UPGRADATION &

MODERNISATION FUND SCHEME

{TDMF} This fund was setup in the year 1996 by the SIDBI

with an initial capital of 200 crores.

It was setup for the purpose of encouraging theexisting small scale industrial units to moderniseproduction facilities and adopt improved andupdated technology for strengthning exportcapabalities.

For availing benefits under this scheme the unithave to prepare an estimate for modernisation &submit it to SIDBI.

The sanction of funds is made depending upon theestimate submited.


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VENTURE CAPITAL FUND SCHEME

SIDBI is participating in the Venture capital fund setby public sector institutions as well as privatecompanies to the extent of Rs,50,00,000 of totalcapital of the fund required.

The fund should be didicated to financing smallindustry preferabally the most risky one.


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NATIONAL EQUITY FUND SCHEME

In order to provide equity type assistance, SIDBI isoperation a National Equity Fund Scheme.

The equity capital loan to the extent of 2.5lakh issanctioned to each project provided the profectqualities under this scheme.


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SEED MONEY SCHEMES

One of the constraints faced by Entrepreneurs isthe lack of own resources to promote theminimum promoter contribution.

Hence, SIDBI introduced seed money schemefor the benefit of entrepreneurs.

Seed money is available through DIC { DirectIndustry Centre } to those entrepreneur who aretechnically qualified but lack of own capital.


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NATIONAL HOUSING BANK


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INTRODUCTION

In terms of the National Housing Bank Act, 1987, National

Housing Bank is expected, in the public interest, toregulate the housing finance system of the country to its

advantage or to prevent the affairs of any housing

finance institution being conducted in a manner

detrimental to the interest of the depositors or in a

manner prejudicial to the interest of the housing financeinstitutions. For this, National Housing Bank has been

empowered to determine the policy and give directions

to the housing finance institutions and their auditors.


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OBJECTIVES

To promote effective housing finance system and tointegrate it with overall financial system.

To promote housing finance institutions.

To augment resources and channelize them forhousing.

To make housing credit more affordable.

To regulate the activities of housing financecompanies.

To augment supply of buildable land and buildingmaterials for housing.

To encourage public agencies in this field.


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REFINANCE ASSISTANCE

PLIs provide finance to individual borrowers, builders,

corporate houses etc for purchase/construct or repair/

upgradation of houses. The institutions which are eligible

to take refinance from NHB are

HFCs

Scheduled Banks

RRBs

MFIs

ACIs

ACHFSs

SCARDBs


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REFINANCE SCHEMES

Direct housing loans up to 15 laks disbursed by HFCsto individuals for constructing new houses.

Extension and renovation loans up to 5 laks.

Housing loans under PHIRA program. Other assistance by HFCs under Subsidy-Cum-Self

Finance schemes of Government.


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REVERSE MORTGAGE LOAN

RML is a loan that lets to convert a portion of equityin home into cash. It is available to senior citizens forsupplementing pension/income. It provides amonthly stream of income against mortgage oftheir home while remaining as an owner inpossession.

In India maximum tenure is 15-20 years. In othercountries there is no such time period.


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RURAL HOUSING FUND

RHF was introduced to support refinance operationin rural housing sector.


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DEPOSIT SCHEMES

1. NHB SUNIDHI Term Deposit Scheme.

2. NHB SUVRIDDHI (Tax Saving) Term Deposit Scheme.

3. Special Term Deposit Scheme for HFCs.


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ACTS & REGULATIONS

1. NHB Act, 1987

2. NHB General Regulation, 1988

3. NHB (Voluntary Deposits) Scheme, 1991

4. NHB (Recovery of Dues) General Regulation, 2002


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NEW INITIATIVES

1. Housing Micro Finance

2. Energy Efficient Housing

3. Home Loan Councelling

4. NHB Residex

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