Chapter 6: Institutes Supporting Business
Select the correct Option and rewrite the sentence.
Small Industrial Development Bank of India (SIDBI) was established in ___________
OPTIONS
1989
1990
1991
SOLUTION
Small Industrial Development Bank of India (SIDBI) was established in 1990.
SIDBI was established under the Small Industrial Development Bank of India. Act, ___________
OPTIONS
1988
1992
1996
SOLUTION
SIDBI was established under the Small Industrial Development Bank of India. Act, 1988.
___________ is Principal Financial Institution for Promotion, the Micro, Small and Medium Enterprise (MSME) sector 1n India.
OPTIONS
NABARD
KVIC
SIDBI
SOLUTION
SIDBI is Principal Financial Institution for Promotion, the Micro, Small and Medium Enterprise (MSME) sector 1n India.
___________Came into existence on July 12, 1982
OPTIONS
NABARD
KVIC
SIDBI
SOLUTION
NABARD Came into existence on July 12, 1982
A Committee to Review the Arrangements For Institutional Credit for Agriculture and Rural Development (CRAFICARD) was constituted under the Chairmanship of _________
OPTIONS
Kothari
Shivaraman
Rangarajan
SOLUTION
A Committee to Review the Arrangements For Institutional Credit for Agriculture and Rural Development (CRAFICARD) was constituted under the Chairmanship of Shivaraman
All India khadi and village Industries Board was set up in the year _____________
OPTIONS
1953
1949
1948
SOLUTION
All India khadi and village Industries Board was set up in the year 1953.
In April ___________ KVIC was established.
OPTIONS
1955
1953
1957
SOLUTION
In April 1957 KVIC was established.
Match the pairs.
SOLUTION
Give one word/phrase/term:
Life blood of business.
SOLUTION
Finance
Principal Financial institution of promotion of the Micro, Small and Medium Enterprise (MSME) sector in India.
SOLUTION
SIDBI
Advisor and mentor for MSMEs.
SOLUTION
SIDBI
Wholly owned subsidiary of IDBI was set up in July 1999, is providing venture capital.
SOLUTION
SIDBI venture capital Ltd. (SVCL)
A digital initiative by SIDBI launched on March, 17th, 2016
SOLUTION
SIDBI startup MitraThe apex institution for agricultural finance.
The apex institution for agricultural finance.
SOLUTION
NABARD
The Bangladeshi economist, known as the Father of Micro-finance.
SOLUTION
Dr. Muhammad Yunus
An international organization dedicated to providing finance, advice, and research to developing nations.
SOLUTION
world Bank
State True or False.
Small Industrial Development Bank was established on 2nd April, 1990.
OPTIONS
True
False
SIDBI has its head office at Mumbai.
OPTIONS
True
False
SIDBI is not working towards sustainable development of MSME’s in India.
OPTIONS
True
False
SIDBI, Startup Mitra scheme is launched on March 17, 2016.
OPTIONS
True
False
NABARD came into existence on July 12, 1982.
OPTIONS
True
False
The NABARD has been recognised as the apex institution for financing large scale industries.
OPTIONS
True
False
KVIC is actively working for planning, promotion and production of Khadi as well as in setting up of village and rural industries of India.
OPTIONS
True
False
Dr. Muhammad Yunus is known as the ‘Father of Rural Banking.
OPTIONS
True
False
Self Help Group is a large group of homogeneous individuals.
OPTIONS
True
False
Complete the sentence.
The lifeblood of a business is_______
SOLUTION
The lifeblood of a business is finance.
Micro, Small and Medium Enterprises (MSMEs) are focused domains for _________.
SOLUTION
Micro, Small, and Medium Enterprises (MSMEs) are focused domains for SIDBI.
SIDBI takes structural initiatives to resolve the financial and nonfinancial hurdles of ____________
SOLUTION
SIDBI takes structural initiatives to resolve the financial and nonfinancial hurdles of MSMEs
SIDBI is established to provide short-term and long-term finance to ________.
SOLUTION
SIDBI is established to provide short-term and long-term finance to MSMEs.
‘SIDBI Startup Mitra’ launched on __________ .
SOLUTION
‘SIDBI Startup Mitra’ launched on March 17th, 2016.
To improve the accessibility of credit and handholding services to MSMEs, SIDBI has launched the __________.
SOLUTION
To improve the accessibility of credit and handholding services to MSMEs, SIDBI has launched the Udyami Mitra.
NABARD came into existence on __________.
SOLUTION
NABARD came into existence on July 12th, 1982.
