SSC
The headquarters of IDBI (now IDBI Bank) is located in:
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Answer: Option A — Mumbai
Detailed Solution
IDBI Bank (formerly the Industrial Development Bank of India) has its headquarters at IDBI Tower, Cuffe Parade, Mumbai.
About IDBI:
- The Industrial Development Bank of India was set up on 1 July 1964 under the IDBI Act, 1964, as a wholly owned subsidiary of the Reserve Bank of India.
- It was set up to provide long-term finance to industries and to coordinate the activities of other financial institutions involved in industrial development.
- In 1976, its ownership was transferred from the RBI to the Government of India.
It was the principal development financial institution (DFI) for industry for many decades, and it helped set up institutions such as the Small Industries Development Bank of India (SIDBI, 1990), the the National Stock Exchange (NSE) and the Exim Bank.
In 2004, it was converted into a commercial bank, "IDBI Bank Limited", under the IDBI (Transfer of Undertaking and Repeal) Act, 2003.
In January 2019, the Life Insurance Corporation of India (LIC) acquired a majority (51 per cent) stake in IDBI Bank. Since then, the RBI has classified it as a private sector bank.
The Government of India and LIC have been working on selling a large part of their combined stake (strategic disinvestment).
About development financial institutions (DFIs):
They provide long-term finance for industry, agriculture and infrastructure.
Other DFIs include: Industrial Finance Corporation of India (IFCI, 1948, India's first DFI), ICICI (1955, later a commercial bank), NABARD (1982), EXIM Bank (1982), SIDBI (1990), National Housing Bank (1988), and the National Bank for Financing Infrastructure and Development (NaBFID, 2021).
Headquarters of major financial institutions in Mumbai:
- Reserve Bank of India, SEBI, State Bank of India, NABARD, EXIM Bank, LIC, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
- Mumbai is called the "Financial Capital of India".
Why not the other options?
- ✗New Delhi has the headquarters of the National Housing Bank and IFCI.
- ✗Kolkata has the headquarters of UCO Bank and Bandhan Bank.
- ✗Chennai has the headquarters of Indian Bank and Indian Overseas Bank.
Quick tip
Remember: IDBI = Mumbai (set up 1964 as an RBI subsidiary; transferred to the government 1976; became IDBI Bank 2004; LIC majority owner since 2019); IFCI = 1948 (first DFI); SIDBI = Lucknow.
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Money, Banking & RBI — Preparation
This question tests your understanding of Money, Banking & RBI, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.
This topic covers money and its functions, the banking system in India, the Reserve Bank of India and monetary policy, policy tools such as the repo rate, reverse repo rate, CRR and SLR, bank nationalisation, types of banks, and payment systems such as NEFT, RTGS and UPI. Banking exams test this topic in depth. Questions often ask when the RBI was set up (1935, on the recommendation of the Hilton Young Commission), when it was nationalised (1949), what each policy rate means, and when major banks were nationalised (14 banks in 1969 and 6 in 1980). Current policy rates change often, so check the latest RBI announcements. Practise the money, banking and RBI questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.