Reforms in Financial system

Question 1

what is the time period for 3 major reforms

Answer 1

upto 1951 before planned economic development
1951-1980s - planned economic development
Post 1991 - LPG reforms and deregulation

Question 2

phase 1

Answer 2

low output
limited entrepreneurship as a result limited industrial development
semi organised securities market
absence of financial institutions for financing

Question 3

phase 2 government ownership nationalisation

RBI

Answer 3

1948

Question 4

phase 2 government ownership nationalisation

SBI

Answer 4

1956- imperial banks of india

Question 5

phase 2 government ownership nationalisation

LIC

Answer 5

245 insurance companies

1956

Question 6

phase 2 government ownership nationalisation

14 banks

Answer 6

1969

Question 7

phase 2 government ownership nationalisation

GIC

Answer 7

1972

nationalisation of general insurance companies

Question 8

phase 2 government ownership nationalisation

6 more commercial banks

Answer 8

1980

Question 9

phase 2 government ownership new institutions

DFIs

Answer 9

long term fund

Question 10

fortification of institutional structure

DFIs

Answer 10

directing capital into chosen areas
socio economic- small and medium enterprises;
backward regions

IFCI ICICI IDBI SIDBI
NIDC RCI IRCI

Question 11

IFCI

Answer 11

Industrial financial corporation of india

1948

gap filler

Question 12

NIDC

Answer 12

1954

both finance and entrepreneurship
degenerated to inly financial agency

Question 13

ICICI

Answer 13

1955
underwriting of capital issues
channeling foreign loans (WB, ADB) to private sector
responsibilities similar to other financial institutions

Question 14

RCI

Answer 14

refinance corporation of india

1958

merged with IDBI in 1964

Question 15

IDBI

Answer 15

1964

subsidiary of RBI
DELINKED from RBI in 1976

Question 16

IRCI

Answer 16

industrial reconstruction corporation of india

1971
rehabilitation of sick mills
renamed as IIBI in 1997

Question 17

SIDBI

Answer 17

1990
subsidiary of IDBI
foster development of small and medium enterprises

Question 18

LIC

Answer 18

1956
245 insurance companies
long term funds in the hands of LIC

Question 19

unit trust of india

Answer 19

1964
indirect holding of securities to people
mobilize savings for industrial development

Question 20

Commercial banks in phase 2

Answer 20

shroff committee 1953
underwriting
creation of certain institutions which helps in financing of small enterprises 
RCI - 1964
Agriculture refinance corporation- 1963
innovative / revolutionary phase
  social control
  nationalisation 
bank credit to priority sector

Question 21

social control

Answer 21

bank finance to more population

coverage of areas like agriculture and MSMEs

Question 22

nationalisation

Answer 22

1969 1980 1956 1948

priority sector lending
rationing of bank credit

Question 23

bank credit to priority sectors

Answer 23

1976 act of parliament
narsiman committee
m swaminathan father of rural banks
cooperative banks- area bound

professional plus area bound

Question 24

investors protection companies act

Answer 24

1956

Question 25

investors protection securities contracts regulations act

Answer 25

1956

Question 26

investors protection monopolies restrictive trade practices act

Answer 26

1970

Question 27

investors protection FERA

Answer 27

1973

foreign exchange regulation act

Question 28

problems in financial system

Answer 28

institutional structure
distributive mechanism
forms of financing
problems in small and medium enterprises