A subsidiary bank, or a subsidiary company, is a bank which is owned or controlled by any other bank or company. The subsidiary company is called the daughter company, and the company holding control over the other is known as the Parent company. i.e., the entire paid-up capital is contributed by the Parent Company.
1)National Housing Bank (NHB)
National Housing Bank was set up on July 9, 1988 under the National Housing Bank Act, 1987 as a wholly-owned subsidiary of the Reserve Bank to act as an apex level institution for housing.
Authorised Capital: ₹1,450 crore
Owned: Fully owned by Government of India (100%)
Headquarters: New Delhi
NHB RESIDEX– It is India’s first official housing price index, was an initiative of the National Housing Bank (NHB), undertaken at the behest of the Government of India, Ministry of Finance.
2. Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL)
The Reserve Bank established BRBNMPL in February 1995 as a wholly-owned subsidiary to augment the production of bank notes in India and to enable bridging of the gap between supply and demand for bank notes in the country.
Headquarters: Bengaluru
The company manages 2 Presses one at Mysore in Karnataka and the other at Salboni in West Bengal.
3. National Bank for Agriculture and Rural Development (NABARD)
National Bank of Agriculture and Rural Development (NABARD) is one of the subsidiaries where the majority stake is held by the Reserve Bank. NABARD is an apex Development Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts.
4. Deposit Insurance and Credit Guarantee Corporation (DICGC)
Authorised Capital : Rs 50 Crore.
Headquarters: Mumbai
With a view to integrating the functions of deposit insurance and credit guarantee, the Deposit Insurance Corporation and Credit Guarantee Corporation of India were merged and the present Deposit Insurance andCredit Guarantee Corporation (DICGC) came into existence on July 15, 1978. Deposit Insurance and Credit Guarantee Corporation (DICGC), established under the DICGC Act 1961, is one of the wholly owned subsidiaries of theReserve Bank. The DICGC insures all deposits (such as savings, fixed, current,and recurring deposits) with eligible banks except the following:
(i) Deposits of foreign Governments;
(ii) Deposits of Central/State Governments;
(iii) Inter-bank deposits;
(iv) Deposits of the State Land Development Banks with the State cooperative bank;
(v) Any amount due on account of of any deposit received outside India;
(vi) Any amount, which has been specifically exempted by the corporation with the previous approval of Reserve Bank of India. Every eligible bank depositor is insured upto a maximum of Rs.2,00,000(Rupees Two Lakh) for both principal and interest amount held by him.
0 Comments