SIDBI Full Form: Know All About SIDBI Here!

By Ritesh|Updated : October 28th, 2021

SIDBI Full Form: The full form of SIDBI is the 'Small Industries Development Bank of India'. If you are looking to work in the banking sector, there are very high chances of your employer testing your knowledge on the full forms of some commonly used abbreviations within the banking sector. These often refer to terms that are in use regularly in the industry, including banking institutions, techniques, tools, instruments, and rates, among others. Sometimes, banking exams may also ask questions on these abbreviations. Hence, as a banking candidate, you need to learn these abbreviations and their full forms. 

For instance, if your employer asks you for the answer to the question, 'What is the full form of SIDBI?', not only should you be able to say the full form instantly, but you should also be able to recollect some key information about SIDBI.

Table of Content

What is SIDBI?

It is the apex regulatory body responsible for licensing and regulating MSMEs (Micro, Small, and Medium Enterprises) in India. SIDBI is a wholly-owned subsidiary of the Industrial Development Bank of India (IDBI) and was established by the Government of India through a special Act of the Parliament in 1988. SIDBI became fully operational in 1990. 

Apart from learning the full form of SIDBI, it is useful to know some more essential details about SIDBI. Here are some useful facts about SIDBI:

SIDBI Quick Facts

  1. Full form of SIDBI - Small Industries Development Bank of India.
  2. SIDBI was established over 30 years ago, on the 2nd of April 1990. 
  3. SIDBI is a wholly-owned subsidiary of the Industrial Development Bank of India. 
  4. SIDBI comes under the direct supervision of the Ministry of Finance and is regulated by the Reserve Bank of India. 
  5. Not only does SIDBI provide financial help to Micro, Small, and Medium Enterprises (MSMEs) in India through the MFI route, but it also has taken several non-financial measures in the past. 
  6. Some of these non-financial interventions include its association with TransUnion CIBIL to launch MSME pulse and Microfinance pulse. It issues regular reports to monitor the situation and activities of the MSME segment in India. 
  7. SIDBI is one of the three all-India financial institutions that is directly regulated and supervised by the Reserve Bank of India. The other two financial institutions are the India Exim Bank and NABARD. NHB (National Housing Board) used to be the fourth all-India financial institution that was directly regulated and supervised by the Reserve Bank of India but was later taken over by the Government of India.
  8. SIDBI plays a pivotal role in the growth of Microfinance institutions, with the help of a special foundation called ‘SIDBI Foundation for Micro Credit.
  9. SIDBI is primarily known for its refinancing operations, known as the Institutional Finance Program. SIDBI provides term loan assistance to banks, small finance banks, and NBFCs (Non-Banking Financial Companies).
  10. SIDBI also offers direct lending to the businesses categorized as MSMEs in India. 
  11. SIDBI has six other entities floated for helping in incidental activities. This includes: 
    1. SIDBI Venture Capital Ltd (SVCL) - provides VC assistance to MSMEs.
    2. Micro Units Development and Refinance Agency (MUDRA) - to provide funding to the 'unfunded' micro-enterprises of the country.
    3. Receivable Exchange of India Ltd (RXIL) - an agency that enables the fast realization of receivables for MSMEs. 
    4. SMERA Ratings Limited - renamed as Acute Ratings and Research Limited, a credit rating agency for MSMEs.
    5. India SME Technology Service Limited (ISTSL) - an agency providing technology advisory and consultancy services.
    6. India SME Asset Reconstruction Company (ISARC) - an agency helping in the speedy resolution of NPAs in the MSME sector.

We hope this information was useful to you. Like the full form of SIDBI, you can learn from others our articles. This would be extremely beneficial for a banking exam.

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FAQs

  • The full form of SIDBI is the Small Industries Development Bank of India.

  • SIDBI is headquartered in the city of Lucknow, Uttar Pradesh.

  • SIDBI is led by Mr Sivasubramanian Ramann, who acts as the Chairman and MD of the Board.

  • SIDBI, in association with the Credit rating agency CRISIL, came up with a compost index based on a diffusion index of 8 parameters. This rating is used to indicate the health of the MSME sector, with 0 being the worst and 200 being the best.

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