Economics • Banking & FinanceEasy
Which of the following specialized financial institutions in India was established with the specific mandate of providing refinance facilities for micro, small, and medium enterprises (MSMEs)?
A. National Bank for Agriculture and Rural Development (NABARD)
B. Small Industries Development Bank of India (SIDBI)✓ Correct Answer
C. Export-Import Bank of India (EXIM Bank)
D. National Housing Bank (NHB)
💡 Solution & Explanation
The Small Industries Development Bank of India was established under an Act of Parliament in April 1990 to act as the principal financial institution for promoting and financing the micro, small, and medium enterprise sector. Institutions like NABARD focus primarily on agriculture and rural development, whereas EXIM Bank handles international trade financing. SIDBI operates under the administrative control of the Ministry of Finance.
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