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{{Use Indian English|date=January 2016}}
{{Use Indian English|date=January 2016}}
{{Infobox government agency
{{Infobox government agency
| agency_name = Small Industries Development Bank of India (SIDBI)
| agency_name     = Small Industries Development Bank of India (SIDBI)
| seal =  
| seal           =  
| logo = SIDBI LOGO.png
| logo           = SIDBI LOGO.png
| jurisdiction = [[Ministry of Finance (India)|Ministry of Finance]] , [[Government of India]]  
| jurisdiction   = [[Ministry of Finance (India)|Ministry of Finance]], [[Government of India]]
| headquarters = [[Lucknow]], [[Uttar Pradesh]], [[India]]
| headquarters   = [[Lucknow]], [[Uttar Pradesh]], [[India]]
| employees =  
| employees       =  
| budget =  
| budget         =  
| formed = {{Start date and age|df=yes|1990|04|02}}
| formed         = {{Start date and age|df=yes|02-April-1990}}
| chief1_name = Sivasubramanian Ramann , [[Indian Audit and Accounts Service|IA&AS]]
| chief1_name     = Manoj Mittal
| chief1_position = {{small|([[Chairman]] & [[Managing director|MD]])}}<ref>[https://sidbi.in/AnnualReport201920/board-of-directors.php]. Accessed December 2020.</ref>
| chief1_position = {{small|([[Chairman]] & [[Managing director|MD]])}}<ref>[https://sidbi.in/AnnualReport201920/board-of-directors.php]. Accessed December 2020.</ref>
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| parent_department = | website = {{URL|http://www.sidbi.in/}}
| parent_department =  
| agency_type = [[Regulatory Agency|Regulatory Body]]
| website         = {{URL|http://www.sidbi.in/}}
| agency_type     = [[Regulatory Agency|Regulatory Body]]
}}
}}
'''Small Industries Development Bank of India''' ('''SIDBI''') is the apex [[regulatory body]] for overall licensing and regulation of [[Small and medium-sized enterprises|micro, small and medium enterprise finance companie]]s in India. It is under the [[jurisdiction]] of [[Ministry of Finance (India)|Ministry of Finance]] , [[Government of India]] headquartered at [[Lucknow]] and having its offices all over the country. Its purpose is to provide [[refinance]] facilities to banks and financial institutions and engage in term lending and working capital finance to industries, and serves as the principal financial institution in the [[Micro, Small and Medium Enterprises]] (MSME) sector.  SIDBI also coordinates the functions of institutions engaged in similar activities. It was established on 2 April 1990, through an [[Act of Parliament]]. It is headquartered in [[Lucknow]].<ref>{{cite web|url=http://financialservices.gov.in/banking-divisions/Financial-Institutions-and-others/Small-Industries-Development-Bank-of-India%28SIDBI%29?page=2 |title=Small Industries Development Bank of India(SIDBI) &#124; Department of Financial Services &#124; Ministry of Finance &#124; Government of India |publisher=Financialservices.gov.in |access-date=2018-10-14}}</ref>
'''Small Industries Development Bank of India''' ('''SIDBI''') is the apex [[regulatory body]] for overall licensing and regulation of [[Small and medium-sized enterprises|micro, small and medium enterprise finance companie]]s in India. It is under the [[jurisdiction]] of [[Ministry of Finance (India)|Ministry of Finance]], [[Government of India]] headquartered at [[Lucknow]] and having its offices all over the country.
SIDBI is one of the four [[All India Financial Institutions]] regulated and supervised by the [[Reserve Bank of India]]; other three are [https://www.eximbankindia.in/ India Exim Bank], [[NABARD]] and [[National Housing Bank|NHB]]. But recently NHB came under government control by taking more than 51% stake. They play a statutory role in the financial markets through credit extension and refinancing operation activities and cater to the long-term financing needs of the industrial sector.<ref>{{cite web|url=https://www.rbi.org.in/SCRIPTS/PublicationsView.aspx?id=16720 |title=Reserve Bank of India - Publications |publisher=Rbi.org.in |access-date=2018-10-14}}</ref>


