Business Environment, 1st Edition by Pearson

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Part VII: Financial Systems

An active role in the fi eld of industrial fi nance is yet another

noteworthy feature of Indian central banking. In the absence of a

suffi ciently broad domestic capital market, there was need for

adapting and enlarging the institutional structure to meet the medium-

and long-term credit requirements of the industrial sector. It was in

this context that the Reserve Bank of India took the initiative in

setting up statutory corporations at the all India and regional levels to

function as specialized fi nancial agencies for providing medium- and

long-term credit. Some such institutions are the Industrial Finance

Corporation of India, The Refi nance Corporation for Industry

Private Limited and 17 State Financial ...