Answer the following.
1) Write important features of SIDBI.
Important features of SIDBI are as follows:
1. Sustainable Development: SIDBI is working towards the sustainable development of MSMEs in India. It helps MSMEs in the creation of economic wealth while preventing the ecological wealth of the country. It promotes a culture of energy-efficient and sustainable finance. It helps to reduce the emission of greenhouse gases to contribute to a reduction in pollution.
2. Nodal/Implementing Agency: SIDBI has been assigned the role of nodal agency by the Government of India. It helps in implementing various subsidy schemes for MSMEs. These schemes help in up-gradation, modernization, and expansion of the business.
3. Financial Institute for Promotion of MSMEs: SIDBI is established to provide short term and long term finance to the MSMEs. It provides refinance to Banking and Non-banking Financial Companies to increase the supply of credit to MSMEs. SIDBI cater to the specific needs of Indian MSMEs that are not fulfilled through traditional sources of finance.
4. Advisory Function: SIDBI also works as an advisor and mentor for MSMEs. It helps MSMEs in expanding marketing channels for the products both in the domestic as well as international markets. It also initiates steps for modernization and technological up-gradation of current units.
5. Forms Of Finance: SIDBI offers the following facilities to its customers:
(a) Direct Finance,
(b) Indirect Finance,
(c) Micro Finance
6. Digital Initiatives:
(a) SIDBI Startup Mitra: It brings together all stakeholders, start-up entrepreneurs, incubators, investors, industry bodies, mentors and advisors, and banks at one platform. It helps in financing and development of new entrepreneurs It also works as a knowledge partner for State and Central Government.
(b) Udyami Mitra: This is the portal launched by SIDBI to improve the accessibility of credit and handholding services to MSME’s. Under this portal, entrepreneurs can apply for a loan without physically visiting any bank branches. The entrepreneurs can select and apply for preferred banks, they can select a suitable branch, track their application status an avail multiple loan benefits.
7. Achievement of National Goals: SIDBI helps in poverty alleviation and employment generation by financing MSMEs. It promotes entrepreneurship and fosters competitiveness in the MSME sector. It promotes entrepreneurship among women and the economically weaker sections of society.
8. Services of MSMEs: SIDBI provides different types of financial and non-financial services through its associates and subsidiaries. These associates and subsidiaries are as follows: SIDBI Ventures Capital Ltd. Credit Guarantee Fund Trust for Micro and Small Enterprises. SME Rating Agency of India Ltd. India SME Technology Services Limited India SME Asset Reconstruction Company Ltd. Micro Units Development & Refinance Agency
2) Write important features of NABARD.
Important features of NABARD are as follows:
1. Financing Rural Industries: It plays an important role in providing refinance for small scale industries and other village and cottage industries. It provides loans to commercial and co-operative banks to promote rural employment. It organizes skill and entrepreneurship development programs to promote an entrepreneurial culture among rural youth and encourage them to start enterprises in rural areas.
2. Assistance to Financial Institutes: It plays an important role in preparing and developing action plans for Co-operative Banks and Regional Rural Banks. It also monitors the implementation of the developmental action plans of these banks. It provides financial assistance to co-operative banks for building improved Management Information System, computerization of operations, and development of human resources.
3. Refinancing Facilities: It provides refinancing facilities to State Co-operative Banks (SCBs), Land Development Banks (LDBs), Regional Rural Banks (RRBs), and other approved financial institutions for financing rural economic activities. It also provides short-term, medium-term, and long term credit to these institutes.
4. Credit for Rural Development: It takes initiative in the development and promotion of different activities in rural areas by providing funds to the State government. It also works on the improvement of small and minor irrigation by way of promoting agricultural activities.
5. Apex Bank: NABARD acts as an apex bank for meeting the credit needs of all types of financial institutions working in the field of agricultural and rural development. It works to frame policies and guidelines for rural financial institutions in India. It provides credit facilities to institutes working in agricultural finance.
6. Recommendations to Reserve Bank of India: It provides recommendations to Reserve Bank of India: on the issue of licenses to Co-operative Banks, the opening of new branches by State Co-operative Banks and Regional Rural Banks.
7. Development of Nation: It plays an important role m the Improvement of storage facilities for agricultural commodities by promoting the development of warehousing facilities. It also promotes the export of agricultural commodities. It plays a key role in the sustainable development of the country through the Green, Blue, and White revolution.
8. Supervision of Financial Institutes Engaged in Agricultural Finance: It undertakes inspection of Regional Rural Banks and Co-operative Banks as per the guidelines of Banking Regulation Act,1949. It can also undertake an inspection of State 00operative Agriculture and Rural Development Banks and apex non-credit co-operative societies on a voluntary basis.
3) Write important features of KVIC.
Important features of KVIC are as follows:
1. Research and Development: To face the challenge of globalisation, KVIC has introduced a number of new products range like khadi denim Jeans to cater to the need of the market. The KVIC undertakes training of sales staff for the effective marketing of the products. KVIC is taking several steps to set standards of quality to ensure the genuineness of the khadi products. KVIC signed a Memorandum of Understanding with the National Institute of Design to provide design support, services in packaging, marketing, communication, publicity, disseminating materials, and other design-related activities.
2. Other Functions: The KVIC is charged with the planning, promotion, organization, and implementation of programs for the development of Khadi and other village industries in the rural area. It organizes a training programme for artisans engaged in Khadi and Village Industries.
