What is the expansion of SIDBI?
VerifiedAnswer: Small Industries Development Bank of India
Explanation:
SIDBI stands for Small Industries Development Bank of India, which is a specialized financial institution dedicated to supporting the growth and development of small-scale industries in our country. This important banking institution plays a crucial role in India's economic landscape by focusing specifically on the needs of small businesses.
Established in 1990 under the Small Industries Development Bank of India Act 1989, SIDBI was created to address the unique financial requirements of small industries that often struggle to access credit from traditional commercial banks. The bank serves as the principal financial institution for promoting, financing, and developing small-scale industries across India.
The primary objectives of SIDBI include providing financial assistance to small industries, promoting employment opportunities, and contributing to balanced regional development. The bank offers various financial products and services such as term loans, working capital finance, equipment finance, and venture capital funding to help small businesses grow and expand their operations.
SIDBI operates through multiple channels including direct lending, refinancing other institutions, and working with state-level financial corporations. The bank has played a significant role in India's economic growth by supporting entrepreneurship and helping create millions of jobs in the small-scale sector. Understanding SIDBI's full form and its purpose is important for students studying Indian banking, economics, and business development, as it represents how specialized institutions can address specific sectoral needs in a developing economy.
