Module: General Practice
Q58: In January 2026, the Union Cabinet approved a significant equity infusion into the Small Industries Development Bank of India (SIDBI). Which of the following statements accurately reflect this decision?
The total approved equity infusion is Rupees 5,000 crore.
The infusion will be completed in a single tranche in FY 2026.
The objective is to maintain a healthy Capital to Risk-weighted Assets Ratio (CRAR) as SIDBI expands its direct lending.
The infusion will be completed in a single tranche in FY 2026.
The objective is to maintain a healthy Capital to Risk-weighted Assets Ratio (CRAR) as SIDBI expands its direct lending.
✅ Correct Answer: B
The infusion is for Rupees 5,000 crore (Statement 1) and is aimed at CRAR maintenance (Statement 3), but it is not a single tranche (Statement 2 is false). The infusion will be spread over three financial years: Rupees 3,000 crore in FY 2025-26, Rupees 1,000 crore in FY 2026-27, and Rupees 1,000 crore in FY 2027-28.
This capital is required because SIDBI is aggressively expanding its direct digital lending to MSMEs, which increases its Risk-Weighted Assets (RWA).
This capital is required because SIDBI is aggressively expanding its direct digital lending to MSMEs, which increases its Risk-Weighted Assets (RWA).