Mariyam Fatima & Sanat Pandey, BALLB (HONS.), Bennett University
ABSTRACT
The development banks are the financial institution which provide medium- and long-term fund for the economic development project which ultimately aid in the economic growth of the country. Development banks helps in the promotion of industry, agriculture, and other key sectors with focus on the welfare of the people in large. Besides providing direct loans the development banksalso aid in the way of underwriting and contribution in issuing guarantees. Unlike the commercial banks the development Bank does not accept deposit from public. It derives source from capital inthe form of equity share and debentures, Internal accrual generated from profit and by Market linked borrowing from the Reserve Bank of India. The Development banks are specialized financial institution which perform multifunction of providing long term finance to entrepreneurs and performing promotional role for assisting economic development. In this research paper the author explicitly discusses about development banks, its structure, and types. Then further explain about the regulatory framework guiding the working of development Bank and about the lendingprocedure of development banks. Later the paper will discuss about the contemporary relevance in the light of the recent legislative development. It further discusses about the challenges and success of the development Bank and end with discussion on its role in modern economy development.