SIDBI is active in the development of Micro Finance Institutions through SIDBI Foundation for Micro Credit, and assists in extending microfinance through the Micro Finance Institution (MFI) route.<ref>{{cite web|url=https://www.idfc.org/Members/sidbi.aspx|title=IDFC|website=www.idfc.org}}</ref> Its promotion & development program focuses on rural enterprises promotion and entrepreneurship development.<ref>{{cite web|url=http://www.adfiap.org/resources/sidbis-financial-inclusion-program-covers-poorest-poor/|title=SIDBI's Financial Inclusion Program covers 'Poorest of the Poor' - ADFIAP}}</ref><ref>{{cite web|url=http://indiamicrofinance.com/poorest-states-inclusive-growth-programme-sidbi-ukaid-dfid-rfp.html|title=Poorest States Inclusive Growth Programme - SIDBI UKAID DFID RFP|website=indiamicrofinance.com}}</ref>
SIDBI was established on 02-April-1990, by Government of India, as a wholly owned subsidiary of [[IDBI Bank]] . It was delinked from IDBI w.e.f. 27-March-2000.  Its purpose is to provide [[refinance]] facilities to banks and financial institutions and engage in term lending and working capital finance to industries, and serves as the principal financial institution in the [[Micro, Small and Medium Enterprises]] (MSME) sector.  SIDBI also coordinates the functions of institutions engaged in similar activities. It was established in 1990,<ref>[https://legislative.gov.in/sites/default/files/A1989-39.pdf The Small Industries Development Bank of India act. 1989] {{Archive url|url=https://web.archive.org/web/20211028102841/https://legislative.gov.in/sites/default/files/A1989-39.pdf|date=2021-10-28}}</ref> through an [[Act of Parliament]].<ref>{{cite web |url=http://financialservices.gov.in/banking-divisions/Financial-Institutions-and-others/Small-Industries-Development-Bank-of-India%28SIDBI%29?page=2 |title=Small Industries Development Bank of India(SIDBI) &#124; Department of Financial Services &#124; Ministry of Finance &#124; Government of India |publisher=Financialservices.gov.in |access-date=2018-10-14 |archive-date=23 March 2018 |archive-url=https://web.archive.org/web/20180323155449/http://financialservices.gov.in/banking-divisions/Financial-Institutions-and-others/Small-Industries-Development-Bank-of-India(SIDBI)?page=2 |url-status=live }}</ref> SIDBI is one of the five [[All India Financial Institutions]] regulated and supervised by the [[Reserve Bank of India]]. The other four are [[Exim Bank of India|Exim Bank Of India]], [[NABARD]], NaBFID (https://nabfid.org/) and [[National Housing Bank|NHB]]. They play a statutory role in the financial markets through credit extension and refinancing operation activities and cater to the long-term financing needs of the industrial sector.<ref>{{cite web |url=https://www.rbi.org.in/SCRIPTS/PublicationsView.aspx?id=16720 |title=Reserve Bank of India - Publications |publisher=Rbi.org.in |access-date=2018-10-14 |archive-date=12 June 2018 |archive-url=https://web.archive.org/web/20180612143003/https://www.rbi.org.in/SCRIPTS/PublicationsView.aspx?id=16720 |url-status=live }}</ref>


In order to increase and support money supply to the MSE sector, it operates a refinance program known as Institutional Finance program. Under this program, SIDBI extends Term Loan assistance to Banks, Small Finance Banks and Non-Banking Financial Companies. Besides the refinance operations, SIDBI also lends directly to MSMEs.<ref>{{cite web|url=http://pib.nic.in/newsite/PrintRelease.aspx?relid=146400|title=Establishment of Fund of Funds for funding support to Start-ups|website=pib.nic.in}}</ref><ref>{{cite web|url=https://www.sidbi.in/shareholding.php|title=Shareholding :: Small Industries Development Bank of India|website=www.sidbi.in}}</ref>
SIDBI is active in the development of Micro Finance Institutions through SIDBI Foundation for Micro Credit, and assists in extending microfinance through the Micro Finance Institution (MFI) route.<ref>{{cite web|url=https://www.idfc.org/Members/sidbi.aspx|title=IDFC|website=www.idfc.org}}</ref> Its promotion & development program focuses on rural enterprises promotion and entrepreneurship development.<ref>{{cite web|url=http://www.adfiap.org/resources/sidbis-financial-inclusion-program-covers-poorest-poor/|title=SIDBI's Financial Inclusion Program covers 'Poorest of the Poor' - ADFIAP|access-date=10 June 2018|archive-date=12 June 2018|archive-url=https://web.archive.org/web/20180612152201/http://www.adfiap.org/resources/sidbis-financial-inclusion-program-covers-poorest-poor/|url-status=live}}</ref><ref>{{cite web|url=http://indiamicrofinance.com/poorest-states-inclusive-growth-programme-sidbi-ukaid-dfid-rfp.html|title=Poorest States Inclusive Growth Programme - SIDBI UKAID DFID RFP|website=indiamicrofinance.com|date=5 November 2022 }}</ref>
 
