CSEET · Economic and Business Environment · Entrepreneurship Scenario
Which institution was set up to provide refinance and development support for the promotion and growth of the micro, small and medium enterprise sector through financial institutions, and is a key lender to small businesses?
SIDBI is correct because it is the principal development financial institution for promoting, financing and refinancing the MSME sector. SEBI, IRDAI and the Competition Commission are regulators of securities, insurance and competition, not development lenders to small enterprises.
- ASmall Industries Development Bank of India (SIDBI)Correct
- BSecurities and Exchange Board of India
- CInsurance Regulatory and Development Authority of India
- DCompetition Commission of India
Explanation
SIDBI is the principal financial institution for promotion, financing and development of the MSME sector. SEBI regulates securities markets, IRDAI regulates insurance and the CCI addresses anti-competitive practices, so none is a development lender for MSMEs.
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