Sidbi financing smes
According to Quick Results of 4th, All India Census held between 2006 and 2007, the active count of MSMEs in the country, in the registered and unregistered categories, is 1.55 million and 24.55 million respectively
Under a SIDBI Act, 1989 passed in Parliament, the Small Industries Development Bank of India was established on 2nd April 1990. The charter setting up SIDBI, foresee SIDBI to be the major financial body for the marketing, financing, and development of micro, small and medium-scale enterprises or MSMEs in India. Besides playing a developmental role to micro finance bodies, it has also floated with numerous other units like SIDBI Venture Capital Ltd, Credit Guarantee Fund Trust for Micro and Small Enterprises and more.
On behalf of the orderly growth of the small scale industries, SIDBI follows four basic objectives. Those are promotion, financing, development, and coordination. The field of actions of SIDBI includes: Besides Infrastructures, direct finance processes to SSI, MSMEs and Service Sectors. Indirect finance via resource holds for the banks, NBFCs, SFCs and other central financing institutions. Endorsement of other associated institutions like Asset Reconstruction Company, Rating Agency, Venture Capital, Credit Guarantee Fund and more.
Nodal Agency for Indian Government MSME schemes like Credit Linked Capital Subsidy Scheme or CLCSS, Technology Up gradation Fund Scheme or TUFS and others.
In the latest ranking of the bankers, London, Small Industries Development Bank of India maintained its position in the top 30 development banks of the world. RBI has allowed the bank to raise its finances up to 2730 Cr. MSMEs, part of the business domain of SIDBI, contribute extensively to the national economy in terms of employment, production, and exports. Creating employment of about 7 Cr. MSME sector has been turned to be an important pillar of Indian economy. This sector has even assisted in developing over 6000 products, contributing about 45% of exports and about 49% of gross value output.