Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, acts as the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.

It was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India. Currently the ownership is held by 34 Government of India owned / controlled institutions.

Headquarter– Lucknow

Chairman–  Dr. Kshatrapati Shivaji


SIDBI has also floated several other entities for related activities. Credit Guarantee Fund Trust for Micro and Small Enterprises provides guarantees to banks for collateral-free loans extended to SME.

SIDBI Venture Capital Ltd. is a venture capital company focused at SME.

SME Rating Agency of India Ltd. (SMERA) provides composite ratings to SME.

Another entity founded by SIDBI is ISARC – India SME Asset Reconstruction Company in 2009, as specialized entities for NPA resolution for SME. A major challenge for the MSME sector is the need for keeping itself abreast with the changing technology to remain competitive.

To address the challenge India SME Technology Services Limited (ISTSL) was set up in November 2005 by SIDBI along with Indian Bank, Oriental Bank of Commerce, Indian Overseas Bank and State Bank of India.

Receivables Exchange of India Ltd (RXIL) is a joint venture promoted by Small Industries Development Bank of India (SIDBI) and National Stock Exchange of India Limited (NSE).

RXIL has launched India’s First Trade Receivables Discounting System (TReDS) – an online platform for financing of receivables of Micro, Small & Medium Enterprises on January 09, 2017, based on the guidelines issued by RBI on December 03, 2014.

Micro Units Development and Refinance Agency Limited (MUDRA) has been set up for ‘funding the unfunded’ micro enterprises in the country.