Functions of Small Industries Development Bank of India (SIDBI)

Posted on 25-03-2016        By admin

cs professional banking law notes elective subject

Functions of Small Industries Development Bank of India (SIDBI): Over the years, the scope of promotional and developmental activities of SIDBI has been enlarged to encompass several new activities. It performs a series of functions in collaboration with voluntary organisations, non- governmental organisations, consultancy firms and multinational agencies to enhance the overall performance of the small scale sector.

 The important functions of SIDBI are discussed as follows: 

(i) Initiates steps for technology adoption, technology exchange, transfer and up gradation and modernisation of existing units.

 (ii) SIDBI participates in the equity type of loans on soft terms, term loan, working capital both in rupee and foreign currencies, venture capital support, and different forms of resource support to banks and other institutions.

 (iii) SIDBI facilitates timely flow of credit for both term loans and working capital to MSMEs in collaboration with commercial banks. 

(iv) SIDBI enlarges marketing capabilities of the products of MSMEs in both domestic and international markets.

 (v) SIDB1 directly discounts and rediscounts bills with a view to encourage bills culture and helping the SSI units to realise their sale proceeds of capital goods / equipments and components etc.

 (vi) SIDBI promotes employment oriented industries especially in semi-urban areas to create more employment opportunities so that rural-urban migration of people can be checked. 

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