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What is SIDBI?
SIDBI is the acronym for Small Industries Development Bank of India. It is a development financial institution in India, headquartered in Lucknow. It was founded in 1990 and is wholly owned by the Government of India. SIDBI’s primary objective is to promote and finance small and medium enterprises in India. SIDBI Full Form
Organizational Structure
The SIDBI has a Boactors chaired by the Minister of State for Finance. The board has 14 other directors, including the Managing Director and four other executive directors. The bank has a Chairman and four Managing Directors. The Chairman is the Chief Executive Officer of the bank.
The SIDBI has a network of 83 offices across the country. It provides finance to small businesses through its branches and subsidiaries. The bank also offers financial support to small businesses through its venture capital fund, the Small Industries Development Bank of India Venture Capital Fund Ltd. (SIDBI Venture Fund).
The SIDBI is a member of the Asian Development Bank and the World Bank. It also has a memorandum of understanding with the United Nations Development Programme to promote small businesses in India.
Evolution of SIDBI
The Small Industries Development Bank of India (SIDBI) was set up on 2 April 1990 under the Small Industries Development Bank of India Act, 1989. The to promote and financeg and finance small-scale industries in India.
The bank initially provided term loans and venture capital to small-scale industries. In 1993, it began providing refinance facilities to banks and financial institutions providing loans to small-scale industries. In 1995, it began providing loans and guarantees to small-scale industries.
- In 2000, SIDBI began providing loans to micro-finance institutions. In 2001, it began providing loans to women entrepreneurs. In 2004, it began providing loans to social enterprises.
- In 2006, SIDBI began providing loans to start-ups. In 2007, it began providing loans to MSMEs. In 2009, it began providing loans to green businesses.
- In 2011, SIDBI began providing loans to food processing businesses. In 2013, it started providing loans to textiles businesses. In 2014, it began providing loans to leather businesses.
Finance Facilities Offered by SIDBI
The Small Industries Development Bank of India offers a number of financial facilities to small businesses. These include loans, guarantees, and equity investments.
Functions of SIDBI
SIDBI is a development finance institution which provides finance and other services to small businesses in India. Some of the key functions of SIDBI include:
- Providing finance to small businesses
SIDBI offers a variety of financial products to small businesses, including loans, venture capital, and equity finance.
- Providing support and mentorship to small businesses
SIDBI offers support and mentorship to small businesses to help them grow and expand their operations.
- Promoting entrepreneurship
SIDBI promotes entrepreneurship by providing funding and support to new businesses.
- Supporting the development of the small business sector
SIDBI supports the development of the small business sector by providing access to finance and other services.
