Financial Institutions in India - ICICI

ICICI- Financial Institution

ICICI bank is a multinational banking and financial service company with its registered office in Vadodara and corporate office in Mumbai. It offers a wide range of banking activities. The key products and services that it offers to its customers are retail banking, corporate banking, investment banking, mortgage loans, private banking, wealth management, credit cards, and finance and insurance. It is one of the big four banks of India and has subsidiaries in the United Kingdom and Canada.


Types of Financial Assistance of ICICI

The corporation provides financial assistance to the public in the following ways:

  • Sale of industrial securities and underwriting of public issues

  • Direct subscription to securities

  • Securing loans in rupees payable for up to 15 years

  • Providing loans in foreign currency for the ease of payment of imported capital equipment and such technical services

  • Guarantee on payment for credits made by others

  • It provides financial services like leasing, asset credit, and installment sale.


Functions and Activities of ICICI Bank

The objective of ICICI bank is to meet the needs of the private industry for long and medium-term funds in the private sector. In general terms, the main functions are:

  • Assistance in the formation, development, and modernization of business in the non-public sector.

  • Provides medium and long-term loans in rupees and foreign currencies.

  • Underwrites new issues of debentures and shares.

  • Provides equipment finance

  • Promoting and supporting the expansion of markets and motivating private ownership of the industrial investment.


The Activities of the ICICI Bank Include the Following

  • A guaranteed loan from other private investment sources.

  • Provides finance in the form of long term or medium-term loans or equity participation

  • Provides funding for reinvestment by rapidly increasing investment.

  • Underwriting and sponsorships on new issues of shares and debentures. 


Corporate Social Responsibilities (CSR) Activities Of ICICI Bank

CSR activities form an integral part of the committee. The CSR policy sets out the rule that needs to be adhered to while implementing of any CSR policy or activity. Through CSR policy the objective of the bank is to set up proactive support to socio-economic development in India and also enable a larger number of people to benefit from its economic growth. 


Scope of CSR Policy

The policy ensures compliance with section 135 of the companies act, 2013, and includes the activities covered under Schedule VII to the act and the company’s rules (CSR policy ) 2014. Amended from time to time.


Government Structure

The CSR committee is the governing body that examines the scope of CSR and makes sure it complies with the policy of CSR. The CSR Committee comprises three or more directors of which one is an independent director. The bank has a CSR committee constituted in accordance with the provision of policy and Act.


Operating Framework

  • The CSR plan functions as prescribed by the CSR Committee under its supervision

  • Activities undertaken include projects implemented directly by the bank as well as contributions to the ICICI Foundation.

  • Implementation of identified activities shall be as per the organizational structure.

  • Funds are disbursed in accordance with the CSR committee.


Monitoring

  • The CSR committee reviews the progress of CSR activities twice a year. 

  • The Board Of Directors shall review the policy annually

  • The activities of the ICICI Foundation for inclusive growth shall be overseen by the governing council of the ICICI Foundation.


Disclosure

The bank includes the ICICI annual report by the year ending March 31. The disclosure as prescribed under the Companies Act, 2013 and rules as amended from time to time. All such information is displayed on the bank’s website. 


CSR Activities ICICI

ICICI CSR activities focus mainly on the below-mentioned areas.

  • Education- Education represents the critical area in any development sector. ICICI bank, both directly and through the ICICI foundation will work to improve the quality of education in government and municipal schools. The bank works on higher education for focused capacity building in specific disciplines.

  • Health Care- The health care challenge in India spans the whole country. It includes access to affordable health care for the poor section, availability of benefits, etc. The ICICI bank continues to focus on improving the delivery of healthcare facilities to vulnerable sections of society.

  • Skill Development and Sustainable Livelihood- The ICICI academy of skills has been set up to provide job-oriented skills training for youth. Seeing the success, the ICICI Foundation will continue to develop the ICICI Rural Self Employment Training Institutes.

