Comment on the following: Financial service industry includes not only the traditional financial intermediaries but also the special purpose financial institutions.

Financial services industry encompasses a considerable range and depth of activities and includes not only the traditional financial intermediaries such as commercial banks, insurance companies, mutual funds and unit trusts, Assets Management Company etc. but also includes the special purpose financial institutions like development banks meant for specific sector i.e National Housing Bank, National Bank for Agriculture and Rural Development (NABARD), Small Industries Development Bank of India (SIDBI) etc. which provide financial services such as loan, accepting deposits, transferring funds etc. The purpose of creating special purpose financial institutions is to promote growth and development of a specific sector. For example, the purpose for incorporation of National Housing Bank was to provide an impetus to the growth and development of Housing sector in India. In essence, it involves every service industry dealing in transactions of money based services and products.