Elaborate the functions of the specialized banks that provide financial aid to the small scale industries

cbse
business-services

#1

Small Industries Development Bank of India (SIDBI) offer financial aid to the small scale industries.
The important functions of SIDBI are discussed below
(i) It initiates steps for technology adoption, technology exchange, transfer and upgradation and modernisation of existing units.
(ii) It facilitates timely flow of credit for both term loans and working capital to SSI in callaboration with commercial banks.
(iii) It enlarges marketing capabilities of the products of SSIs in both domestic and international markets.
(iv) It directly discounts and rediscounts bills with a view to encourage bills culture and helping the SSI units to realise their sale proceeds of capital goods/equipments and components etc.
(v) It promotes employement oriented industries especially in semi-urban areas to create more
employment opportunities.