In order to increase and support money supply to the MSE sector, it operates a refinance program known as Institutional Finance program. Under this program, SIDBI extends Term Loan assistance to Banks, Small Finance Banks and Non-Banking Financial Companies. Besides the refinance operations, SIDBI also lends directly to MSMEs.<ref>{{cite web|url=http://pib.nic.in/newsite/PrintRelease.aspx?relid=146400|title=Establishment of Fund of Funds for funding support to Start-ups|website=pib.nic.in|access-date=10 June 2018|archive-date=12 June 2018|archive-url=https://web.archive.org/web/20180612141221/http://pib.nic.in/newsite/PrintRelease.aspx?relid=146400|url-status=live}}</ref><ref>{{cite web|url=https://www.sidbi.in/shareholding.php|title=Shareholding :: Small Industries Development Bank of India|website=www.sidbi.in|access-date=23 March 2018|archive-date=12 June 2018|archive-url=https://web.archive.org/web/20180612140203/https://www.sidbi.in/shareholding.php|url-status=live}}</ref>


==Non-Financial Intervention==
==Non-Financial Intervention==
As part of non-financial intervention in the MSME sector, SIDBI had also undertaken various measures in the past. Recently, in association with credit rating agency CRISIL and Credit Information Company TransUnion CIBIL it has introduced "CriSidEx" and "MSME Pulse".
As part of non-financial intervention in the MSME sector, SIDBI had also undertaken various measures in the past. Recently, in association with credit rating agency CRISIL and Credit Information Company TransUnion CIBIL it has introduced "CriSidEx" and "MSME Pulse".<ref>{{Cite web |date=2018-04-07 |title=Fixed Deposits, MSME borrowing becomes easier in Indian Overseas Bank; here's how |url=https://www.zeebiz.com/companies/news-fixed-deposits-msme-borrowing-becomes-easier-in-indian-overseas-bank-heres-how-41953 |access-date=2023-03-17 |website=Zee Business |archive-date=17 March 2023 |archive-url=https://web.archive.org/web/20230317083139/https://www.zeebiz.com/companies/news-fixed-deposits-msme-borrowing-becomes-easier-in-indian-overseas-bank-heres-how-41953 |url-status=live }}</ref>
 
CriSidEx, India's first sentiment index for micro and small enterprises (MSEs) has been developed jointly by CRISIL & SIDBI. It is a composite index based on a diffusion index of 8 parameters and measures MSE business sentiment on a scale of 0 (extremely negative) to 200 (extremely positive). The crucial benefit of CriSidEx is that its readings will flag potential headwinds and changes in production cycles and thus help improve market efficiencies. And by capturing the sentiment of exporters and importers, it will also offer actionable indicators on foreign trade.<ref>{{cite web|url=https://www.livemint.com/Money/TxoEaqkRbBp0FvlZs2ahsI/Jaitley-launches-CriSidEx-says-economy-witnessing-a-phase-o.html|title=Jaitley launches CriSidEx, says economy witnessing a phase of consolidation|first=Komal|last=Gupta|date=3 February 2018|access-date=10 June 2018|archive-date=10 June 2018|archive-url=https://web.archive.org/web/20180610163014/https://www.livemint.com/Money/TxoEaqkRbBp0FvlZs2ahsI/Jaitley-launches-CriSidEx-says-economy-witnessing-a-phase-o.html|url-status=live}}</ref><ref>{{cite web|url=http://pib.nic.in/newsite/PrintRelease.aspx?relid=176130|title=CRISIL, SIDBI Launch India's First MSE Sentiment Index|website=pib.nic.in|access-date=10 June 2018|archive-date=12 June 2018|archive-url=https://web.archive.org/web/20180612141335/http://pib.nic.in/newsite/PrintRelease.aspx?relid=176130|url-status=live}}</ref>


