An Overview of SIDBI:
The SIDBI full form is the Small Industries Development Bank of India. The Industrial Development Bank of India (IDBI) created the SIDBI (Small Industries Development Bank of India) as a special Act of the Parliament in 1988, which went into effect on April 2, 1990. SIDBI is an entirely owned subsidiary of IDBI.
Small Industries Development Fund and National Equity Fund, which were previously managed by IDBI, are now under the control of SIDBI. The MSME (Micro, Small, and Medium Enterprise) sector is promoted, developed, and funded primarily by SIDBI. Small Industries Development Bank of India promotes energy efficiency and greener production in addition to its focus on the growth of the Micro, Small, and Medium Enterprise sector.
SIDBI aids MSMEs in obtaining the capital they need to expand, market, develop, and sell their cutting-edge technology and goods. The bank offers several programs in addition to financial services and goods to satisfy the needs of different enterprises and individuals.
Functions of SIDBI:
- Small Industries Development Bank of India provides small-scale industrial entities with resources and help in addition to refinancing loans given to them by PLIs.
- It reduces and increases bill discounts.
- Additionally, it aids in enlarging the marketing channels for SSI (Small Scale Industries) sector items on both home and foreign markets.
- It provides industrial companies operating in the small-scale sector with services like factoring, leasing, etc.
- To provide jobs and prevent people from moving to urban regions, it encourages employment-oriented industries, especially in semi-urban areas.
- Additionally, the SIDBI full form is Small Industries Development Bank of India starts the modernization and technological advancement of existing units.
- Additionally, in coordination with commercial banks, it provides the timely flow of credit for working capital as well as term loans to small-scale industries.
- Additionally, it works to promote state-level venture funds.