Khadi and Village Industries Commission was set up in __________.
SOLUTION
Khadi and Village Industries Commission was set up in 1953.
A statutory body of Khadi and Village. Industries Commission (KVIC) was created with a special Act of _______
SOLUTION
A statutory body of Khadi and Village. Industries Commission (KVIC) was created with a special Act of Parliament
The Grameen Bank in Bangladesh was set up in ________
SOLUTION
The Grameen Bank in Bangladesh was set up in October 1983.
The father of Micro finance is _______
SOLUTION
The father of Micro finance is Dr. Muhammad Yunus.
The World Bank came into existence on the __________
SOLUTION
The World Bank came into existence on the 1944 Bretton Woods Conference.
The headquarter of the World Bank is in____________
SOLUTION
The headquarter of the World Bank is in Washington D.C.
Dr. Muhammad Yunus jointly won the Noble Prize in __________.
Solution
Dr. Muhammad Yunus jointly won the Noble Prize in 2006.
Select the correct option.
OPTIONS
1953
1944
2nd April 1980
Oct. 1983
12 July 1982
OPTIONS
1953
1944
2nd April 1980
Oct. 1983
12 July 1982
OPTIONS
1953
1944
2nd April 1980
Oct. 1983
12 July 1982
OPTIONS
1953
1944
2nd April 1980
Oct. 1983
12 July 1982
OPTIONS
1953
1944
2nd April 1980
Oct. 1983
12 July 1982
Answer in one sentence.
What is SIDBI?
SOLUTION
SIDBI is the Small Industrial Development Bank of India, which takes initiative to resolve the financial and nonfinancial hurdles of MSMEs.
What do you mean by NABARD?
SOLUTION
NABARD is a National Bank for Agriculture and Rural Development, which was formed with an objective to provide and regulate credit and other facilities for the development of agriculture, small scale industries, cottage village industries, handicraft, and other rural crafts and allied economic activities.
What is meant by Grameen Bank?
SOLUTION
The bank which gives small loans to landless poor women to promote self-employment is called Grameen Bank.
What is SHG?
SOLUTION
SHG is a small group of homogeneous individuals who come together with the objective of creating a common fund through savings and meet members' emergency needs by providing collateral-free loans.
What do you mean by World Bank?
SOLUTION
The World Bank is an international organization dedicated to providing finance, advice, and research to developing nations.
What is MSME’s?
SOLUTION
MSME’S are Micro, Small, and Medium Enterprises, which play an important role in promoting entrepreneurship among women and economically weaker section in the country.
What is Udyami Mitra?
SOLUTION
‘Udyami Mitra’ is the digital portal launched by SIDBI, to improve the accessibility of credit and handholding services to MSMEs.
Correct the underlined word and rewrite the following sentence.
SIDBI is established to provide only long -term finance to the MSME’s.
SOLUTION
SIDBI is established to provide short-term and long term finance to the MSME’s.
The NABARD has been recognised as the apex institution for Industrial finance.
SOLUTION
The NABARD has been recognised as the apex institution for Agricultural finance.
Khadi was a symbol and the spirit of self-reliance in post-independence India.
SOLUTION
Khadi was a symbol and the spirit self-reliance of pre-independence India.
Self-help groups are based on the fundamental principle of to earn profit.
SOLUTION
Self-help groups are based on the fundamental principle of ‘helping each other’ and “unity is strength”.
World Bank provides high interest loan.
SOLUTION
World Bank provides low interest loan.
Explain the following term/concept.
Udyami Mitra.
SOLUTION
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, and avail multiple loan benefits.
KVIC.
SOLUTION
KVIC was established to take over the work from All India Khadi and Village Industries Board.
KVIC is working for planning, promotion, and production of Khadi and setting up of village and rural industries in India.
It gives emphasis on utilizing the locally available raw materials and human skills to generate non-farm employment opportunities in rural areas.
World Bank.
SOLUTION
The World Bank is an international organization formed to provide finance, advice, and research to developing nations.
It was created at the 1944 Bretton Woods Conference along with the International Monetary Fund (IMF)
The headquarter of the World Bank is in Washington DC.
It provides financial as well as technical assistance to the member countries of the world.
It comprises two institutions namely the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
Self Help-Groups.
SOLUTION
Self Help Group (SHG) is a voluntary association.
It is a small homogeneous group of people who come together with the objective of creating a common fund through small savings and meet members' emergency needs by providing collateral-free loans at a reasonable rate.
Many SHG is linked to banking institutions for getting micro-credit.
All decisions are taken collectively by SHG members.