CriSidEx, India's first sentiment index for micro and small enterprises (MSEs) has been developed jointly by CRISIL & SIDBI. It is a composite index based on a diffusion index of 8 parameters and measures MSE business sentiment on a scale of 0 (extremely negative) to 200 (extremely positive). The crucial benefit of CriSidEx is that its readings will flag potential headwinds and changes in production cycles and thus help improve market efficiencies.  And by capturing the sentiment of exporters and importers, it will also offer actionable indicators on foreign trade.<ref>{{cite web|url=https://www.livemint.com/Money/TxoEaqkRbBp0FvlZs2ahsI/Jaitley-launches-CriSidEx-says-economy-witnessing-a-phase-o.html|title=Jaitley launches CriSidEx, says economy witnessing a phase of consolidation|first=Komal|last=Gupta|date=3 February 2018}}</ref><ref>{{cite web|url=http://pib.nic.in/newsite/PrintRelease.aspx?relid=176130|title=CRISIL, SIDBI Launch India's First MSE Sentiment Index|website=pib.nic.in}}</ref>
SIDBI in association with TransUnion CIBIL launched "MSME Pulse" and Microfinance Pulse launched by Equifax, a quarterly report on MSME credit activity, for closely tracking and monitoring the MSME segment in the country. The report is based on a study done on over five million active MSMEs who have access to formal credit, with live credit facilities in the Indian banking system.<ref>{{cite news|url=https://economictimes.indiatimes.com/small-biz/sme-sector/sidbi-and-transunion-cibil-launch-msme-pulse/articleshow/63269240.cms|title=MSME's most attractive segment in commercial credit with fastest growth, low NPAs: Report|date=12 March 2018|newspaper=The Economic Times|archive-date=12 June 2018|access-date=10 June 2018|archive-url=https://web.archive.org/web/20180612144424/https://economictimes.indiatimes.com/small-biz/sme-sector/sidbi-and-transunion-cibil-launch-msme-pulse/articleshow/63269240.cms|url-status=live}}</ref>


SIDBI in association with TransUnion CIBIL launched "MSME Pulse" and Microfinance Pulse launched by Equifax, a quarterly report on MSME credit activity, for closely tracking and monitoring the MSME segment in the country. The report is based on a study done on over five million active MSMEs who have access to formal credit, with live credit facilities in the Indian banking system.<ref>{{cite web|url=https://economictimes.indiatimes.com/small-biz/sme-sector/sidbi-and-transunion-cibil-launch-msme-pulse/articleshow/63269240.cms|title=MSME's most attractive segment in commercial credit with fastest growth, low NPAs: Report|date=12 March 2018|via=The Economic Times}}</ref>
SIDBI has launched the ‘Udyami Mitra’ Portal to improve accessibility of credit and handholding services to MSMEs. They can select and apply for preferred banks through this portal. Under the portal entrepreneurs can apply for loan without physically visiting any bank branches and can select from over 1 lakh bank branches, track their application status and avail multiple loan benefits. It also has facility for uploading all necessary documents. Through the portal the MSMEs can also seek handholding support for getting finance.<ref>{{cite web|url=http://pib.nic.in/Pressreleaseshare.aspx?PRID=1514304|title=Udyami Mitra Portal}}</ref><ref>{{cite web|url=http://knnindia.co.in/news/newsdetails/economy/sidbi-launches-udyami-mitra-portal-to-improve-accessibility-of-credit-for-msmes|title=SIDBI launches 'Udyami Mitra' portal to improve accessibility of credit for MSMEs|first=Knn India - Knowledge & News|last=Network|website=knnindia.co.in|access-date=10 June 2018|archive-date=12 June 2018|archive-url=https://web.archive.org/web/20180612141928/http://knnindia.co.in/news/newsdetails/economy/sidbi-launches-udyami-mitra-portal-to-improve-accessibility-of-credit-for-msmes|url-status=live}}</ref> SIDBI has also entered into an arrangement with CSC e-governance Services (CSCeGS) to take Udyami Mitra portal to the unserved and the underserved MSMEs. CSCeGS is a special purpose vehicle (SPV) set up by ministry of electronics and IT (MeitY) which acts as connect point for various digitally aligned services to villages in the country.<ref>{{cite web|url=https://www.business-standard.com/article/pti-stories/sidbi-csc-partner-to-offer-msmes-better-credit-access-118030600963_1.html|title=Sidbi, CSC partner to offer MSMEs better credit access|agency=Press Trust of India|date=6 March 2018|via=Business Standard}}</ref>


