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What is SIDBI and its function?

SIDBI is Small Industries Development Bank of India. It was established on 2nd April 1990 through an act of Parliament. SIDBI was established for financing and promoting the Micro, Small and Medium Enterprise (MSME) sector. You can read about the SIDBI – Small Industries Development Bank of India & its Functions in the given link.

SIDBI focuses on addressing the developmental and financial gaps in the MSME ecosystem by strengthening and facilitating credit flow. SIDBI implements its mandate by acting as facilitator, through promotion and development, fund of funds, indirect lending and direct lending.

Further readings:

  1. Types of Non Banking Financial Institutions India
  2. World Bank Group – IBRD, IDA and 3 other institutions (UPSC Notes)

Related Links

National Bank for Agriculture and Rural Development (NABARD) [UPSC Notes]

Financial Inclusion – National Strategy for Financial Inclusion [UPSC GS-III]

Development Finance Institutions (DFI) – Objectives, Sector Specific DFI

Previous Years Economics Mains Questions for UPSC GS-3

License for Small Finance Banks by RBI

Bad Banks – Idea Proposed by Indian Banking Association (IBA) Due to COVID-19

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