The Small Industries Development Bank of India (SIDBI) will raise the proposed Rs 10,000 Crore corpus for ‘Stand Up India Fund’ from Reserve Bank Of India. The Fund will be disbursed to Dalit and women entrepreneurs. As per the SIDBI Chairman & MD Kshatrapati Shivaji, It will be raised from the RBI through the priority sector lending shortfalls under the scheme announced by PM Narendra Modi.
According to that scheme each bank branch has been mandated to lend to one micro-enterprise promoted by a woman and SC and ST entrepreneur and the funds will also include one devoted for factoring, educational loans, Mudra loans of up to Rs 10 lakh and the Stand Up India loans.
SIDBI is currently working on 4 new credit guarantee funds, apart from the already operational Credit Guarantee Fund Trust for Micro and Small Enterprises which gives a cover of up to Rs 1 crore for MSME loans. The bank depends on a variety of instruments to raise resources, including certificate of deposits, commercial papers, non-convertible debentures and credit lines from external agencies.
Apart from these, SIDBI has set up a Rs 1,000 crore ‘Make in India Fund’ to refinance bank loans to the manufacturing sector. It has also committed Rs 300 crore of the Rs 10,000 crore ‘Smile Fund’ for small businesses announced earlier this year as part of the Start-Up India initiative.
Extra Info :
SIDBI Chairman & Managing Director : Dr. Kshatrapati Shivaji
SIDBI Headquarter : Lucknow
So lets discuss some questions about this post which will be beneficial in terms of all the upcoming exams :
1. Expand the term SIDBI.
2. Who is the MD & Chairman of SIDBI ?
3. What is the amount raise to proposed for Stand Up India Fund by SIDBI ?
4. Name the bank which has set up a Rs. 1,000 Cr. for Make In India Fund ?
Courtesy : Business Standard