ndian inan ial ar et 11.11
company’s activities, the name of RCTC sector banks, public insurance companies
was changed to IFCI Venture Capital and public mutual fund (i.e., UTI Mutual
Funds Ltd. (IFCI Venture) in February Fund Ltd.).
2000.
(iii) Investment Instituions (IIs)
In order to focus on Asset Management
Activities, IFCI Venture discontinued Three investment institutions also came up in the
Risk Capital and Technology Finance public sector, which are yet another kind of FIs,
Schemes in 2000-01 and continued i.e., the LIC (1956), the UTI (1964) and the GIC
managing VECAUS-III. In 2007, as (1971).
UTI had ceased to carry out its activities In the present time they are no more known as
and its assets vested with Specified DIIs (Domestic Investment Institutions) or DFIs
Undertaking of the Unit Trust of India (Domestic Financial Institutions). LIC is now
(SUUTI), the portfolio of VECAUS-III the public sector insurance company in the life
under management of IFCI Venture was segment, GIC was been converted into a public
transferred to SUUTI. sector re-insurance company in 2000, while UTI
(b) Tourism Finance Corporation of India was converted into a mutual fund company in
Ltd (TFCI), 1989: The Government of 2002. Now these investment institutions (IIs)
India had, on the recommendations of are no more like the past. LIC is now called an
the National Committee on Tourism ‘insurance company’, part of the Indian Insurance
(Yunus Committee) set up under the aegis Industry and is the lone public sector playing in
of the Planning Commission, decided the life insurance segment competing with the
in 1988, to promote a separate All India private life insurance companies. Similarly, the
Financial Institution for providing UTI is now part of the Indian Mutual Fund
financial assistance to tourism-related industry and the lone such firm in the public
activities/projects. In accordance with sector competing with other private sector mutual
the above decision, the IFCI Ltd. along funds. Similarly, the earstwhile four public sector
with other all-India financial/investment general insurance companies are part of India’s
institutions and some nationalised banks general insurance industry and competing with
promoted a Public Limited Company private companies in the area (they were Holding
under the name of “Tourism Finance Comapnies of the GIC—now these are owned by
Corporation of India Ltd. (TFCI)” the GoI directly and GIC only looks after its ‘re-
to function as a Specialised All-India insurance’ business). This is why we do not get the
Development Financial Institution to use of the term ‘IIs’ in recent times in any of the
cater to the financial needs of the tourism GoI official documents.
industry.
(iv) State Level Finance Institutions (SLFIs)
TFCI was incorporated as a Public
Limited Company in 1989 and became In the wake of states involvement in the industrial
operational with effect from 1989. development, the central government allowed the
TFCI was notified as a Public Financial states to set up their own financial institutions
Institution in January 1990. Its promoter, (after the states demanded so). In this process two
the IFCI, holds major share (41.6 per kinds of FIs came up:
cent) in it, while the rest of the shares (a) State Finance Corporations (SFCs): First
are with the ‘public’ (26 per cent), public came up in Punjab (1955) with other