Q.Name any three special financial institutions and state their objectives.

Special financial institutions, also called development banks, were set up to supply long-term industrial finance that ordinary commercial banks and capital markets could not adequately provide. …

What these institutions are: The government has set up a number of financial institutions — established by both central and state governments — to provide finance to business organisations. They supply both owned capital and loan capital for long- and medium-term requirements and supplement traditional agencies like commercial banks. Because they aim to promote a country's industrial development, they are also called "development banks." Beyond money, they conduct market surveys and provide technical assistance and managerial services; they are especially suitable when large funds are needed for a long duration for expansion, reorganisation and modernisation.

Three special financial institutions and their objectives

• IFCI — Industrial Finance Corporation of India: to provide long- and medium-term finance to large industrial enterprises, particularly in sectors where ordinary bank credit or the capital market cannot meet the need.
• IDBI — Industrial Development Bank of India: to act as an apex (top-level) development bank that coordinates the activities of other financing institutions and directly finances and promotes industrial growth across the country. …