UGM June 2019 Q94
- Option : D
- Explanation : The Small Industries Development Bank of India (SIDBI) was set up in 1990 under an act of parliament—the SIDBI Act, 1989. The charter establishing SIDBI envisaged SIDBI to be ‘the principal financial institution for the promotion, financing, and development of industries in the small-scale sector and to coordinate the functions of other institutions engaged in similar activities’. SIDBI offers a chain of financial products covering microfinance, business, incubation, venture capital, project finance, assistance for technology development and marketing of small scale industries products, export finance, bills finance, factoring and guarantees for loans. SIDBI also provides support services such as training, market information, and advice for enhancing the inherent strength of small scale units. SIDBI is among the top 30 development banks of the world. SIDBI’s growth is directly linked to the growth of the SSI sector. And this sector stands at the crossroads and no more in a safe zone due to lack of number of concessions and liberalization and progressive internationalization of trade, deregulation, growing access of foreign capital, and dereservation. SIDBI has decided to change its track by converting into a commercial bank with a focus on funding small and medium enterprises (SMEs) and the SSI sector.
