Small Industries Development Bank of India(SIDBI)
Responsible Micro Finance
- Responsible Lending has been one of the top priorities of the Bank and SIDBI’s endeavours on spearheading the issue of responsible finance amongst the assisted MFIs was initiated much before the sectoral setback seen in Andhra Pradesh. As part of its responsible finance initiative, SIDBI has created a Lenders’ Forum, comprising key MFI lenders, with a view to promote cooperation among MFI lenders for leveraging support to MFIs across the sector to promote more responsible lending practices. Pursuant to the initiatives of SIDBI, regional chapters of Lenders’ Forum have been set up for better co-ordination amongst the lenders and closer interaction with the MFIs.
- SIDBI has developed a Code of Conduct Assessment Tool, which applies to providing credit services, recovery of credit, collection of thrift etc. by MFIs to assess their degree of adherence to the voluntary Microfinance Code of Conduct adopted by the MFIs. SIDBI has also partnered with ACCION International and is supporting Smart Campaign, which is a global effort to embed a set of Client Protection Principles (CPPs) viz. - awareness about client protection, develop, disseminate and assist MFIs to implement best practices and create processes to certify MFIs as pro-client and has undertaken the following activities viz.- educating MFIs on Client Protection Principles, conducting Client Protection Assessments and Capacity Building and Strengthening Client Protection amongst assisted MFIs under the SIDBI-Smart Campaign Partnership. These initiatives are in line with the Responsible Lending agenda adopted, practiced and advocated by SIDBI and efforts are on to further mainstream these initiatives.
- Subsequent to the announcement of the Union Budget 2011-12, the “India Microfinance Equity Fund” of ` 100 crore has been set up with the primary emphasis of providing equity and quasi-equity to smaller MFIs to help them maintain growth and achieve scale and efficiency in their operations. As at the end of March 31, 2012, the Bank had committed an amount of `59.25 crore to 18 MFIs out of the `100 crore fund.
SIDBI AS NODAL AGENCY FOR GOVERNMENT SCHEMES
SIDBI extends Nodal Agency services to the Government of India for schemes sponsored by various Ministries for encouraging implementation of modernisation and technology upgradation projects by manufacturing units in the MSME sector, viz.
- Credit Linked Capital Subsidy Scheme (CLCSS) [Ministry of MSME] – Till March 31, 2012, capital subsidy claims of 9324 units aggregating ` 463 crore have been settled.
- Technology Upgradation Fund Scheme for Textile Industry (TUFS) [Ministry of Textiles] – Till March 31,2012, capital subsidy and interest incentive claims for an amount of ` 636 crore have been settled.
- Integrated Development of Leather Sector Scheme (IDLSS) [Ministry of Commerce & Industry] - Under IDLSS, cumulative claims of 1094 units aggregating ` 179 crore were settled till March 31,2012.
- Scheme of Technology Upgradation / Setting up / Modernisation / Expansion of Food Processing Industries (FPTUFS) [Ministry of Food Processing Industries] - Under FPTUFS, subsidy amounting to ` 6 crore has been released till March 31,2012 to 26 units assisted by SIDBI.
- Scheme for Technology and Quality Upgradation Programme (TEQUP) of Ministry of Micro, Small and Medium Enterprises.