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NABARD & SIDBI

Banking / Economy Awareness · Institutions, Markets & Economy

Overview

Development finance institutions support specific sectors: NABARD for agriculture and rural development, SIDBI for micro, small and medium enterprises.

Key points

NABARD was set up on 12 July 1982; headquarters in Mumbai; apex body for agriculture and rural credit.
NABARD refinances RRBs and cooperative banks and manages the Rural Infrastructure Development Fund (RIDF).
SIDBI was set up on 2 April 1990; headquarters in Lucknow; principal institution for MSME finance.
EXIM Bank (1982) supports foreign trade; NHB (1988) supports housing finance.
NABARD also supervises RRBs and cooperative banks.

Explanation

SIDBI refinances banks lending to MSMEs and supports MUDRA.
NABARD promotes self-help group–bank linkage.
Development finance institutions focus on long-term and sectoral credit.
NaBFID (2021) finances infrastructure.

Step by step

Identify the institution, rule or instrument asked.
Recall its definition, year, limit or function from a table.
Eliminate options from similar institutions or older rules.

Examples

SIDBI headquarters → Lucknow.
NABARD was established in → 1982.
The institution that manages RIDF → NABARD.

Traps and advanced points

Trap: Putting SIDBI in Mumbai.
Trap: Mixing NABARD (1982) and SIDBI (1990).
Trap: Thinking SIDBI funds agriculture.

Quick revision

NABARD 1982 Mumbai, rural.
SIDBI 1990 Lucknow, MSME.
EXIM 1982, NHB 1988.

Practice MCQs

NABARD was set up on —
1. 2 April 1990
2. 1 April 1935
3. 1 January 1949
4. 12 July 1982
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Answer: (d) 12 July 1982. 1982.
NABARD’s headquarters is in —
1. Mumbai
2. Lucknow
3. New Delhi
4. Hyderabad
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Answer: (a) Mumbai. Mumbai.
SIDBI was set up on —
1. 12 July 1982
2. 2 April 1990
3. 1 April 1988
4. 1975
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Answer: (b) 2 April 1990. 1990.
SIDBI’s headquarters is in —
1. Kolkata
2. Chennai
3. Mumbai
4. Lucknow
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Answer: (d) Lucknow. Lucknow.
SIDBI is the principal institution for —
1. exports
2. MSME finance
3. agriculture credit
4. housing
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Answer: (b) MSME finance. MSMEs.
NABARD manages the —
1. Mudra fund only
2. Rural Infrastructure Development Fund
3. National Pension System
4. Sensex
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Answer: (b) Rural Infrastructure Development Fund. RIDF.
EXIM Bank supports —
1. foreign trade
2. housing
3. agriculture
4. pensions
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Answer: (a) foreign trade. Exports and imports.
NHB was set up in 1988 to support —
1. housing finance
2. exports
3. insurance
4. stocks
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Answer: (a) housing finance. Housing.
NABARD refinances —
1. stock exchanges
2. insurance firms
3. RRBs and cooperative banks
4. foreign banks
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Answer: (c) RRBs and cooperative banks. Rural lenders.
EXIM Bank was set up in —
1. 1990
2. 1975
3. 1982
4. 1988
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Answer: (c) 1982. 1982.