Which is the principal financial institution for the promotion and financing of the micro, small and medium enterprises sector?

The Small Industries Development Bank of IndiaCorrect answerYour answerThe National Housing BankCorrect answerYour answerThe Industrial Development Bank of IndiaCorrect answerYour answerThe Life Insurance Corporation of IndiaCorrect answerYour answer

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CorrectNot quiteAnswer A

Correct answer: A

SIDBI was set up in 1990 as the apex institution for small industry.
It refinances banks and lends to institutions that serve small enterprises, in the same way NABARD does for rural credit.
The National Housing Bank plays the equivalent role for housing finance.

Worth noting

SIDBI began as a subsidiary of IDBI and was made independent later.

Concept: The principal financial institution for small industry
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsRegulators and economic institutions

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Ten questions from Indian Economy & Institutions, at your own pace.

Which is the principal financial institution for the promotion and financing of the micro, small and medium enterprises sector?

Explanation