Collateral Free Loan.
SOLUTION
Collateral free loans are SHGs small loans provided to poor individuals for undertaking Self-employment projects.
Loans are given on the principle of mutual trust and either minimum or no documentation.
The rate of interest generally charged are higher than the interest charged by banks.
It saves the poor individuals from the clutches of local money lenders.
Study the following case/situation and express your opinion.
Anand completed his MB A and wants to start a Small Scale Industry. H e is good at using technology. He has a very good business idea in mind and looking for a lender or investor.
Who is promoter or businessman in this case?
W h at is the full form of SSI?
Suggest digital ways to find lenders or investors for this initiative.
SOLUTION
A person who gets the idea of starting the business enterprise is called a promoter or businessman. In the above case, Anand is a promoter or businessman.
The full form of SSI is Small Scale Industry.
SIDBI has started Digital initiatives/Digital ways to find lenders or investors. For this initiative I can suggest the following ways:
(a) SIDBI Startup Mitra: It brings together all stakeholders, start-up entrepreneurs, incubators, investors, industry bodies, mentors and advisors, and banks on one platform. It helps in the financing and development of new entrepreneurs.
(b) Udyami Mitra: This is a portal launched by SIDBI to improve the accessibility of credit and handholding services to MSMEs. 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, and avail multiple loan benefits.
Answer in brief.
State any four features of NABARD.
SOLUTION
Features of NABARD:
Apex Bank: NABARD acts as an apex bank for meeting the credit needs of all types of financial institutions working 1n 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.
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.
Provides Credit for Rural Development: It takes initiatives in the development and promotion of different activities in rural areas by providing funds to State governments. It also provides refinancing for the Upliftment of weaker sections of the society. It also works on the improvement of small and minor irrigation by way of promoting agricultural activities.
Financing Rural Industries: It provides refinancing facilities to 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.
State four objectives of KVIC.
SOLUTION
Objectives of KVIC:
Development of Khadi and Other Village Industries: KVIC is actively working for planning, promotion and production of khadi as well as in setting up of village and rural industries in India. It identifies the potential for the development of rural industries and undertakes the valuable task of promoting and developing locally operating village enterprises.
Special Objective: KVIC has a special objective of providing employment. It gives emphasis on utilizing the locally available raw materials and human skills to generate non-farm employment opportunities in rural areas. It plays the role of co-ordinator with other agencies engaged in rural development.
Economic Objective: KVIC is actively working for planning, promotion and production of khadi as well as in setting up of village and rural industries in India. KVIC receives funds from the Ministry of MSMEs for the effective implementation of various programs and schemes. It helps in producing saleable articles that help the economic development of the country.
Wider Objective: It has a wider objective of creating self-reliance amongst the poor and building up of a strong rural community spirit.
Write any four features of the World Bank.
SOLUTION
Features of World Bank:
Organization 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. All the powers of the bank are vested in the Board of Governors which is the supreme policy-making body of the bank. The board consists of one Governor and an Alternate Governor appointed for five 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 of the 15 members are elected by the remaining countries.
Goals: The World Bank Group has two goals to be achieved by 2030.
(a) To end extreme poverty by decreasing the percentage of people living on less than 1.90 dollars a day to no more than 3%.
(b) To promote shared prosperity by fostering the income growth of the bottom 40% for every country.
Innovative Knowledge Sharing: World Bank offers support to developing countries through policy, advice, research and analysis, and technical assistance. Analytical works of the World Bank often help developing countries. It also helps in the capacity development of developing countries. World Bank also sponsors, hosts, or participates in many conferences and forums on issues of development.
Social Development: Social Development focuses on the need to “put people first” in the development process. The World Bank work with governments, communities, civil societies, the private sector, and the marginalized for the cause of social development. Social Development promotes economic growth and leads to a higher quality of life. ‘
Describe any two features of Self Help Groups.
SOLUTION
Features of Self Help Groups:
Democratic Set up: SHG is a group of the members, for the members and by the members. Every member of the group actively participates in the functioning of SHGs. Members are responsible for their own future by organizing themselves into SHGs. They 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.
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. Generally, the rate of interest is higher than the interest charged by banks. It saves the poor individuals from the clutches of local money lenders. The repayment of loans is ensured timely as all members of the group are responsible for collecting repayment amounts from the members who borrowed the loan.
Describe any two features of SIDBI.
