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Describe the functions of IDBI?

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Functions of IDBI:

1. The functions of IDBI fall into two groups:

1. Assistance to other financial institutions; and –

2. Direct assistance to industrial concerns either on its own or in participation with other institutions.

2. The IDBI can provide refinance in respect of term loans to industrial concerns given by the IFC, the SFCs, other financial institutions notified by the Government, scheduled banks and state cooperative banks.

3. A special feature of the IDBI is the provision for the creation of a special fund known as the Development Assistance Fund. 

4. The fund is intended to provide assistance to industries which require heavy investments with low anticipated rate of return. 

5. Such industries may not be able to get assistance in the normal course. 

6. The financing of exports was also undertaken by the IDBI till the establishment of EXIM BANK in March, 1982

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