  • Financial Inclusion- The ICICI bank continues to focus on expanding its reach through various distribution channels. The banking facility is also made accessible to low-income groups and rural populations.

  • Capacity Building- ICICI Foundation continues to focus on CSR initiatives, discussion, and leadership on critical challenges and growth of the economy and sector. The ICICI will continue to support initiatives in low-income groups and rural populations.

FAQs on Financial Institutions in India - ICICI

1. What are the Other Services Given to the Public by the ICICI Bank?

There are many services provided by the ICICI bank for ease of transaction. One such service includes ICICI mobile registration. Few proofs are required for the mobile registration process like driving license, PAN card, photo identity, etc. This creates ease in transactions and the individual does not have to visit the bank for small-to-go transactions. They are easily done through mobile banking and save a lot of time for the public.

2. What Do You Mean By Dormant and Inactive Bank Accounts?

Inactive Account: If an individual is not able to do transactions for more than 12 months through a saving account, the account will be classified as inactive.


Dormant Account: If an individual is not doing any transaction for more than 24 months from his/her savings account, the account is classified as dormant.


This is done to safeguard the interest, as it may be possible that an individual is not monitoring his/her account. The possible restrictions on these accounts are:

  1. Issuance of cheque book

  2. Renewal of ATM

  3. Transaction through ATM or internet banking.

3. What are the different types of financial institutions?

There are 9 types of financial institutions:

  • Central Banks- The financial bodies in charge of overseeing and managing all other banks are known as central banks. The country’s central bank is the Federal Reserve Bank of the United States, and it is in charge of monetary policy as well as financial institution supervision and regulation.

  • Retail and Commercial Banks- Retail banks used to cater to individual customers, whilst commercial banks dealt directly with enterprises. Currently, the majority of large banks offer both demographics deposit accounts, lending, and basic financial advising.

  • Internet Banks- Internet banks, which operate similarly to retail banks, are a newer addition to the financial institution industry. Internet banks provide the same products and services as traditional banks but through online platforms rather than physical facilities.

  • Credit Unions- Credit unions cater to a specific demographic, such as teachers or military personnel, depending on their field of membership. While the goods offered are similar to those given by retail banks, credit unions are owned by and operated for the benefit of their members.

  • Savings and Loan Associations- Savings and loan associations are financial institutions that are owned by their members and provide no more than 20% of total lending to businesses. Savings and loan associations are used by individual consumers for deposit accounts, personal loans, and mortgage financing.

  • Investment Banks and Companies- Investment banks do not accept deposits; instead, they assist people, corporations, and governments in raising funds by issuing securities. Investment businesses, often known as mutual fund companies, collect money from individual and institutional investors to give them access to the stock market.

  • Brokerage Firms- Individuals and institutions use brokerage services to acquire and sell securities from a pool of potential buyers. Customers can trade stocks, bonds, mutual funds, exchange-traded funds (ETFs), and other alternative investments through brokerage firms.

  • Insurance Companies- Insurance companies are financial institutions that assist individuals in transferring the risk of loss. Insurance companies safeguard individuals and businesses from financial loss due to death, disability, accidents, property damage, and other catastrophes.

  • Mortgage Companies- The financial institutions that originate or fund mortgage loans are known as mortgage companies. While the majority of mortgage businesses cater to individual consumers, some focus solely on commercial real estate finance.

4. What are the main goals of Financial Institutions in India – ICICI?

The main objective of Financial Institutions in India – ICICI are:

  • To give loans to a variety of private-sector industrial initiatives.

  • To encourage the development of a variety of new enterprises.

  • Assisting in the expansion and modernization of existing enterprises

  •  Providing technical and management assistance to help industries increase production.


ICICI provides financial aid in a variety of formats to help it achieve its objectives, including:

  • Offers long-term and medium-term loans in both rupees and foreign currencies.

  • ICICI is a shareholder in both equity and debentures.

  • Underwriting new offerings of company shares and debentures.

  • Provides a guarantee to equipment suppliers and international loaners.


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