UM Nirmala Sitharaman Launches Series of SIDBI Initiatives on its 37th Foundation Day

Current Context: On 25 May 2026, FM Nirmala Sitharaman launched four major SIDBI initiatives in Mumbai during its 37th Foundation Day.

• The initiatives were the SIDBI‑RRB Co‑Lending Platform, MoRE (Modernization of Rural Enterprises), Micro Credit Card Scheme, and the SIDBI MSME Exchange – Machinery Portal.
• The co‑lending platform enhances MSME credit in semi‑urban/rural areas, while MoRE targets 10,000 rural micro/artisanal units over 3 years.
• The Micro Credit Card Scheme offers up to ₹5 lakh revolving credit with 75% guarantee coverage and no mandatory primary security.
• The Machinery Portal links digital machinery discovery with institutional financing, accelerating MSME modernization.
• Backed by ₹5,000 crore equity infusion (Jan 2026), SIDBI aims to add 25 lakh new MSME beneficiaries by 2028.
• Sitharaman emphasized MSMEs as drivers of India’s growth, employment, and export competitiveness.

Question:

Q.1 What is the guarantee coverage provided under the Small Industries Development Bank of India (SIDBI) Micro Credit Card Scheme?
a) 50%
b) 60%
c) 75%
d) 100%

Answer: c) The scheme provides 75% guarantee coverage, encouraging greater lending to small borrowers.