India has a well-knit structure of term financing institutions, popularly known as development banks at the national and state level meeting the vital long – term, financial and developmental needs of industry and agriculture in the country. Development in this sense implies a steady improvement of living standards achieved through increase in income improvement in social conditions and protection of the natural environment. It is a specialized financial institution which provides medium term and long term lending facilities. It is a multipurpose financial institution because besides providing financial help; it undertakes promotional activities also. Development banks provides financial assistance to both public and private institutions. Role of a development bank is of gap filler. All in all the development banks are today in a much stronger position in terms of financial and organizational strength to enable them to meet the emerging challenges that lie ahead than they were in the past. In this paper focused the nature and scope of development bank, promotion of new entrepreneur importance of development banks, what is the future of development banks present it.