Specialised Banks

Introduction

Specialised banks are financial institutions that concentrate primarily on financing specialised economic and social endeavours. Small and cottage enterprises financing may be available for specialised activities. Financing the rural asset-poor and landless, among other things. India consists of many specialist banks that focus on the needs of entrepreneurs and give comprehensive support for the establishment of businesses in specific areas of activity, such as manufacturing. Consequently, they are referred to as specialised banks because they specialise in a certain field or activity.

Specialised Bank 

Most specialised banks share certain traits, which are as follows:

• Manage a specific type of customer base
• Do not rely on the financial resources of individuals’ deposits for your financial needs.
• Depending on the available capital and the number of bonds issued
• Work on sector-specific development is now underway.
• Put the policies of the state into effect.
• Work should be organised in a certain sector.
• Participate in the growth of the sector’s development policies by submitting proposals.

There are some banks that are able to meet the needs of their customers and give comprehensive support for the establishment of businesses in specialised fields of activity. EXIM Bank, SIDBI, and NABARD are only a few instances of such financial institutions. Consequently, they are referred to as specialised banks because they specialise in a certain field or activity.

Types of Specialised Banks

1. The Export-Import Bank of India (EXIM Bank) 

The Export-Import Bank of India is a subsidiary of the National Bank for Agricultural and Rural Development (EXIM Bank). EXIM is an example of a specialised bank in India. EXIM Bank is the central bank of India which controls the various transactions of big institutions. The Indian government regulates its work. EXIM banks provide all types of banking utilities for both exporters and importers. It also provides relevant info about the risk and opportunities circulating in the market.

The following are the EXIM Bank’s primary responsibilities:

• Manage a specific type of customer base

• Do not rely on the financial resources of individuals’ deposits for your financial needs.
• Depending on the available capital and the number of bonds issued
• Work on sector-specific development is now underway.
• Put the policies of the state into effect.
• Work should be organised in a certain sector.
• Participate in the growth of the sector’s development policies by submitting proposals.

2. The National Bank for Agricultural and Rural Development (National Bank for Agricultural and Rural Development)

The National Bank for Agricultural and Rural Development is an example of a specialised bank. The National Bank for Agriculture and Rural Development or NABARD. These banks provide loans and credits to various organisations to invest in the development of India. The primary goal of this bank is to facilitate rural development and rural prosperity in the country. It gives high funds for agricultural development and provides financial support to the farmers.

Its most important roles are as follows:

• To facilitate agricultural development is the major aim of the National Bank for Agricultural and Rural Development. 
• It also helps in the monitoring of various agricultural operations like harvesting expenses and so on. 
• It provides loans to the farmers for purchasing the seeds and performing other agricultural activities. 
• It also provides training in  the rural areas, for explaining the financial strategies to farmers and illiterate individuals.

3. The Small Industries Development Bank of India (SIDBI) 

The Small Industries Development Bank of India (SIDBI) performs the following functions:

• Starts the process of adopting new technology, exchanging old technology, transferring and upgrading existing units, and modernising them.
• SIDBI invests in favourable equity-type loans, term loans, working capital in rupees and foreign currencies, venture capital support, and other types of resource support for banks and other financial institutions.
• The SIDBI, in collaboration with commercial banks, ensures that SSI receives credit for both term loans and working capital on a timely basis.
• By partnering with other organisations, SIDBI improves the marketing capacity of SSIs’ products in both domestic and international markets.
• SIDBI directly discounts and rediscounts bills with the goal of promoting bill culture and assisting SSI units in realising the funds from the sale of capital goods, equipment, and components, among other things.
• SIDBI encourages the development of employment-oriented industries, particularly in semi-urban areas, in order to create jobs and slow the flow of people from rural to urban areas.

Conclusion

In conclusion, despite all odds, the country and the banking sector hope to see that specialised banks improve their performance in lending agricultural credit in order to boost agricultural production, achieve food self-sufficiency, empower women entrepreneurs, create jobs, and alleviate poverty. To accomplish all of these goals, they must restructure the organisation, acquire competent and qualified personnel, boost funding, diversify marketing of loanable products, and strengthen autonomy in managing day-to-day operations. But most importantly, they must ensure that all of their operations are transparent and accountable.