Which of the following are the functions of SIDBI?
1. SIDBI aims to facilitate and strengthen credit flow to MSMEs and address both financial and developmental gaps in the MSME ecosystem across the country.
2. It aims to provide all type of loan in the agriculture sector of India.
Select the correct answer by using the codes given below.
The correct answer is 1 only
Key Points
- Small Industries Development Bank of India (SIDBI)
- SIDBI is the principal development financial institution for the promotion, financing and development of the Micro, Small and Medium Enterprises (MSME) sector in India.
- It was established on April 2, 1990, through an Act of Parliament (thus, it is a statutory body).
- It is headquartered in Lucknow, Uttar Pradesh.
- SIDBI aims to facilitate and strengthen credit flow to MSMEs and address both financial and developmental gaps in the MSME eco-system across the country. Hence statement 1 is correct.
- It coordinates functions of institutions engaged in similar activities.
- Currently, the shares of SIDBI are held by Central Government and 29 other institutions including public sector banks (PSBs), insurance companies owned and controlled by Central Government.
- Functions of SIDBI:
- It aims at emerging as a single-window to meet the developmental and financial needs of MSMEs in order to make them globally competitive, strong, vibrant and to protect the institution as a customer-friendly financial body.
- It also aims at enhancing the wealth of shareholders through the modern technology platform.
- It is involved in the promotion and development of the MSME sector.
- It is the principal institution for the development, promotion and financing of the MSME sector and for the coordination of functions of the institutions engaged in similar activities.
- SIDBI retained its position in the top 30 Development Banks of the World in the ranking of The Banker, London.
- Note: Statement 2 is not correct, because SIDBI does not provide all type of loan to the agriculture sector.
