Economics • Banking & FinanceEasy
Which statutory body in India regulates and develops the micro, small, and medium enterprise financing ecosystem through institutions like SIDBI?
A. Reserve Bank of India (RBI)
B. Small Industries Development Bank of India (SIDBI)✓ Correct Answer
C. Securities and Exchange Board of India (SEBI)
D. National Bank for Agriculture and Rural Development (NABARD)
💡 Solution & Explanation
The Small Industries Development Bank of India functions as the apex financial institution specifically mandated for promoting, financing, and developing micro, small, and medium enterprises. Other institutions like NABARD focus primarily on agricultural and rural development rather than industrial MSMEs. Established under an act of Parliament in 1990, SIDBI operates under the overall regulation of the Reserve Bank of India.
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