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Operational Policies
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The Small Industries Development Bank of India (SIDBI), was
conceived as the principal financial institution at the apex level for
promotion, financing and development of industry in the small, tiny
and cottage sectors.
SIDBI has an overall responsibility for enacting policy and procedural
guidelines with regard to the operations of SFCs.
SIDBI has since been de-linked from IDBI after the SIDBI Act was
amended last year and as a result, 51% holding of IDBI shares in
SIDBI are in the process of being transferred to commercial banks
and all-India financial institutions. Further, IDBI's share-holding in
SFCs would also be transferred to SIDBI under the SFCs
(Amendment) Act, 2000.
All the discretionary powers hitherto vested
with IDBI in the principal Act, now vest with SIDBI under the
amended Act.