What does SIDBI stand for?
2017
What does SIDBI stand for?
- A.
Synchronised Investment Deployment Board of India
- B.
Strategic Industries Development Board of India
- C.
Small-scale Investment and Deployment Bank of India
- D.
Small Industries Development Bank of India
Show answer & explanation
Correct answer: D
Concept
SIDBI is the principal (apex) development financial institution in India, created specifically to promote, finance and develop the micro, small and medium enterprises (MSME) sector. It was set up under an Act of Parliament (the SIDBI Act, 1989) and began operations on 2 April 1990, with its head office at Lucknow.
Decoding the acronym
Reading SIDBI letter by letter gives:
Letter | Stands for |
|---|---|
S | Small |
I | Industries |
D | Development |
B | Bank |
I | India |
Putting these together yields “Small Industries Development Bank of India”.
Why the other names do not fit
“Synchronised Investment Deployment Board of India” — no Indian institution exists under this title; the phrase is simply coined to fit the five letters and names a ‘Board’ that does not exist.
“Strategic Industries Development Board of India” — again no such body; ‘strategic industries’ belongs to defence/heavy-industry policy, an unrelated domain.
“Small-scale Investment and Deployment Bank of India” — a deliberately close-sounding trap, but no bank is titled ‘Investment and Deployment’; that wording replaces the institution’s real name.
Hence the full form of SIDBI is Small Industries Development Bank of India.