Tag: funding and assistance to small businesses

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Multiple choice organisation of commerce and management micro, medium and small enterprises (msmes) nabard and kvic funding and assistance to small businesses privileges and other promotional measures for msmes world bank

NABARD has taken over the entire functions of________.

  1. ARDC

  2. ACD of RBI

  3. RPCD of RBI

  4. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Reserve Bank of India (RBI) set up the Agricultural Refinance Corporation (ARC) in 1963 to work as a refinancing agency in providing medium term and long term agricultural credit to support investment credit needs for agricultural development. In 1975, ARC was renamed as Agriculture Refinance and Development Corporation (ARDC) to give focussed attention to credit offtake, development and promotion of the agricultural sector.
 Upon its formation in 1982, NABARD took over the functions of the erstwhile Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of RBI and ARDC.
Multiple choice organisation of commerce and management micro, medium and small enterprises (msmes) nabard and kvic funding and assistance to small businesses privileges and other promotional measures for msmes world bank

SIDBI is set up in ____ as a wholly owned subsidiary of ______.

  1. 1985 - EXIM

  2. 1969 - RRBS

  3. 1975 - IFCI

  4. 1990 - IDBI
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The SIDBI (Small Industries Development Bank of India) is a wholly owned subsidiary of IDBI (Industrial Development Bank of India), established under the special Act of the Parliament 1988 which became operative from April 2, 1990. 

Multiple choice organisation of commerce and management micro, medium and small enterprises (msmes) nabard and kvic funding and assistance to small businesses privileges and other promotional measures for msmes world bank

The SIDBI was established in _________.

  1. April, 1980

  2. April, 1985

  3. April, 1990

  4. April, 1995
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

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

Multiple choice organisation of commerce and management micro, medium and small enterprises (msmes) nabard and kvic funding and assistance to small businesses privileges and other promotional measures for msmes world bank

Which one among the following has not started Commercial Banking?

  1. SIDBI

  2. IDB

  3. ICICI

  4. UTI
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

It is a public financial institution which lends for longer periods.A bank is defined as an institution which accepts deposits for the purpose of lending and investment.  Further, Banks lend for shorter durations. SIDBI does not accept deposits and hence it is a financial institution not a commercial bank.

Multiple choice organisation of commerce and management micro, medium and small enterprises (msmes) nabard and kvic funding and assistance to small businesses privileges and other promotional measures for msmes world bank

____ Indian Aspiration Fund was launched by ___ in August 2015 to boost the start-up funds ecosystem in the country.

  1. Rs. 5,000 Crore; IDBI

  2. Rs. 2,000 Crore; SIDBI

  3. Rs. 2,000 Crore; RBI

  4. Rs. 3,500 Crore; ICICI
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In order to boost the startup ecosystem in the country, finance minister Arun Jaitley has announced the launch of India Aspiration Fund (IAF) with an initial corpus of Rs. 2,000 crore. IAF is managed by Small Industries Development Bank of India (SIDBI) for promotion, financing and development of micro, small and medium enterprises (MSME) sector.

Multiple choice organisation of commerce and management micro, medium and small enterprises (msmes) nabard and kvic funding and assistance to small businesses privileges and other promotional measures for msmes world bank

Branch office kind of business form __________________.

  1. can undertake any acctivity

  2. can undertake activity which is specifically permitted.

  3. can work without being registered with Registrar of Companies.

  4. can not carry on research work.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A branch office is an extension of the parent company and can only perform activities that are specifically permitted by the regulatory authority (like the RBI in India). It is not an independent legal entity and must be registered.

Multiple choice organisation of commerce and management micro, medium and small enterprises (msmes) nabard and kvic funding and assistance to small businesses privileges and other promotional measures for msmes world bank

Major activity(ies) of SIDBI is/are __________.

  1. Refinancing loans

  2. Extension of seed capital

  3. Development of industrial areas

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Major Activities of SIDBI
  • SIDBI refinances loans extended by the primary lending institutions to small scale industrial units, and also provides resources support to them.
  • SIDBI discounts and rediscounts bills arising from sale of machinery to or manufactured by industrial units in the small scale sector.
  • To expand the channels for marketing the products of Small Scale Industries (SSI) sector in domestic and international markets.
  • It provides services like leasing, factoring etc. to industrial concerns in the small scale sector.
  • To promote employment oriented industries especially in semi-urban areas to create more employment opportunities and thereby checking migration of people to urban areas.
  • To initiate steps for technological up-gradation and modernisation of existing units.
  • SIDBI facilitates timely flow of credit for both term loans and working capital to SSI in collaboration with commercial banks.
Multiple choice organisation of commerce and management micro, medium and small enterprises (msmes) nabard and kvic funding and assistance to small businesses privileges and other promotional measures for msmes world bank

SIDBI is a subsidiary of ____________.

  1. IDBI

  2. Union Bank

  3. RBI

  4. NABARD
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The SIDBI (Small Industries Development Bank of India) is a wholly owned subsidiary of IDBI (Industrial Development Bank of India). It is established under the Special Act of the Parliament 1988 that became operative since April 2, 1990.

Responsibility of administering Small Industries Development Fund and National Equity Fund that were earlier administered by IDBI were transferred to SIDBI. It is the Primary Financial Institution for promoting, developing and financing MSME (Micro, Small and Medium Enterprise) sector.

Multiple choice organisation of commerce and management micro, medium and small enterprises (msmes) nabard and kvic funding and assistance to small businesses privileges and other promotional measures for msmes world bank

SIDBI Start-Up Mitra is the digital initiative that facilitates the entrepreneurs to engage with incubators, investors, mentors etc.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True

SIDBI Startup Mitra
SIDBI Start-Up Mitra is a digital initiative that address gaps in the start-up ecosystem. The portal was launched by the Hon’ble President of India on March 17th, 2016. It acts as a virtual platform to bring together all stakeholders, start-up entrepreneurs, incubators, investors (Angel networks / Venture Capital Funds), industry bodies, mentors /advisors and banks to meet the financing and developmental needs of the early stage start-ups and enterprises

The portal also facilitates entrepreneurs to engage with incubators, investors, mentors and spreads awareness about the government schemes for start-ups in India by becoming the knowledge partner for State and Central Governments. The portal is supported by the Department of Science and Technology [DST], Govt. of India and currently boasts of more than 10,245 start-ups, 118 incubators and 90 investors as registered members on the platform

Multiple choice organisation of commerce and management micro, medium and small enterprises (msmes) nabard and kvic funding and assistance to small businesses privileges and other promotional measures for msmes world bank

The Scheme launched for Technology up-gradation of Micro and Small Enterprises is ________.

  1. Credit Linked Capital Subsidy Scheme

  2. Deendayal Antyodaya Yojana

  3. Dairy Entrepreneurship Development Scheme

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
 The Ministry of Small Scale Industries (SSI) is operating a scheme for technology upgradation of Small Scale Industries (SSI) called the Credit Linked Capital Subsidy Scheme (CLCSS). The Scheme aims at facilitating technology upgradation by providing upfront capital subsidy to SSI units, including tiny, khadi, village and coir industrial units, on institutional finance (credit) availed of by them for modernisation of their production equipment (plant and machinery) and techniques.