SIDBI has launched the ‘Udyami Mitra’ Portal to improve accessibility of credit and handholding services to MSMEs. They can select and apply for preferred banks through this portal. Under the portal entrepreneurs can apply for loan without physically visiting any bank branches and can select from over 1 lakh bank branches, track their application status and avail multiple loan benefits. It also has facility for uploading all necessary documents. Through the portal the MSMEs can also seek handholding support for getting finance.<ref>{{cite web|url=http://pib.nic.in/Pressreleaseshare.aspx?PRID=1514304|title=Udyami Mitra Portal}}</ref><ref>{{cite web|url=http://knnindia.co.in/news/newsdetails/economy/sidbi-launches-udyami-mitra-portal-to-improve-accessibility-of-credit-for-msmes|title=SIDBI launches 'Udyami Mitra' portal to improve accessibility of credit for MSMEs|first=Knn India - Knowledge & News|last=Network|website=knnindia.co.in}}</ref> SIDBI has also entered into an arrangement with CSC e-governance Services (CSCeGS) to take Udyami Mitra portal to the unserved and the underserved MSMEs. CSCeGS is a special purpose vehicle (SPV) set up by ministry of electronics and IT ( MeitY) which acts as connect point for various digitally aligned services to villages in the country.<ref>{{cite web|url=https://www.business-standard.com/article/pti-stories/sidbi-csc-partner-to-offer-msmes-better-credit-access-118030600963_1.html|title=Sidbi, CSC partner to offer MSMEs better credit access|agency=Press Trust of India|date=6 March 2018|via=Business Standard}}</ref>
In May-2024, The Small Industries Development Bank of India (SIDBI) signed a MoU with [[Airbus Helicopters]] to finance civil helicopter purchases in India.<ref>{{cite web |title=SIDBI Takes Flight: Signs MoU with Airbus Helicopters to Finance Civil Aviation in India |url=https://www.brutimes.com/news/business/sidbi-takes-flight-signs-mou-with-airbus-helicopters-to-finance-civil-aviation-in-india |website=Bru Times News |language=en |access-date=26 May 2024 |archive-date=26 May 2024 |archive-url=https://web.archive.org/web/20240526091158/https://www.brutimes.com/news/business/sidbi-takes-flight-signs-mou-with-airbus-helicopters-to-finance-civil-aviation-in-india |url-status=live }}</ref><ref>{{cite web |title=Airbus Helicopters and SIDBI sign an MoU for helicopter financing in India |url=https://timesofindia.indiatimes.com/business/india-business/airbus-helicopters-and-sidbi-sign-an-mou-for-helicopter-financing-in-india/articleshow/110404954.cms |website=The Times of India |date=24 May 2024 |access-date=26 May 2024 |archive-date=25 May 2024 |archive-url=https://web.archive.org/web/20240525012037/https://timesofindia.indiatimes.com/business/india-business/airbus-helicopters-and-sidbi-sign-an-mou-for-helicopter-financing-in-india/articleshow/110404954.cms |url-status=live }}</ref>


