What is the full form of SIDBI?
SIDBI Full Form is the Small Industries Development Bank of India. SIDBI is an Indian development financial institution with headquarters in Lucknow and branches across the country. In this article, we talk about what is the full form of SIDBI and some important information about SIDBI. Its purpose is to provide the industry with refinancing options and short-term financing and to serve as the leading financial institution in the MSME (Micro, Small, and Medium-Sized Enterprises) sector.
Read Other Full Forms
Additionally, SIDBI coordinates the roles of organizations participating in related activities. On April 2, 1990, a Congressional Act established it. The company’s headquarters are in Lucknow. The Department of Financial Services of the Indian government oversees SIDBI.
Important pieces of information about SIDBI
- SIDBI is one of four All India banking institutions governed and monitored by the Reserve Bank of India.
- The remaining three are the IEB (India Exim Bank), NABARD, and NHB. In recent years, however, the government has taken control of NHB by acquiring more than 51% of its stock.
- Through credit extensions and refinancing operations, they fulfill a mandated function in the financial sector and satisfy the long-term financing needs of the industrial sector.
- SIDBI is involved in the growth of microfinance banks via the SIDBI Foundation for Micro Credit and contributes to the expansion of microfinance via the MFI (Micro Finance Institution) route.
- Its support & growth program involves the promotion of rural businesses and economic growth.
- It operates a refinancing program known as the Institutional Finance Program to increase and maintain the MSE market’s capital supply.
- Under this program, SIDBI provides Term Loan assistance to banks, small finance banks, and non-banking financial institutions.
- In addition to its refinancing activities, SIDBI also provides direct loans to MSMEs.
