The full form of SIDBI is Small Industries Development Bank of India. SIDBI is an Indian development financial institution with headquarters in Lucknow and offices across the country. Its goal is to serve as the primary financial institution in the MSME (Micro, Small, and Medium Enterprises) industry by providing refinancing options and short-term financing.
SIDBI also coordinates the roles of organisations involved in similar initiatives. On April 2, 1990, an Act of Parliament established it. Its headquarters are in Lucknow. SIDBI is part of the Indian government’s Department of Financial Services.
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Important pieces of information about SIDBI
- SIDBI is one of four RBI institutions that are supervised and monitored by All India Banking Institutions.
- IEB (India Exim Bank), NABARD, and NHB are the other three. However, by acquiring more than 51% of the stock, NHB has recently come under government control.
- They play a statutory function in the financial sector and respond to the long-term financing needs of the industrial sector through credit extensions and refinancing operations.
- SIDBI is involved in the growth of microfinance banks and supports extending microfinance through the MFI (Micro Finance Institution) pathway through the SIDBI Foundation for Micro Credit.
- Its assistance and growth programme focuses on rural business development and economic development.
- It operates the Institutional Finance Program to expand and sustain the supply of capital to the MSE market.
- Under this scheme, SIDBI provides Term Loan support to banks, small financing banks, and non-banking financial organisations.
- In addition to refinancing, SIDBI makes direct loans to MSMEs.