Write notes on Public financial institutions.

Public Financial Institutions (PFIs) Public Financial Institutions (PFIs) play a crucial role in the financial landscape by providing long-term finance for industrial and infrastructure development. Their definition is provided under the Companies Act, 2013. Definition under Companies Act, 2013: Section 2(72) of the Companies Act, 2013, defines 'Public Financial Institution' as: Life Insurance Corporation of India (LIC): Established under Section 3 of the Life Insurance Corporation Act, 1956. Infrastructure Development Finance Company Limited (IDFC): Referred to in clause (vi) of sub-section (1) of Section 4A of the Companies Act, 1956 (now repealed under Section 465 of the 2013 Act). Specified Company: Referred to in the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002. Notified Institutions (under previous Act): Institutions notified by the Central Government under sub-section (2) of Section 4A of the Companies Act, 1956 (now repealed under Section 465 of the 2013 Act). Other Notified Institutions: Such other institution as may be notified by the Central Government in consultation with the Reserve Bank of India (RBI). Conditions for Notification as PFI: However, no institution shall be so notified unless: It has been established or constituted by or under any Central or State Act; OR Not less than fifty-one percent of the paid-up share capital is held or controlled by the Central Government or by any State Government or Governments or partly by the Central Government and partly by one or more State Governments. Key Characteristics: Government Control/Establishment: PFIs are typically established by statute or have significant government ownership/control. Developmental Role: They often have a mandate to promote economic development by providing long-term finance, especially for sectors where commercial banks may be hesitant to lend. Regulatory Oversight: They are subject to specific regulatory frameworks and oversight by the government and RBI. In essence, PFIs are government-backed or government-controlled financial entities that play a strategic role in channeling funds for national development objectives.