Q. Consider the following statements regarding the Small Industries Development Bank of India (SIDBI):
1.It was established as a wholly owned subsidiary of the Reserve Bank of India (RBI) to promote and finance the Micro, Small and Medium Enterprises (MSME) sector.
2.It functions as the principal financial institution for the promotion, financing, and development of the MSME sector in India.
3.It is headquartered in New Delhi.
Which of the statements given above is/are correct?
Answer: B
Notes:
Explanation: 1 and 2
Statement 1 is incorrect: SIDBI was established in 1990 under an Act of Parliament, but it is not a subsidiary of RBI. It was initially a subsidiary of IDBI, and later ownership diversified.
Statement 2 is correct: SIDBI is the apex financial institution for MSMEs, providing direct finance, refinance, and development support.
Statement 3 is incorrect: Headquarters: Lucknow, Uttar Pradesh
Source: PIB
