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banks (DICGC (deposit insurance & credit guarantee corporation,…
banks
DICGC
deposit insurance & credit guarantee corporation
statutory body - DICGC act, 1961
wholly owned subsidiary of RBI
provides max 5 lakh insurance cover to depositors of insured banks
limit decided/approved by central govt
types
developmental banks
provide long term credit
for capital intensive investments
spread over long period
yield low rates of return
eg: urban infra, mining, heavy industry, irrigation systems
at low and stable interest rates
aim - promote long term investments with considerable social benefits
hence supported by govts and international institutions through
tax incentives
mandating financial institutions to invest in them
aka term-lending institutions/dev finance institutions
they require long term finance sources to lend for long term
way - issuing long-dated securities in capital market
taken/subscribed by long term saving institutions like
pension funds
life insurance funds
post office deposits
successful in china