==Other activities==
==Other activities==
SIDBI has floated several other entities for related activities, including:
SIDBI has floated several other entities for related activities, including:
* [[The SIDBI Foundation for Microcredit]]
* [[The SIDBI Foundation for Microcredit]]
* SIDBI Venture Capital Limited (SVCL)<ref name=":0">{{cite web|url=http://financialservices.gov.in/banking-divisions/Financial-Institutions-and-others/Small-Industries-Development-Bank-of-India(SIDBI)|title=Small Industries Development Bank of India(SIDBI) {{!}} Department of Financial Services {{!}} Ministry of Finance {{!}} Government of India|website=financialservices.gov.in|language=en|access-date=2018-02-17}}</ref> - for providing Venture Capital (VC) assistance to MSMEs;
* SIDBI Venture Capital Limited (SVCL)<ref name=":0">{{cite web|url=http://financialservices.gov.in/banking-divisions/Financial-Institutions-and-others/Small-Industries-Development-Bank-of-India(SIDBI)|title=Small Industries Development Bank of India(SIDBI) {{!}} Department of Financial Services {{!}} Ministry of Finance {{!}} Government of India|website=financialservices.gov.in|language=en|access-date=2018-02-17|archive-date=18 February 2018|archive-url=https://web.archive.org/web/20180218024205/http://financialservices.gov.in/banking-divisions/Financial-Institutions-and-others/Small-Industries-Development-Bank-of-India(SIDBI)|url-status=live}}</ref> – for providing Venture Capital (VC) assistance to MSMEs;
* [[Micro Units Development and Refinance Agency Bank|Micro Units Development & Refinance Agency (MUDRA)]] - for ‘funding the unfunded’ micro enterprises in the country;
* [[Micro Units Development and Refinance Agency Bank|Micro Units Development & Refinance Agency (MUDRA)]] – for 'funding the unfunded' micro enterprises in the country;
* Receivable Exchange of India Ltd. (RXIL)<ref>{{Cite journal|title=Guidelines for setting up of and operating the Trade Receivables Discounting System (TReDS)|url=https://rbidocs.rbi.org.in/rdocs/Content/PDFs/TREDSG031214.pdf|journal=Guidelines for Setting up of and Operating the Trade Receivables Discounting System (TReDS)}}</ref> to enable faster realisation of receivables by MSMEs;
* Receivable Exchange of India Ltd. (RXIL)<ref>{{Cite journal|title=Guidelines for setting up of and operating the Trade Receivables Discounting System (TReDS)|url=https://rbidocs.rbi.org.in/rdocs/Content/PDFs/TREDSG031214.pdf|journal=Guidelines for Setting up of and Operating the Trade Receivables Discounting System (TReDS)|archive-date=18 February 2018|access-date=17 February 2018|archive-url=https://web.archive.org/web/20180218090333/https://rbidocs.rbi.org.in/rdocs/Content/PDFs/TREDSG031214.pdf|url-status=live}}</ref> to enable faster realisation of receivables by MSMEs;
* [[SME Rating Agency of India|SMERA Ratings Limited (SMERA)]]<ref name=":0" /> - for credit rating of MSMEs, renamed as Acuite Ratings & Research Limited.;<ref>{{cite web|url=https://www.acuite.in/|title=Acuité Ratings & Research|website=www.acuite.in}}</ref>  
* [[SME Rating Agency of India|SMERA Ratings Limited (SMERA)]]<ref name=":0" /> – for credit rating of MSMEs, renamed as Acuite Ratings & Research Limited.;<ref>{{cite web|url=https://www.acuite.in/|title=Acuité Ratings & Research|website=www.acuite.in}}</ref>  
* India SME Technology Services Ltd (ISTSL)<ref name=":0" /> - for technology advisory and consultancy services and
* India SME Technology Services Ltd (ISTSL)<ref name=":0" /> – for technology advisory and consultancy services and
* India SME Asset Reconstruction Company Ltd. (ISARC)<ref name=":0" /> for speedier resolution of Non-Performing Assets (NPA) in the MSME sector.
* India SME Asset Reconstruction Company Ltd. (ISARC)<ref name=":0" /> for speedier resolution of Non-Performing Assets (NPA) in the MSME sector.


SIDBI supports the Government of India in its initiatives and work as a nodal agency for some of the schemes related to development of MSMEs, such as [[Make in India]] and [[Startup India]].
SIDBI supports the Government of India in its initiatives and work as a nodal agency for some of the schemes related to development of MSMEs, such as [[Make in India]] and [[Startup India]].
==See also==
{{Portal|Banks}}
* [[List of national development banks]]


==References==
==References==
Line 65: Line 73:


==External links==
==External links==
 
* {{Official website}}
* {{Official website|http://www.sidbi.in/}}
* [https://www.mudrabank.com/ Mudra Bank website]


{{Banking in India}}
{{Banking in India}}
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[[Category:Small-scale industry in India]]
[[Category:Small-scale industry in India]]
[[Category:Microfinance in India]]
[[Category:Microfinance in India]]
[[Category:Development finance institutions]]
[[Category:National development banks|India]]
[[Category:1990 establishments in Uttar Pradesh]]
[[Category:1990 establishments in Uttar Pradesh]]
[[Category:Government agencies established in 1990]]
[[Category:Government agencies established in 1990]]

Latest revision as of 19:00, 27 November 2025


Small Industries Development Bank of India (SIDBI)
Agency overview
Formed02-April-1990; 36 years ago (02-April-1990)
TypeRegulatory Body
JurisdictionMinistry of Finance, Government of India
HeadquartersLucknow, Uttar Pradesh, India
Agency executive
Websitewww.sidbi.in

Small Industries Development Bank of India (SIDBI) is the apex regulatory body for overall licensing and regulation of micro, small and medium enterprise finance companies in India. It is under the jurisdiction of Ministry of Finance, Government of India headquartered at Lucknow and having its offices all over the country.

