Question

Which of the following acts as the premier financial institution for promotion, funding and development of the Micro, Small and Medium Enterprises (MSME) sector?
1. SEBI
2. SBI
3. SIDBI
4. NABARD

Answer 1

Correct Answer - Option 3 : SIDBI

The correct answer is SIDBI.

• Small Industries Development Bank of India (SIDBI) is an independent financial institution aimed at aiding the growth and development of Micro, Small, and Medium Enterprises (MSMEs).
• Which contribute significantly to the national economy in terms of production, employment, and exports.
  • SIDBI was set up on 2nd April 1990.
  • SIDBI was established with the mission of facilitating and strengthening the flow of credit to Micro, Small, and Medium Enterprises and addressing the developmental and financial gaps in the ecosystem of MSMEs
  • It is a statutory body set up under an act of the Indian Parliament in 1990.
• Functions of SIDBI
  • ​SIDBI refinances loans extended by the primary lending institutions to small-scale industrial units and also provides resources support to them.
  • To initiate steps for technological up-gradation and modernization of existing units.
  • Promotes state-level venture funds in association with the respective state governments.

Organization	Full-Form	Founded Year	Headquarters	Chairperson
SEBI	Securities and Exchange Board of India	12 April 1992	Mumbai	Ajay Tyagi
SIDBI	Small Industries Development Bank of India	2 April 1990	Lucknow	Sivasubramanian Ramann
SBI	State Bank of India	1 July 1955	Mumbai	Dinesh Kumar Khara
NABARD	National Bank for Agriculture and Rural Development	12 July 1982	Mumbai	Dr. G.R. Chintala