What is financial institution: UPSC Daily Important Topic | 4 August 2022

What is financial institution

✓A financial institution is an umbrella term for a company dealing with financial and monetary transactions, including loans, deposits, and/or investments.

✓All India Financial Institutions (AIFIs) are regulated and supervised by the Reserve Bank of India.

Examples:

✓National Bank for Financing Infrastructure and Development (NaBFID) 

✓Export-Import Bank of India (EXIM Bank)

✓National Bank for Agriculture and Rural Development (NABARD)

✓National Housing Bank (NHB)

✓Small Industries Development Bank of India (SIDBI)