SIDBI Full Form- Small Industries Development Bank of India

What is SIDBI? The full form of SIDBI is Small Industries Development Bank of India. The supreme regulatory agency for general licensing and oversight of micro, small, and medium enterprise finance organizations in India is the Small Industries Development Bank of India (SIDBI). 

It is governed by the Ministry of Finance of the Government of India, which has offices around the nation and its headquarters in Lucknow. The Indian Parliament passed a law on April 2, 1990, creating the Small Industries Development Bank of India (SIDBI), which serves as the primary financial institution for the development, financing, and promotion of the Micro, Small, and Medium-Sized Enterprise (MSME) sector. It also coordinates the operations of other institutions involved in related activities. 

Vision and Mission of SIDBI

Vision: To establish SIDBI Brand as the go-to and customer-friendly institution, to become a single point of contact for the MSME sector's financial and developmental needs in order to make it robust, dynamic, and globally competitive, and to increase shareholder wealth and the highest corporate values through the use of cutting-edge technology platforms.

Mission: To bridge the financial and developmental gaps in the MSME ecosystem and enhance the flow of credit to MSMEs. 

Roles of SDBI

The 1990 Parliamentary Act established the Small Industries Development Bank of India. It is SIDBI's responsibility to carry out the triple goal of developing, financing, and promoting the MSME sector while coordinating the operations of other institutions involved in related activities. The mandate of the bank is executed through:

• Based on the multiplier effect and wider reach, indirect lending is provided to the MSME sector by banks, SFBs, NBFCs, MFIs, and New Age Fintechs.
• Through creative and demonstrative lending products, which can be further scaled up by the credit delivery ecosystem, direct lending seeks to close the credit gaps currently present in the MSME sector.
• By providing funding to up-and-coming firms via the Fund of Funds channel, Fund of Funds enhances the culture of entrepreneurship.
• Development and Promotion: Through credit-plus programs, entrepreneurship is encouraged and aspiring business owners are supported in their efforts to develop the MSME sector holistically.
• Facilitator: serving in a facilitation capacity as a Nodal Agency for government programs targeted at SMEs.

Ecosystem of SIDBI

Subsidiary Networks: In order to create value and establish a solid financial foundation for the expansion and advancement of the MSME sector in the nation, SIDBI implemented the SIDBI PLUS Approach, which encourages the establishment of strong networks of affiliates and subsidiaries that are crucial to achieving the goals of inclusive growth. 

These subsidiaries have been carefully diversified to reach out to MSMEs and start-ups at various growth curves and fulfill their conventional as well as unconventional needs. A single goal unites all of these initiatives: to create value, accelerate growth, and maximize the financial, social, and environmental benefits for all parties involved. Some are standalone SIDBI projects, while others are the result of alliances with multiple state and international organizations.

Funds of funds: In accordance with the Start-up India Action Plan, the Hon. Prime Minister launched the Fund of Funds for Start-ups (FFS) on January 16, 2016. A corpus of Rs 10,000 crore has been granted for contributions to different Alternative Investment Funds (AIFs) that are SEBI-registered. FFS was established with the specific goal of assisting in the development and expansion of businesses driven by innovation. By allowing start-ups to participate in the capital of Alternative Investment Funds registered with SEBI, FFS meets their funding needs. AIFs funded by FFS are required to invest in startups as defined by the Indian government under the Startup India, Standup India plan by investing at least twice as much as their FFS contribution. February 19, 2019 Gazette Notification G.S.R.127 (E), as revised from time to time.