What is the full form of SIDBI?
The full form of SIDBI is Small Industries Development Bank of India. SIDBI is an Indian development financial institution, with its headquarter is located in Lucknow and branches throughout the nation. Its aim is to provide the industry with refinancing opportunities and short-term financing and to function as the main financial institution in the MSME (Micro, Small and Medium Enterprises) industry.
The roles of organizations engaging in related activities are coordinated by SIDBI as well. It was created by an Act of Parliament on 2 April 1990. It has its head office in Lucknow. SIDBI works under the government of India’s Department of Financial Services.
Important pieces of information about SIDBI
- SIDBI is one of the four RBI governed and monitored by All India banking institutions.
- The other three are IEB (India Exim Bank), NABARD & NHB. But lately, by taking more than 51% of the share, NHB has come under government control.
- Via credit extensions & refinancing operations, they perform a statutory role in the financial sector and respond to the long-term financing requirements of the industrial sector.
- Via the SIDBI Foundation for Micro Credit, SIDBI is involved in the growth of microfinance banks and helps to expand microfinance via the MFI (Micro Finance Institution) pathway.
- Its support & growth program involves the promotion of rural companies and the development of the economy.
- It runs a refinancing program known as the Institutional Finance Program to increase and sustain the supply of capital to the MSE market.
- SIDBI provides Term Loan assistance to banks, small finance banks & non-banking financial companies under this scheme.
- In addition to refinancing activities, SIDBI also loans to MSMEs directly.