SOLUTION
Features of SIDBI:
Financial Institute for Promotion of MSMEs: SIDBI is established to provide short term and long term finance to the MSMEs. It is the principal financial institution for micro, small, and medium sector units. It also coordinates the functions of institutions engaged in financing MSME’s. It provides refinance to Banking and Non-Banking Financial Companies to increase the supply of credit to MSMEs.
Advisory Function: SIDBI also works as an advisor and mentor of MSMEs. It helps MSMEs in expanding marketing channels for the products both in domestic as well as international markets. It also initiates steps for modernization and technological upgradation of current units.
Justify the following statement.
SIDBI acts as an institute for the promotion of MSMEs
SOLUTION
There are many efforts taken by SIDBI to emerge as a brand which is customer friendly towards MSME’s.
It .facilitates and strengthens credit flow to MSME’s.
It identifies financial and developmental gaps in the MSME’s and takes efforts to resolve the same.
SIDBI has dedicated its resources to the evolution of a vibrant ecosystem. SIDBI has taken Steps for technological upgradation and modernization of existing MSME’S
Thus, we can say that SIDBI acts as an institute for promotion of MSME’s.
SIDBI provides different types of financial and non-financial services through its subsidiaries.
SOLUTION
The following are the subsidiaries of SIDBI that provides financial and non-financial services:
SIDBI Venture Capital Ltd. provides venture capital to emerging sectors, such as life sciences, biotechnology, pharmaceuticals, engineering, and information technology.
Credit Guarantee Fund Trust for Micro and Small Enterprises is a trust to implement the Credit Guarantee Scheme through which credit faculties are extended without third party guarantee on collateral security by eligible lending banks/financial institutions.
SME Rating Agency of India Ltd. was set up by SIDBI, Dum & Bradstreet Information Services India Pvt. Ltd. and several public, private and foreign sector banks as an MSME. It is a dedicated third-party rating agency and prov1de comprehensive, transparent, and reliable ratings and risk profiling.
India SME Technology Services Limited is a platform where MSME’s can tap global opportunities for acquiring new emerging technologies and establish business collaborations.
India SME Asset Reconstruction Company Ltd. is an asset reconstruction company. It acquires non-performing assets and tries to resolve them through its innovative mechanisms. It especially focuses on the non-performing assets of the MSME sector.
Micro Units Development and Refinance Agency is established for ‘funding the unfunded’ micro-enterprises in the country.
Thus, SIDBI provides different types of financial and non-financial services through its subsidiaries.
The NABARD has been recognized as the apex institution for agricultural finance.
SOLUTION
India is an agricultural country.
Agriculture and its allied activities act as the main source of livelihood for most of the rural population of India.
The government of India is aware of the need of boosting institutional credit in rural economies.
The RBI constituted a Committee to review the arrangements for Institutional Credit for Agricultural and Rural Development under the Chairmanship of Shri B. Sivaram, to take a review of agricultural credit in India.
The recommendation of the Committee was accepted and National Bank for Agriculture and Rural Development came into existence on July 12, 1982, under the special Act of the Parliament, with the objective of providing credit and other facilities for the development of agriculture.
Thus, we can say the NABARD has been recognized as an apex institution for agricultural finance.
KVIC plays an important role in the development of entrepreneurship.
SOLUTION
Entrepreneurship Development is one of the major functions of KVIC.
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. It increases the earning capacity as well as prevents migration.
KVIC actively participates in many international trade exhibitions for popularising its products in international markets.
Thus, we can say that KVIC plays an important role in the development of entrepreneurship.
Mutual Trust is the soul of SHG.
SOLUTION
Most of the Indian villagers are facing challenges such as poverty, illiteracy, lack of skills, health care, etc.
There is a need for group efforts to solve these problems.
The basic philosophy of forming SHGs is to overcome individual shortcomings and weaknesses with collective efforts.
Through mutual trust, thousands of poor and marginalized individuals are building their lives, their families, and their society.
Thus, we can say mutual trust is the soul of SHG.
SHGS plays an important role in the empowerment of women.
SOLUTION
The empowerment of women through SHG’s would lead to benefits not only to the individual women but also for the family and community as a whole.]
The SHGs empower women and train them to take an active part in the socio-economic progress of the nation.
SHG develops saving habits among women.
It enhances the status of women as they participate, lead, make decisions, and get benefited through collective efforts Thus, we can say that SHG’s play an important role in 1n the empowerment of women.
World Bank plays a vital role in social development.
SOLUTION
The World Bank work with governments, communities, civil societies, private sectors, and the marginalized ' for the cause of social development.
Social development promotes economic growth and leads to a higher quality of life.
The World Bank's work on social development brings voices of the poor and vulnerable to the development process.
