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Consider the following statements with reference to the Small Industries Development Bank of India (SIDBI):
1. It is the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector in India.
2. At present, it is a wholly owned subsidiary of the Industrial Development Bank of India (IDBI).
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements with reference to the Small Industri...
Airbus Helicopters and the Small Industries Development Bank of India (SIDBI) recently signed a Memorandum of Understanding (MoU) for financing the purchase of Airbus’ helicopters in India.
About Small Industries Development Bank of India (SIDBI):
  • It was set up on 2nd April,1990, under an Actofthe Indian Parliament.
  • Purpose: To act as the principal financial institution for promotion, financing, and development of the Micro, Small and Medium Enterprise (MSME) sector, as well as for the co-ordination of functions of institutions engaged in similar activities.
  • It is under the jurisdiction of the Ministry of Finance, GoI.
  • It was incorporated initially as a wholly owned subsidiary ofthe Industrial Development Bank of India (IDBI).
  • Currently, the shares of SIDBI are held by the Government of India (GoI) and 22 other institutions/PSBs/insurance companies owned or controlled by the Central Government.
  • Headquarters: Lucknow, Uttar Pradesh
  • SIDBI helps MSMEs in acquiring the funds they require to grow, market, develop, and commercialize their technologies and innovative products.
  • The bank provides several schemes and also offers financial services and products to meet individual requirements of various businesses.
  • Financial support to MSMEs is provided by way of
  • Indirect/refinance to banks/Financial Institutions for onward lending to MSMEs
  • Direct financein niche areaslike risk capital, sustainable finance, receivable financing, service sector financing, etc.
  • SIDBI was made responsible foradministering theSmall Industries Development Fund and the National Equity Fund that were administered by IDBI before.
  • In order to promote and develop the MSME sector, SIDBI adopts a ‘Credit Plus’approach, under which, besides credit, SIDBI supports enterprise developmentskill upgradation, marketing support, cluster development, technology modernization, etc.
Hence only statement 1 is correct.
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Consider the following statements with reference to the Small Industries Development Bank of India (SIDBI):1. It is the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector in India.2. At present, it is a wholly owned subsidiary of the Industrial Development Bank of India (IDBI).Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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Consider the following statements with reference to the Small Industries Development Bank of India (SIDBI):1. It is the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector in India.2. At present, it is a wholly owned subsidiary of the Industrial Development Bank of India (IDBI).Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements with reference to the Small Industries Development Bank of India (SIDBI):1. It is the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector in India.2. At present, it is a wholly owned subsidiary of the Industrial Development Bank of India (IDBI).Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements with reference to the Small Industries Development Bank of India (SIDBI):1. It is the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector in India.2. At present, it is a wholly owned subsidiary of the Industrial Development Bank of India (IDBI).Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?.
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