Development, All India and Specialized Financial Institutions

SIDBI (Small Industries Development Bank of India)

• Establishment: April 2, 1990, under an Act of Indian Parliament.
• Primary Role: Acts as the Principal Financial Institution for the Micro, Small and Medium Enterprise (MSME) sector. Coordinates functions of institutions engaged in similar activities.

Key Functions of SIDBI

1. Aiding Financial Institutions: Supports cooperation and commercial banks lending to small-scale industries in the MSME sector to ensure their financial health.
2. Direct Loans: Provides direct loans to companies in the MSME sector.
3. Global Marketing Initiatives: Carries out marketing for small-scale industries on a global scale.
4. Venture Funding: Offers venture funding options for industries in the MSME sector.
5. Employment Promotion: Focuses on promoting employment-oriented industries in the small-scale sector.
6. Technology Upgradation: Ensures technology upgradation in the small-scale industry.
7. Financial Health Maintenance: Ensures the financial health of cooperative and commercial banks lending to small-scale industries.
8. Venture Fund Promotion: Promotes venture funds for development.

EXIM Bank (Export-Import Bank of India)

• Role: Premier export finance institution, integrating foreign trade and investment with India's economic growth.
• Board Composition: Includes senior policy makers, expert bankers, leading industry players, and professionals in exports, imports, and financing.
• Presence: Offices across India and in select global locations.

Key Functions of EXIM Bank

1. Financing Exim Trade: Facilitates export and import of services and goods, including machine exports and imports.
2. Refinancing Services: Helps in refinancing bank services and other institutions for foreign trade.
3. International Business Support: Provides financial support for businesses abroad, including joint ventures.
4. Technical Asset Finance: Offers finance for technical assets to exporters and importers.
5. Merchant Navy Banks: Supports the export and import functions of Merchant Navy Banks.
6. Equity Participation: Plays a role in writing shares, bonds, stocks, and debentures in foreign company trades.
7. Short-term Loans: Offers LOCS and short-term loans to foreign governments and banks.
8. Cooperative Bank Finance: Provides finance to cooperative banks.
9. Business Advisory Services: Offers business advisory services.
10. Project Funding Abroad: Funds foreign country projects.
11. Globalization Support: Partners with Indian industries in their globalization efforts.