SIDBI was established on 02-April-1990, by Government of India, as a wholly owned subsidiary of IDBI Bank . It was delinked from IDBI w.e.f. 27-March-2000. Its purpose is to provide refinance facilities to banks and financial institutions and engage in term lending and working capital finance to industries, and serves as the principal financial institution in the Micro, Small and Medium Enterprises (MSME) sector. SIDBI also coordinates the functions of institutions engaged in similar activities. It was established in 1990,[2] through an Act of Parliament.[3] SIDBI is one of the five All India Financial Institutions regulated and supervised by the Reserve Bank of India. The other four are Exim Bank Of India, NABARD, NaBFID (https://nabfid.org/) and NHB. They play a statutory role in the financial markets through credit extension and refinancing operation activities and cater to the long-term financing needs of the industrial sector.[4]

SIDBI is active in the development of Micro Finance Institutions through SIDBI Foundation for Micro Credit, and assists in extending microfinance through the Micro Finance Institution (MFI) route.[5] Its promotion & development program focuses on rural enterprises promotion and entrepreneurship development.[6][7]

In order to increase and support money supply to the MSE sector, it operates a refinance program known as Institutional Finance program. Under this program, SIDBI extends Term Loan assistance to Banks, Small Finance Banks and Non-Banking Financial Companies. Besides the refinance operations, SIDBI also lends directly to MSMEs.[8][9]

Non-Financial Intervention[edit | edit source]

As part of non-financial intervention in the MSME sector, SIDBI had also undertaken various measures in the past. Recently, in association with credit rating agency CRISIL and Credit Information Company TransUnion CIBIL it has introduced "CriSidEx" and "MSME Pulse".[10]

CriSidEx, India's first sentiment index for micro and small enterprises (MSEs) has been developed jointly by CRISIL & SIDBI. It is a composite index based on a diffusion index of 8 parameters and measures MSE business sentiment on a scale of 0 (extremely negative) to 200 (extremely positive). The crucial benefit of CriSidEx is that its readings will flag potential headwinds and changes in production cycles and thus help improve market efficiencies. And by capturing the sentiment of exporters and importers, it will also offer actionable indicators on foreign trade.[11][12]

SIDBI in association with TransUnion CIBIL launched "MSME Pulse" and Microfinance Pulse launched by Equifax, a quarterly report on MSME credit activity, for closely tracking and monitoring the MSME segment in the country. The report is based on a study done on over five million active MSMEs who have access to formal credit, with live credit facilities in the Indian banking system.[13]

SIDBI has launched the ‘Udyami Mitra’ Portal to improve accessibility of credit and handholding services to MSMEs. They can select and apply for preferred banks through this portal. Under the portal entrepreneurs can apply for loan without physically visiting any bank branches and can select from over 1 lakh bank branches, track their application status and avail multiple loan benefits. It also has facility for uploading all necessary documents. Through the portal the MSMEs can also seek handholding support for getting finance.[14][15] SIDBI has also entered into an arrangement with CSC e-governance Services (CSCeGS) to take Udyami Mitra portal to the unserved and the underserved MSMEs. CSCeGS is a special purpose vehicle (SPV) set up by ministry of electronics and IT (MeitY) which acts as connect point for various digitally aligned services to villages in the country.[16]

In May-2024, The Small Industries Development Bank of India (SIDBI) signed a MoU with Airbus Helicopters to finance civil helicopter purchases in India.[17][18]

Other activities[edit | edit source]

SIDBI has floated several other entities for related activities, including:

  • The SIDBI Foundation for Microcredit
  • SIDBI Venture Capital Limited (SVCL)[19] – for providing Venture Capital (VC) assistance to MSMEs;
  • Micro Units Development & Refinance Agency (MUDRA) – for 'funding the unfunded' micro enterprises in the country;
  • Receivable Exchange of India Ltd. (RXIL)[20] to enable faster realisation of receivables by MSMEs;
  • SMERA Ratings Limited (SMERA)[19] – for credit rating of MSMEs, renamed as Acuite Ratings & Research Limited.;[21]
  • India SME Technology Services Ltd (ISTSL)[19] – for technology advisory and consultancy services and
  • India SME Asset Reconstruction Company Ltd. (ISARC)[19] for speedier resolution of Non-Performing Assets (NPA) in the MSME sector.