3. Marketing Promotion: In order to attract the younger generation, the KVIC is holding exhibitions, seminars, lectures in universities and colleges to disseminate knowledge of KVIC products. KVIC has also launched a massive marketing development plan to generate interest, awareness, and attraction amongst masses.
4. Financial Assistance: It finances the projects for rural industrialization and also provides for margin money by way of subsidy. There are provisions for a higher rate of subsidies in the case of beneficiaries of the weaker section, tribal areas, and backward regions. KVIC also provides financial assistance to institutions and individuals for the development and operation of the Khadi and Village industries.
5. Rural Development: The Khadi and Village Industries plays an important role in the development of the Indian economy, particularly in the development of rural areas. KVIC facilitates the proper utilization of natural resources in rural India for generating income for the rural masses.
6. Employment Generation: Due to the increasing workforce, it is necessary to create employment opportunities. KVIC is labour intensive in nature. The broader objective of KVIC is to promote non-farm employment opportunities in rural areas.
7. Entrepreneurship Development: KVIC helps to provide additional livelihood avenues to the village communities. KVIC generate self-employment opportunities through establishment of micro-enterprises by organizing traditional artisans and unemployed youth.
4) Write important features of SHGs.
Important features of SHGs are as follows:
1. Formation: It is generally formed by NGOs or team of the government. It is an informal group. It is recognized by the government and does not require any formal registration, SHGs have well-defined rules and by-laws, hold regular meetings, and maintain records.
2. Membership: As per the National Urban Livelihood Mission at least 5 members are required. It is difficult to manage a bigger group and members cannot actively participate from one family only one person can become a member so that more families can participate. Mixed groups are generally not preferred.
3. Entrepreneurship Development: The poor individuals in rural areas face scarcity of capital and managerial skills. SHGs provide them capital at a low-interest rate which gives them the opportunity to start micro-enterprise. These microenterprises use untapped manpower in the area which generates employment opportunities in rural areas.
4. Collateral Free Loan: SHGs provide small loans to poor individuals for undertaking self-employment projects. Loans are given on the principle of mutual trust and either minimum or no documentation is required to get a loan. The rate of interest differs from group to group and it is a little higher than the interest charged by banks. It ensures timely repayment of loans as all members of the group are responsible for collecting repayment amount from the members who borrowed the loan.
5. Democratic Setup: SHG is a group of members, for the members and by the members. It is the group that reflects people’s real participation in the process of development. Members elect or select leaders for the proper functioning of the group. The leader is responsible for holding regular meetings and maintaining records and accounts of the group.
6. Empowerment of Women: SHG is an emerging tool for the socio-economic development of women all over the world. SHGs are working effectively in promoting women entrepreneurs. SHGs empower women by providing their knowledge, finance, and opportunities.
7. Saving Habits: The SHG encourages small saving habits at regular intervals among its members. The Self Help Group inculcates the thrift and savings habit among the members of each group.
8. Mutual trust: Most of the Indian villages are facing challenges such as poverty, illiteracy, lack of skills, health care, etc. The basic philosophy of forming SHGs is to overcome individual shortcomings and weaknesses with collective efforts. Through mutual trust, thousands of the poor and marginalized individuals are building their lives, their families, and their society.
5) Write important features of World Bank.
Important features of the World Bank are as follows:
1. Organisation and Structure: The organization of the bank consists of the Board of Governors, the Board of Executive Directors, and the Advisory Committee, the Loan Committee and the President and other staff members. Board of Governors is the supreme policy-making body of the bank. The board consists of one Governor and one Alternate Governor appointed for 5 years by each member country. The Board of Executive Directors consists of 21 members, 6 of them are appointed by the six largest shareholders, namely USA, UK, Germany, France, Japan, and India. The rest 15 members are elected by the remaining countries.
2. Innovation and Entrepreneurship: Innovation and Entrepreneurship help in higher productivity which leads to increased economic growth. It helps in the creation of employment to eradicate poverty. Young and growth-oriented companies contribute to employment growth. They help in enhancing competitiveness and productivity by introducing new products, developing novel business models, and opening new markets. The World Bank brings global experience, knowledge, research, and investments to help client countries develop effective innovation and entrepreneurship ecosystems, such as policies, strategies, regulations, and institutions that foster investments and jobs.
3. Financial Products and Services: World Bank provides low-interest loans, zero to low-interest credits, and grants .to developing countries. It supports in areas such as education, health, public administration, infrastructure, financial and private sector development, agriculture and environmental and natural resource management.
4. Innovative Knowledge Sharing: World Bank sponsors, hosts, or participates in many conferences and forums on issues of development. It also collaborates with partners on many developing issues. It also takes effort to provide access to the best global expertise to the developing countries.
5. Goals: The World Bank Group has set 2 goals to be achieved by 2030.
(a) End extreme poverty by decreasing the percentage of people living on less than 1.90 dollars a day to no more than 3%.
(b) Promote shared prosperity by fostering the income growth of the bottom 40% of every country.
6. Social Development: Social Development focuses on the need to ‘put people first’ in the development process. The World Bank’s work on social development brings voices of the poor and vulnerable to development processes. World Bank is also understanding timely social risk analysis, including poverty and social impact analysis.