Indian banking system: Development banks: Small scale Industrial Development Bank of India (SIDBI)
The Small scale Industrial Development Bank of India (SIDBI) was set up in October 1989 under the Act of parliament as a wholly owned subsidiary of the IDBI. It is the central or apex or principal institution which oversees, co-ordinates and further strengthens various arrangements for providing financial and non-financial assistance to small-scale, tiny, and cottage industries. SIDBI objectives are: To initiate steps for technological up gradation and modernization of existing units To expand channels for marketing of SSI sector products in India and abroad To promote employment-oriented industries in semi-urban areas and to check migration of population to big cities. It operates two funds: Small Industries Development Fund and Small Industries Development Assistance Fund. The operation of the former and of National Equity Fund which were earlier looked by IDBI is now handled by the SIDBI. Its financial assistance is channeled through the existing credit delivery system comprising NSIC, Continue reading