Module: General Practice
Q57: Which financial institution, established under an Act of Parliament in 1990, serves as the Principal Financial Institution for the promotion, financing, and development of the MSME sector?
✅ Correct Answer: C
Correct Option: C Concept: Small Industries Development Bank of India (SIDBI). Establishment: Set up on April 2, 1990, under the SIDBI Act.
Headquarters: Lucknow.
Mandate: It is the Apex Body for MSME licensing and financing.
Key Functions: 1. Refinance: It provides bulk funds to banks and NBFCs to lend to MSMEs.
2. Direct Finance: It offers direct loans for specific needs like energy efficiency.
3. Promotion: It manages major funds like the Micro Units Development and Refinance Agency (MUDRA) and the Credit Guarantee Fund.
Headquarters: Lucknow.
Mandate: It is the Apex Body for MSME licensing and financing.
Key Functions: 1. Refinance: It provides bulk funds to banks and NBFCs to lend to MSMEs.
2. Direct Finance: It offers direct loans for specific needs like energy efficiency.
3. Promotion: It manages major funds like the Micro Units Development and Refinance Agency (MUDRA) and the Credit Guarantee Fund.