News: The Union Cabinet has approved the equity support of Rs.5,000 crore to Small Industries Development Bank of India (SIDBI).
About Small Industries Development Bank of India (SIDBI)
- Set up: It was set up on 2nd April 1990 under an Act of Indian Parliament, as a wholly owned subsidiary of IDBI Bank. It was delinked from IDBI on March 27, 2000.
- Ministry: It comes under the Ministry of Finance.
- Headed by: Board of Directors along with Chairman & Managing Director.
- Mission: To facilitate and strengthen the flow of credit to MSMEs (Micro, Small, and Medium Enterprises) while addressing financial and developmental gaps within the MSME ecosystem.
- Mandate: To serve as the principal financial institution for executing the triple agenda of promotion, financing, and development of the MSME sector.
- Functions:
- Indirect Lending: The Bank provides financing to MSMEs through banks, SFBs, NBFCs, MFIs, and new-age fin-techs, leveraging the multiplier effect to achieve larger outreach.
- Direct Lending: It fills existing credit gaps in the MSME sector through innovative and demonstrative lending products that can be scaled up by the credit delivery ecosystem.
- Fund of Funds: The Bank supports emerging startups and promotes an entrepreneurship culture by providing capital through the Fund of Funds channel.
- Promotion and Development: It promotes entrepreneurship and handholds budding entrepreneurs for holistic development of the MSME sector through credit-plus initiatives.
- Facilitator: The Bank acts as a facilitator by serving as the nodal agency for government schemes aimed at MSMEs.
- Shareholders: Government of India (GOI), State Bank of India (SBI), LIC, and NABARD are among the major shareholders.
- Headquarters: Lucknow, Uttar Pradesh
