Banking Federations and Associations in India

BANKING FEDERATIONS AND ASSOCIATIONS IN INDIA

Indian Institute of Banking and Finance:

• In 1928, Indian Institute of Banking and Finance (IBBF) established under paragraph 25 of Indian Company Act, 1913, which is known as the Indian Institute of Bankers (IBI), a professional body of banks, financial institutions and their employees in India.
• The organization has more than 700 members and financial institutions as a member of the organization and recruiting 300,000 employees as separate members, IIBF is working with the mission to develop its largest organization in the world and to develop professional and capable banks. Primary education, training, examinations, consultancy/ counselling and payment through professional development programs ".

Indian Banks Association:

On 26th September, 1946, the Indian Bank Association (IBA) was formed with 22 members. IBA has 166 members on December 31, 2011.

The members comprise of –

1. Public Sector Banks
2. Private Sector Banks
3. Foreign Banks having offices in India and
4. Urban Co-operative Banks.

Institute for Development and Research in Banking Technology:

• The Institute of Development and Research for Banking Technology (IDRBT) was established by the Reserve Bank of India. In the first phase of reform in the Indian financial sector, there is a need to set up higher education institutions, which will provide operational service support in information technology to banks and financial institutions.
• In the year’s 1984 and 1989, the founding of the establishment of computer technology in Indian banking sector The Rangarajan Committee was established on the basis of two reports. Both reports properly recommend computerization of banking activities at different levels and offer proper architecture.
• Bank Management under the Indian Banks' Association (IBA) fund signed an agreement with the Employees Unions of the Bank in 1993. This agreement is a great success for developing bank's communications networks and introducing computerized applications.
• The emergency management requirements of the leading management of training, research and development substantial work has been done activities in the banking area in the following two years. Based on technology, financial institutions and banks started setting up training centers and colleges.
• However, a feeling has been felt for the Apps Level Institute, which will be a brain trust for banking and financial services in Indian banking and financial sectors.
• In 1994, the Reserve Bank constituted a committee to "develop technology development of payment systems". The committee recommends various payment applications, which can be fulfilled with the development of a reliable communication network and up gradation of appropriate technology.
• For the purpose of research and development the committee also advised to set up an information technology institute implement the technology in the country's banking and financial sectors.
• Recommended by the Committee, Founded by the Reserve Bank of India, the founder of Banking Technology (IDRBT) Development and Research Institute was established in 1996 as the Banking Technology in Development and Research for Autonomous Center.

Asset Reconstruction Company India Limited (ARCIL):

• The origin of the resource reconstruction business in India was the main objective of its Privatization Act, 2002. There was no substitute for the previous banks and Financial Institutions of the Securities Act, 2002, but it was very difficult to adjust their security interests during the court process
• There was no provision in the law for the use of hypothesis, although it was a logical reason for the main security interests run by banks and financial institutions in India.
• On June 21, 2002, under, the Parliament in December 2002 and the Securities Act, 2002, it was in this backdrop that the securities and reconstruction financial resources and the application of the Securities Rule Ordinance passed.

Securitization Act is basically available for the following –

1. NPL handover at the Resource Reconstruction Agency (ARC), which can take measures for the recovery of scheduled settlement under Securities Act 2002.
2. Apply security interest to the secured lender and
3. A legal framework for asset protection.

• This empowerment encouraged three big players of the Indian banking system, such as ICICI Bank Limited (ICICI), State Bank of India (SBI), and IDBI Bank Limited (IDBI) to get together for the establishment of the first ARC. Punjab National Bank (PNB) became a shareholder of 10% in October 2004. Among other shareholders, mainly the private sector banks are formed.
• On February 11, 2002, ARCIL was incorporated as a public limited company.
• On May 7, 2003, it got the certificate of starting business.
• In pursuance of the Securities Administration Act, 2002, Section 3 of the Reserve Bank of India (RBI) has issued a certificate of registration on 29th August, 2003 and under the powers conferred by the Securitization Act 2002.
• ARCIL is a "financial institution" and in the meaning of Section 2 (h) (ia) of debt recovery due to the Bank and Financial Institutions Act, 1993 ("DRT Act").
• After the acquisition of ARCIL, Indian Bank and Financial Institutions, the country's first ARC to start the business of NPL. As the first ARC, this industry played a leading role in determining the quality of industry in India.