What is Small Industries Development Bank of India (SIDBI)?

About Small Industries Development Bank of India (SIDBI):

• It was set up on 2nd April, 1990, under an Act of the Indian Parliament.
• Purpose: To act as the principal financial institution for promotion, financing, and development of the Micro, Small and Medium Enterprise (MSME) sector, as well as for the co-ordination of functions of institutions engaged in similar activities.
• It is under the jurisdiction of the Ministry of Finance, GoI.
• It was incorporated in initially as a wholly owned subsidiary of the Industrial Development Bank of India (IDBI).
• Currently the shares of SIDBI are held by the Government of India (GoI) and 22 other institutions/PSBs/insurance companies owned or controlled by the Central Government.
• Headquarters: Lucknow, Uttar Pradesh
• SIDBI helps MSMEs in acquiring the funds they require to grow, market, develop, and commercialize their technologies and innovative products.
• The bank provides several schemes and also offers financial services and products to meet individual requirements of various businesses.
• Financial support to MSMEs is provided by way of
  • Indirect/refinance to banks/Financial Institutions for onward lending to MSMEs
  • Direct finance in niche are as like risk capital, sustainable finance, receivable financing, service sector financing, etc.
• SIDBI was made responsible for administering the Small Industries Development Fund and the National Equity Fund that were administered by IDBI before.
• In order to promote and develop the MSME sector, SIDBI adopts a ‘Credit Plus’ approach, under which, besides credit, SIDBI supports enterprise development, skill upgradation, marketing support, cluster development, technology modernization, etc.

Q1: What is the Industrial Development Bank of India (IDBI)?

Industrial Development Bank of India (IDBI) established under Industrial Development Bank of India Act, 1964, is the principal financial institution for providing credit and other facilities for developing industries and assisting development institutions. Till 1976, IDBI was a subsidiary bank of RBI. In 1976 it was separated from RBI and the ownership was transferred to the Government of India.

Source: Airbus Helicopters, SIDBI sign MoU for helicopter financing in India

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