SIDBI supports the Government of India in its initiatives and work as a nodal agency for some of the schemes related to development of MSMEs, such as Make in India and Startup India.

See also[edit | edit source]

References[edit | edit source]

  1. ↑ [1]. Accessed December 2020.
  2. ↑ The Small Industries Development Bank of India act. 1989 Template:Archive url
  3. ↑ "Small Industries Development Bank of India(SIDBI) | Department of Financial Services | Ministry of Finance | Government of India". Financialservices.gov.in. Archived from the original on 23 March 2018. Retrieved 14 October 2018.
  4. ↑ "Reserve Bank of India - Publications". Rbi.org.in. Archived from the original on 12 June 2018. Retrieved 14 October 2018.
  5. ↑ "IDFC". www.idfc.org.
  6. ↑ "SIDBI's Financial Inclusion Program covers 'Poorest of the Poor' - ADFIAP". Archived from the original on 12 June 2018. Retrieved 10 June 2018.
  7. ↑ "Poorest States Inclusive Growth Programme - SIDBI UKAID DFID RFP". indiamicrofinance.com. 5 November 2022.
  8. ↑ "Establishment of Fund of Funds for funding support to Start-ups". pib.nic.in. Archived from the original on 12 June 2018. Retrieved 10 June 2018.
  9. ↑ "Shareholding :: Small Industries Development Bank of India". www.sidbi.in. Archived from the original on 12 June 2018. Retrieved 23 March 2018.
  10. ↑ "Fixed Deposits, MSME borrowing becomes easier in Indian Overseas Bank; here's how". Zee Business. 7 April 2018. Archived from the original on 17 March 2023. Retrieved 17 March 2023.
  11. ↑ Gupta, Komal (3 February 2018). "Jaitley launches CriSidEx, says economy witnessing a phase of consolidation". Archived from the original on 10 June 2018. Retrieved 10 June 2018.
  12. ↑ "CRISIL, SIDBI Launch India's First MSE Sentiment Index". pib.nic.in. Archived from the original on 12 June 2018. Retrieved 10 June 2018.
  13. ↑ "MSME's most attractive segment in commercial credit with fastest growth, low NPAs: Report". The Economic Times. 12 March 2018. Archived from the original on 12 June 2018. Retrieved 10 June 2018.
  14. ↑ "Udyami Mitra Portal".
  15. ↑ Network, Knn India - Knowledge & News. "SIDBI launches 'Udyami Mitra' portal to improve accessibility of credit for MSMEs". knnindia.co.in. Archived from the original on 12 June 2018. Retrieved 10 June 2018.
  16. ↑ "Sidbi, CSC partner to offer MSMEs better credit access". Press Trust of India. 6 March 2018 – via Business Standard.
  17. ↑ "SIDBI Takes Flight: Signs MoU with Airbus Helicopters to Finance Civil Aviation in India". Bru Times News. Archived from the original on 26 May 2024. Retrieved 26 May 2024.
  18. ↑ "Airbus Helicopters and SIDBI sign an MoU for helicopter financing in India". The Times of India. 24 May 2024. Archived from the original on 25 May 2024. Retrieved 26 May 2024.
  19. ↑ 19.0 19.1 19.2 19.3 "Small Industries Development Bank of India(SIDBI) | Department of Financial Services | Ministry of Finance | Government of India". financialservices.gov.in. Archived from the original on 18 February 2018. Retrieved 17 February 2018.
  20. ↑ "Guidelines for setting up of and operating the Trade Receivables Discounting System (TReDS)" (PDF). Guidelines for Setting up of and Operating the Trade Receivables Discounting System (TReDS). Archived (PDF) from the original on 18 February 2018. Retrieved 17 February 2018.
  21. ↑ "Acuité Ratings & Research". www.acuite.in.

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