Small Industries Development Bank of India: Functions, Powers and Its Role in Development of Micro, Small and Medium Enterprises
14 Pages Posted: 3 Jul 2014 Last revised: 4 Jul 2014
Date Written: July 3, 2014
Abstract
Incorporated under the SIDBI Act, 1989 the Small Industries Development Bank of India (hereinafter ‘the Bank’) was established on April 2, 1990 as the principal development financial institution for the promotion, financing and development of small scale industries, to co-ordinate the functions of the institutions engaged in the promotion, financing or developing of such industries and for matters connected therewith or incidental thereto. Though initially, it came up as a wholly owned subsidiary of the Industrial Development Bank of India (IDBI), it has become an independent financial institution with the current shareholding widely spread among various state-owned banks, insurance companies and financial institutions. Under Chapter II of the Act, SIDBI is a body corporate having perpetual succession and a common seal with power, to acquire, hold and dispose of property and to contract, and in its name can sue and be sued. The head office of the Bank is to be at Lucknow or at such other place as the Central Government may, by notification, shall specify and the Bank shall establish offices, branches or agencies at any place in or outside India.
Keywords: SIDBI, Bank, MSMEs, Functions, Powers, Duties, RBI, Developmental Role
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