World Bank is also undertaking timely social risk analysis, including poverty and social impact analysis.
Thus, the World Bank plays a vital role in social development.
Attempt the following.
State the different forms of finance provided by SIDBI.
SOLUTION
SIDBI offers the following finance facilities to its customers:
Direct Finance: SIDBI offers direct financing to the MSMEs through financing Working Capital, Term Loan, Foreign Currency Loan, Equity Support, Energy Saving Schemes, etc.
Indirect Finance: SIDBI offers indirect assistance by providing refinance to banks, State Level Financial Institutions, etc. with an extensive branch network across the country.
Micro Finance: SIDBI offers micro-finance to small businessmen and entrepreneurs for establishing their business.
State the role of SIDBI in sustainable development.
SOLUTION
Role of SIDBI in sustainable development:
SIDBI helps MSMEs in the creation of economic wealth while preventing the ecological wealth of the country. It promotes the culture of energy-efficient and sustainable finance. It takes initiative to enhance awareness of the benefits of climate control amongst MSMEs.
It focuses on lending schemes, promoting investments in clean production, and energy-efficient technologies. It helps to reduce the emission of greenhouse gases to contribute to a reduction in pollution.
Explain the role of NABARD in financing rural industries.
SOLUTION
Role of NABARD in financing rural industries:
It plays an important role in providing refinance to 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 programmes to promote an entrepreneurial culture among rural youth and encourage them to start enterprises in rural areas.
Explain the objectives of KVIC.
SOLUTION
Objectives of KVIC are:
The objectives of KVIC are broadly classified into three. i.e. social objective, economic objectives, and wider objective.
Through social objectives, KVIC aims at providing employment to the rural unemployed.
Through economic objective, it tries to produce saleable articles which will give promotion to KVIC products.
Through a wider objective, it attempts to create self-refinance amongst the poor and building a strong rural community spirit.
Explain the role of KVIC in employment generation.
SOLUTION
Role of KVIC in employment generation:
Due to the massive population growth agricultural sector is losing its ability to generate additional employment in rural areas.
It is necessary to create employment opportunities for the fast increasing workforce in rural areas.
Khadi and village industries are labour intensive in nature.
The KVIC is established with the broader objective to promote non-farm employment opportunities in rural areas.
It also concentrates on the betterment of rural artisans and socio-economic weaker section of the society.
Explain in detail the democratic setup in SHGs.
SOLUTION
Democratic set up in SHGs:
SHG is a group of the members, for the members, and by the members.
It is the group that reflects people’s real participation in the process of development.
Every member of the group actively participates in the functioning of SHGs.
Members are responsible for their own future by organizing themselves into SHGs.
They 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.
Explain organizational structure of World Bank.
SOLUTION
Organizational Structure of the World Bank:
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.
Answer the following:
Write important features of SIDBI.
SOLUTION
Important features of SIDBI are as follows:
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.
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.
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.
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.
Forms Of Finance: SIDBI offers the following facilities to its customers:
(a) Direct Finance,
(b) Indirect Finance,
(c) Micro Finance
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.
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.
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
Write important features of NABARD.
SOLUTION
Important features of NABARD are as follows:
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.
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.
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.
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.
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.
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.
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.
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.
Write important features of KVIC.
SOLUTION
Important features of KVIC are as follows:
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.
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.
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.
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.
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.
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.
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.
Write important features of SHGs.
SOLUTION
Important features of SHGs are as follows:
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.
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.
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 micro-enterprises use untapped manpower in the area which generates employment opportunities in rural areas.
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.
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.
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.
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.
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.
Write important features of the World Bank.
SOLUTION
Important features of the World Bank are as follows:
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.
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.
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.
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.
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.
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. The World Bank is also understanding timely social risk analysis, including poverty and social impact analysis.
Balbharati Solutions for Organisation of Commerce and Management (OCM) 11th Standard HSC Maharashtra State Board Chapterwise List - Free
The answers for the Balbharati books are the best study material for students. These Balbharati Solutions for Organisation of Commerce and Management (OCM) 11th Standard HSC Maharashtra State Board will help students understand the concepts better.
• Chapter 1: Introduction of Commerce and Business
• Chapter 3: Small Scale Industry and Business
• Chapter 4: Forms of Business Organisation - 1
• Chapter 5: Forms of Business Organisation - 2
• Chapter 6: Institutes Supporting Business
• Chapter 7: Business Environment
• Chapter 8: Introduction to Management
Author: By Amin for OMTEX CLASSES.
