Which institution set up in 1990 under an Act of the Indian Parliament, acts as the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector?
Small Industries Development Bank of India
The Small Industries Development Bank of India (SIDBI) was established on 2 April 1990 under the SIDBI Act, 1989, with its headquarters in Lucknow.
It is the principal financial institution for the promotion, financing and development of the MSME sector and coordinates the work of other institutions in this area; it also manages schemes such as MUDRA refinance.
NABARD (1982) serves agriculture and rural development; IDBI (1964) was set up for industrial finance in general and is now a bank; ICICI began in 1955 as an industrial credit corporation and is a private bank today.
Hence, the answer is Small Industries Development Bank of India.
Similar Questions
Which of the following correctly evaluates the two statements regarding the Industrial Development Bank of India (IDBI) before its conversion into a banking company in 2004?
Statement I: IDBI was entrusted with the responsibility of coordinating the activities of other developmental financial institutions.
Statement II: The Industrial Development Bank of India (IDBI) was established in 1964 by the Government of India under the Industrial Development Bank of India Act, 1964, as a wholly owned subsidiary of the Reserve Bank of India (RBI). In 1976, the ownership of IDBI was transferred to the Government of India.
Important Questions from Money and Banking
Which one of the following is likely to be the most inflationary in its effects?
Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?
Consider the following statements :
The effect of devaluation of a currency is that it necessarily
1. improves the competitiveness of the domestic exports in the foreign markets
2. increase the foreign value of domestic currency
3. improves the trade balance
Which of the above statements is/are correct?
Indian Government Bond Yields are influenced by which of the following?
1. Actions of the United States Federal Reserve
2. Actions of the Reserve Bank of India
3. Inflation and short-term interest rates
Select the correct answer using the code given below.
With reference to “Urban Cooperative Banks" in India, consider the following statements :
1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966
Which of the statements given above is/are correct?
