SIDBI
About
- Small Industries Development Bank of India (SIDBI) was set up in 1990 under an Act of Indian Parliament.
- It is mandated to serve as the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector.
- SIDBI facilitates and strengthens credit flow to MSMEs and addresses both financial and developmental gaps in the MSME eco-system.
- The Bank executes its mandate through-
- Indirect Lending: Based on multiplier effect/ larger reach in financing the MSME sector and is undertaken through Banks, SFBs, NBFCs, MFIs and New Age Fintechs.
- Direct Lending: Aims to fill the existing credit gaps in the MSME sector and is undertaken through demonstrative and innovative lending products.
- Fund of Funds: Boosts entrepreneurship culture by supporting emerging startups through the Fund of Funds channel.
- Promotion and Development: Promoting entrepreneurship and handholding budding entrepreneurs for holistic development of MSME sector through credit-plus initiatives.
- Facilitator: Playing a facilitator through roles like Nodal Agency for the MSME oriented schemes of the Government.
- The Shares of SIDBI are held by the Government of India and twenty-two other institutions / public sector banks / insurance companies owned or controlled by the Central Government.
Why in News?
- The Union Cabinet has approved an equity infusion of ₹5,000 crore into SIDBI, a move aimed at strengthening credit flow to MSMEs.