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What is Development Bank?Functions of Development Banks

3 years ago
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by Anjali Yadav
What is Development Bank? Functions of Development Banks
What is Development Bank? Functions of Development Banks

What is Development Bank? Discuss the functions of Development Bank. 

Meaning and Definitions of Development Bank

Development banks are financial institutions which provide medium and long term finance. They encourage entrepreneurship organisational effectiveness and technical know-how. Various scholars have defined development banks as under –

According to Diamond William, “Development bank is an institution to promote and finance enterprises in the private sector.”

According to C. S. Vanket Rav, “The term development bank’ imbraces a variety for financial institutions which provide medium and long term finance to industry or agriculture and extend technical or managerial advice needed to formulate and improve projects.”

According to Boskey Shirley, “Development banks are institutions,. public or private, which have, as one of their principal functions, the making of medium or long term investments in industrial projects.”

Development banks are promoted and managed by the government or private groups.

Functions of Development Banks

Following are the functions of development banks –

  1. Development banks provide medium and long term finance to industries.
  2. They promote entrepreneurship and organisational effectiveness.
  3. Development banks provide advisory and entrepreneurial services.
  4. To promote and develop small-scale industries in India.
  5. To finance the development of the housing sector in India.
  6. To facilitate the development of large-scale industries in India.
  7. To help the development of agricultural sector and rural India.
  8. To enhance the foreign trade of India.
  9. To help to review (cure) sick industrial units.
  10. To encourage the development of Indian entrepreneurs.
  11. To promote economic activities in backward regions of the country.
  12. To contribute in the growth of capital markets.

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Anjali Yadav

इस वेब साईट में हम College Subjective Notes सामग्री को रोचक रूप में प्रकट करने की कोशिश कर रहे हैं | हमारा लक्ष्य उन छात्रों को प्रतियोगी परीक्षाओं की सभी किताबें उपलब्ध कराना है जो पैसे ना होने की वजह से इन पुस्तकों को खरीद नहीं पाते हैं और इस वजह से वे परीक्षा में असफल हो जाते हैं और अपने सपनों को पूरे नही कर पाते है, हम चाहते है कि वे सभी छात्र हमारे माध्यम से अपने सपनों को पूरा कर सकें। धन्यवाद..

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