SSC
The headquarters of the Small Industries Development Bank of India (SIDBI) is located in:
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Answer: Option D — Lucknow
Detailed Solution
The headquarters of the Small Industries Development Bank of India (SIDBI) is in Lucknow, Uttar Pradesh.
About SIDBI:
It was established on 2 April 1990 under the Small Industries Development Bank of India Act, 1989, passed by Parliament.
At first, it was a wholly owned subsidiary of the Industrial Development Bank of India (IDBI). In 2000, it was separated from IDBI.
It is now owned by the Government of India and public sector banks, insurance companies and other financial institutions.
It is the principal financial institution for the promotion, financing and development of the Micro, Small and Medium Enterprises (MSME) sector in India.
It provides refinance to banks and other lenders that give loans to small businesses, gives direct loans, and supports startups, women entrepreneurs and venture capital.
Important schemes and bodies linked with SIDBI:
MUDRA: set up in 2015 as a subsidiary of SIDBI, to refinance loans to micro units under the Pradhan Mantri MUDRA Yojana. MUDRA loans are given in three categories: Shishu (up to 50,000 rupees), Kishore and Tarun (the upper limit was raised to 20 lakh rupees in 2024, with a new "Tarun Plus" category).
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): set up in 2000 by SIDBI and the Ministry of MSME, to guarantee loans to small businesses without collateral.
"Stand-Up India" scheme (2016): loans for SC, ST and women entrepreneurs, managed by SIDBI.
"Fund of Funds for Startups" (FFS): managed by SIDBI under "Startup India" (2016).
"Udyam Assist" platform and the "PSB Loans in 59 Minutes" portal.
About MSMEs in India:
- They are classified as micro, small and medium enterprises on the basis of investment and turnover (revised in 2020 and 2025).
- The MSME sector contributes about 30 per cent of India's GDP and a large share of exports and employment.
- 27 June is observed as International MSME Day (UN).
Other development financial institutions:
- NABARD: 1982, Mumbai.
- EXIM Bank: 1982, Mumbai.
- National Housing Bank: 1988, New Delhi.
- IDBI: 1964 (now IDBI Bank).
Why not the other options?
- ✗Mumbai has the headquarters of NABARD, EXIM Bank and the RBI.
- ✗New Delhi has the headquarters of the National Housing Bank.
- ✗Kolkata has the headquarters of UCO Bank and Bandhan Bank.
Quick tip
Remember: SIDBI = Lucknow (2 April 1990; SIDBI Act 1989; for MSMEs); MUDRA (2015) is a SIDBI subsidiary; CGTMSE = 2000; NABARD and EXIM Bank = Mumbai.
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Money, Banking & RBI — Preparation
This question tests your understanding of Money, Banking & RBI, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.
This topic covers money and its functions, the banking system in India, the Reserve Bank of India and monetary policy, policy tools such as the repo rate, reverse repo rate, CRR and SLR, bank nationalisation, types of banks, and payment systems such as NEFT, RTGS and UPI. Banking exams test this topic in depth. Questions often ask when the RBI was set up (1935, on the recommendation of the Hilton Young Commission), when it was nationalised (1949), what each policy rate means, and when major banks were nationalised (14 banks in 1969 and 6 in 1980). Current policy rates change often, so check the latest RBI announcements. Practise the money, banking and RBI questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.