Image 01




Investors Guide
How to start an Industry in Assam
Advantage Assam
Industrial Map of Assam
Investment Facilitation
Finance & Banking
Taxation System
Legal & Judiciary System
Industry and Business Related Laws
Intellectual Property Rights
Finance & Banking

India has a financial system that is regulated by independent regulators in the sectors of banking, insurance, capital markets, competition and various services sectors. In a number of sectors the Government plays the role of regulator. Ministry of Finance, Government of India looks after financial sector in India. Finance Ministry every year presents annual budget on February 28 in the Parliament. The annual budget proposes changes in taxes, changes in government policy in almost all the sectors and budgetary and other allocations for all the Ministries of Government of India. The annual budget is passed by the Parliament after debate and takes the shape of law.

Reserve Bank of India established in 1935 is the Central bank. RBI is regulator for financial and banking system, formulates monetary policy and prescribes exchange control norms. The Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934 authorize the RBI to regulate the banking sector in India.

India has commercial banks, co-operative banks and regional rural banks. The commercial banking sector comprises of public sector banks, private banks and foreign banks. The public sector banks comprise the State Bank of India and its seven associate banks and nineteen other banks owned by the government and account for almost three fourth of the banking sector. The Government of India has majority shares in these public sector banks.

India has a two-tier structure of financial institutions with thirteen all India financial institutions and forty-six institutions at the state level. All India financial institutions comprise term-lending institutions, specialized institutions and investment institutions, including in insurance. State level institutions comprise of State Financial Institutions and State Industrial Development Corporations providing project finance, equipment leasing, corporate loans, short-term loans and bill discounting facilities to corporate.

In Assam, apart from lending’s from the public sector banks there are other institutions for financing and lending. Assam Financial Corporation, a premier term lending institution of the North East, has been providing credit and other financial services to Micro, Small and Medium Enterprises (MSME).

The Corporation offers liberal credit of term loan and working capital term loan to a maximum limit of Rs.150.00 lakhs per projects including consortium finance by way of joint financing with SIDBI/Commercial Banks for viable large size projects.

To accelerate the business activity and rapid industrial growth of the region, the Corporation has planned for more than Rs.20,000 lakhs as sanction and disbursement targets for the next three years.

Thrust Area For Financing by A.F.C


Food Processing and Agro based Industries including.
Mineral Based Industry
Hospitality Industry/Tourist Resorts
Information Technology/IT related activities/Services
Medical Scheme/ Nursing Homes/Medical Equipments
Infrastructure Equipments
Bamboo based Industry
Export oriented activities
Commercial Complexes
Use of Bio-resources through emerging Bio-technology
The Corporation ensures to provide best and efficient service delivery to its customers.

North Eastern Development Finance Corporation Ltd. (NEDFi)
was incorporated under the Companies Act, 1956, on August 9, 1995 with its registered office at Guwahati, Assam, for the development of industries, infrastructure, animal husbandry, agri-horticulture plantation, medicinal plantation, sericulture plantation, aquaculture, poultry and dairy in the North Eastern states of India. NEDFi is the premier financial and development institution of the North East of India. The main objects to be pursued by NEDFi as per its Memorandum of Association are:

To carry on and transact the business of providing credit and other facilities for promotion, expansion and modernization of industrial enterprises and infrastructure projects in the North Eastern Region of India, also carry on and transact business of providing credit and other facilities for promotion of agri-horticulture plantation, medicinal plantation, sericulture plantation, aquaculture, poultry, dairy and animal husbandry development in order to initiate large involvement of rural population in the economic upsurge of the society and faster economic growth of different parts of the North Eastern region.

NEDFi has been promoted by All India Financial Institutions - Industrial Development Bank of India, ICICI Ltd., Industrial Finance Corporation of India, Small Industries Development Bank of India, Insurance Companies - Life Insurance Corporation of India, General Insurance Corporation and its subsidiaries, Investment Company - Unit Trust of India and Bank - State Bank of India. After the creation of DONER, NEDFi has come under the administrative control of this Ministry.

Almost all the nationalized commercial Banks, financial institutions and insurance companies have their Regional/Zonal offices at Guwahati. Many multi-national Banks like Standard Chartered and national level Banks like IDBI, HDFC, and ICICI are present in the State. EXIM Bank, the premier foreign trade Bank also operates in Guwahati.

Insurance Sector in India has been traditionally dominated by state owned Life Insurance Corporation and General Insurance Corporation and its four subsidiaries. Government of India has now allowed Foreign Direct Investment (FDI) in insurance sector up to 26%. Since then, a number of new joint venture private companies have entered into life and general insurance sectors and their share in the insurance market in rising. Insurance Development and Regulatory Authority (IRDA) is the regulatory authority in the insurance sector under the Insurance Development and Regulatory Authority Act, 1999.

RBI also regulates foreign exchange under the Foreign Exchange Management Act (FERA). India has liberalized its foreign exchange controls. Rupee is freely convertible on current account. Rupee is also almost fully convertible on capital account for non-residents. Profits earned, dividends and proceeds out of the sale of investments are fully repatriable for FDI. There are restrictions on capital account for resident Indians for incomes earned in India.

Securities & Exchange Board of India (SEBI) established under the Securities and Exchange board of India Act, 1992 is the regulatory authority for capital markets in India. India has 23 recognized stock exchanges that operate under government approved rules, by-laws and regulations. These exchanges constitute an organized market for securities issued by the central and state governments, public sector companies and public limited companies. The Mumbai Stock Exchange and National Stock Exchange are the premier stock exchanges. Under the process of de-mutualization, these stock exchanges have been converted into companies now, in which brokers only hold minority share holding. In addition to the SEBI Act, the Securities Contracts (Regulation) Act, 1956 and the Companies Act, 1956 regulates the stock markets.

Useful links









Site Last Updated on : January 22, 2017