Small Industries Development Bank of India (SIDBI)

Subject – Economy

Context – SIDBI extends ₹650-crore fund line to AU SFB, Jana SFB

Concept –

SIDBI is the principal development financial institution for promotion, financing and development of Micro, Small and Medium Enterprises (MSME) sector in India.
It was established on April 2, 1990 through an Act of Parliament (thus, it is 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 MSME eco-system across the country.
It co-ordinates 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.

SIDBI also functions as a Nodal/Implementing Agency to various ministries of the Government of India viz., Ministry of MSME, Ministry of Textiles, Ministry of Commerce and Industry, Ministry of Food Processing and Industry, etc.

To know about Small Finance Bank (SFBs), please refer August 2021 DPN.