Smt. Nirmala Sitharaman Expands Financial Support for MSMEs with New SIDBI and Nari Shakti Branches

Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, has officially launched the National MSME Cluster Outreach Programme in Bengaluru. The event, organized in collaboration with the Department of Financial Services (DFS), Ministry of Finance, and the Small Industries Development Bank of India (SIDBI), also featured the virtual presence of Union Minister for MSMEs, Shri Jitan Ram Manjhi, along with key officials, including Shri Pankaj Chaudhary, Minister of State for Finance, and Sushri Shobha Karandlaje, Minister of State for MSMEs.

Key Highlights:

• Launch of National MSME Cluster Outreach Programme: Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, launched this initiative in Bengaluru.
• Inauguration of New SIDBI Branches: Six new branches opened in Tumakuru, Raichur, Shivamogga, Kalaburagi, Mangaluru, and Vijayapura, boosting financial support for MSMEs.
• Empowering Women Entrepreneurs: Four Nari Shakti Branches of Union Bank of India were inaugurated in Bengaluru, Chennai, Jaipur, and Vishakhapatnam.

Inauguration of SIDBI Branches and Nari Shakti Branches

The Union Finance Minister inaugurated six new Small Industries Development Bank of India (SIDBI) branches in Karnataka to ensure greater financial inclusion and support for MSMEs. These branches, located in Tumakuru, Raichur, Shivamogga, Kalaburagi, Mangaluru, and Vijayapura, aim to provide targeted financial services to boost MSME growth in these clusters. Additionally, four Nari Shakti Branches of Union Bank of India were opened in major cities to support and empower women entrepreneurs.

Focus on MSME Growth and Innovation

Smt. Nirmala Sitharaman emphasized the crucial role of Micro, Small, and Medium Enterprises (MSMEs) in India’s economic development. She highlighted how MSMEs drive innovation, create jobs, and contribute significantly to the country’s self-reliance. The Finance Minister encouraged banks to put extra effort into extending credit to the MSME sector, especially in rural areas.

Credit Targets for MSME Sector

The Union Finance Minister set an ambitious target for Scheduled Commercial Banks and Non-Banking Financial Companies (NBFCs) to provide additional MSME credit amounting to ₹1.54 lakh crore for FY 2024-25. The targets for the following years include:

• FY 2025-26: ₹6.21 lakh crore
• FY 2026-27: ₹7 lakh crore

These targets are aimed at accelerating credit growth and strengthening MSMEs across the country.

Government’s Commitment to MSME Support

Union Minister for MSMEs, Shri Jitan Ram Manjhi, in his virtual address, stressed the importance of extending financial support to rural enterprises. He highlighted government initiatives that aim to bolster the MSME ecosystem. During the event, SIDBI signed an MoU with Peenya Industries Association to facilitate capacity building, credit access, and knowledge-sharing for MSMEs.

Sanction Letters Distributed to MSME Customers

Smt. Sitharaman distributed sanction letters totaling ₹25.75 crore to 11 MSME customers of SIDBI and ₹11 crore to MSME customers of Union Bank’s Nari Shakti Branch. These letters represent financial aid across sectors, from traditional industries to cutting-edge fields like aerospace and quantum technology.

Additionally, the Finance Minister handed over sanction letters to borrowers under the newly launched “Tarun Plus” category of the Pradhan Mantri Mudra Yojna (PMMY). This scheme, announced in the Union Budget 2024-25, has increased the loan limit from ₹10 lakh to ₹20 lakh to support aspiring entrepreneurs.

Key Takeaways for MSMEs

1. New Financial Opportunities: The launch of SIDBI and Nari Shakti branches offers greater access to financial services for MSMEs, promoting growth and sustainability.
2. Focus on Women Entrepreneurs: The new Nari Shakti Branches are set to empower women by providing them with dedicated financial resources and support.
3. Increased Credit Flow: The government’s credit targets are expected to boost funding for MSMEs, with a special emphasis on rural enterprises.

Conclusion

The launch of the National MSME Cluster Outreach Programme and the inauguration of new SIDBI and Nari Shakti branches mark a significant step in the government’s ongoing commitment to supporting MSMEs. With increased credit access, targeted financial services, and initiatives focused on empowering women entrepreneurs, the MSME sector is poised for accelerated growth and innovation.

Multiple-Choice Questions (MCQs)

1. What was the main purpose of launching the National MSME Cluster Outreach Programme?
   A) Promote export growth
   B) Ensure financial access for MSMEs
   C) Support agricultural enterprises
   D) Provide housing loans
   
   Answer: B) Ensure financial access for MSMEs
   View Answer >
2. How many new SIDBI branches were inaugurated in Karnataka?
   A) Four
   B) Five
   C) Six
   D) Seven
   
   Answer: C) Six
   View Answer >
3. Where were the four Nari Shakti Branches of Union Bank of India inaugurated?
   A) Delhi, Mumbai, Kolkata, Hyderabad
   B) Bengaluru, Chennai, Jaipur, Vishakhapatnam
   C) Pune, Lucknow, Chandigarh, Goa
   D) Ahmedabad, Patna, Ranchi, Surat
   
   Answer: B) Bengaluru, Chennai, Jaipur, Vishakhapatnam
   View Answer >
4. What was the credit target set by the Finance Minister for Scheduled Commercial Banks and NBFCs for FY 2024-25?
   A) ₹1.54 lakh crore
   B) ₹2 lakh crore
   C) ₹5 lakh crore
   D) ₹10 lakh crore
   
   Answer: A) ₹1.54 lakh crore
   View Answer >
5. Which organization signed an MoU with Peenya Industries Association during the event?
   A) NABARD
   B) RBI
   C) SIDBI
   D) SEBI
   
   Answer: C) SIDBI
   View Answer >
6. Under which category was the loan limit increased to ₹20 lakh in the PMMY?
   A) Shishu
   B) Tarun
   C) Tarun Plus
   D) Kishore
   
   Answer: C) Tarun Plus
   View Answer >