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.The SIDBI was established on April 2, 1990, by Government of India, as a wholly owned subsidiary of IDBI Bank . It was delinked from IDBI w.e.f. March 27, 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 1989,[2] through an Act of Parliament.[3]
Small Industries Development Bank of India (SIDBI)
SIDBI is one of the four All India Financial Institutions regulated and supervised by the Reserve Bank of India; other three are India Exim Bank, NABARD and 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.[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]
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.[11] And by capturing the sentiment of exporters and importers, it will also offer actionable indicators on foreign trade.[12][13]
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.[14]
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.[15][16] 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.[17]
Other activitiesEdit
SIDBI has floated several other entities for related activities, including:
India SME Technology Services Ltd (ISTSL)[18] - for technology advisory and consultancy services and
India SME Asset Reconstruction Company Ltd. (ISARC)[18] 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.
^"Small Industries Development Bank of India(SIDBI) | Department of Financial Services | Ministry of Finance | Government of India". Financialservices.gov.in. Retrieved 14 October 2018.
^"Reserve Bank of India - Publications". Rbi.org.in. Retrieved 14 October 2018.
^Network, Knn India - Knowledge & News. "SIDBI launches 'Udyami Mitra' portal to improve accessibility of credit for MSMEs". knnindia.co.in.
^"Sidbi, CSC partner to offer MSMEs better credit access". Press Trust of India. 6 March 2018 – via Business Standard.
^ abcd"Small Industries Development Bank of India(SIDBI) | Department of Financial Services | Ministry of Finance | Government of India". financialservices.gov.in. Retrieved 17 February 2018.
^"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).
small, industries, development, bank, india, major, contributor, this, article, appears, have, close, connection, with, subject, require, cleanup, comply, with, wikipedia, content, policies, particularly, neutral, point, view, please, discuss, further, talk, p. A major contributor to this article appears to have a close connection with its subject It may require cleanup to comply with Wikipedia s content policies particularly neutral point of view Please discuss further on the talk page June 2018 Learn how and when to remove this template message 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 The SIDBI was established on April 2 1990 by Government of India as a wholly owned subsidiary of IDBI Bank It was delinked from IDBI w e f March 27 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 1989 2 through an Act of Parliament 3 Small Industries Development Bank of India SIDBI Agency overviewFormed2 April 1990 33 years ago 1990 04 02 TypeRegulatory BodyJurisdictionMinistry of Finance Government of IndiaHeadquartersLucknow Uttar Pradesh IndiaAgency executiveSivasubramanian Ramann IA amp AS Chairman amp MD 1 Websitewww wbr sidbi wbr inSIDBI is one of the four All India Financial Institutions regulated and supervised by the Reserve Bank of India other three are India Exim Bank NABARD and 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 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 amp 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 Contents 1 Non Financial Intervention 2 Other activities 3 References 4 External linksNon Financial Intervention EditAs 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 amp 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 11 And by capturing the sentiment of exporters and importers it will also offer actionable indicators on foreign trade 12 13 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 14 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 15 16 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 17 Other activities EditSIDBI has floated several other entities for related activities including The SIDBI Foundation for Microcredit SIDBI Venture Capital Limited SVCL 18 for providing Venture Capital VC assistance to MSMEs Micro Units Development amp Refinance Agency MUDRA for funding the unfunded micro enterprises in the country Receivable Exchange of India Ltd RXIL 19 to enable faster realisation of receivables by MSMEs SMERA Ratings Limited SMERA 18 for credit rating of MSMEs renamed as Acuite Ratings amp Research Limited 20 India SME Technology Services Ltd ISTSL 18 for technology advisory and consultancy services and India SME Asset Reconstruction Company Ltd ISARC 18 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 References Edit 1 Accessed December 2020 https legislative gov in sites default files A1989 39 pdf bare URL PDF Small Industries Development Bank of India SIDBI Department of Financial Services Ministry of Finance Government of India Financialservices gov in Retrieved 14 October 2018 Reserve Bank of India Publications Rbi org in Retrieved 14 October 2018 IDFC www idfc org SIDBI s Financial Inclusion Program covers Poorest of the Poor ADFIAP Poorest States Inclusive Growth Programme SIDBI UKAID DFID RFP indiamicrofinance com Establishment of Fund of Funds for funding support to Start ups pib nic in Shareholding Small Industries Development Bank of India www sidbi in Fixed Deposits MSME borrowing becomes easier in Indian Overseas Bank here s how Zee Business 7 April 2018 Retrieved 17 March 2023 Privacy Policy 27 January 2023 Retrieved 17 March 2023 Gupta Komal 3 February 2018 Jaitley launches CriSidEx says economy witnessing a phase of consolidation CRISIL SIDBI Launch India s First MSE Sentiment Index pib nic in MSME s most attractive segment in commercial credit with fastest growth low NPAs Report 12 March 2018 via The Economic Times Udyami Mitra Portal Network Knn India Knowledge amp News SIDBI launches Udyami Mitra portal to improve accessibility of credit for MSMEs knnindia co in Sidbi CSC partner to offer MSMEs better credit access Press Trust of India 6 March 2018 via Business Standard a b c d Small Industries Development Bank of India SIDBI Department of Financial Services Ministry of Finance Government of India financialservices gov in Retrieved 17 February 2018 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 Acuite Ratings amp Research www acuite in External links Edit Banks portalOfficial website Mudra Bank website Retrieved from https en wikipedia org w index php title Small Industries Development Bank of India amp oldid 1146403481, wikipedia, wiki, book, books, library,
