The small Industries Development Bank of India has inked with SAARC Development Bank (SDF)
• The Small Industries Development Bank of India (SIDBI) has inked MoU with SAARC Development Fund (SDF)
• This has been done to promotte for mutual cooperation and collaboration.
• The MoU was signed by Deputy Managing Director of SIDBI A K Kapur and SDF CEO Sunil Motiwal.
• MoU initiates SDF and SIDBI to work together in co-funding of projects in Indian MSMEs on risk sharing basis in identified sectors.
• Development of suitable financial products for SME financing for MSMEs of other Saarc states, the Finance Ministry said in a statement.
• Technology transfer and making available software to MFIs regarding loan tracking systems in other SAARC states.
• Capacity development of SDF, SIDBI and SME funding institutions in SAARC countries.
• SIDBI is an independent financial institution aimed to aid the growth and development of micro, small and medium-scale enterprises (MSMEs).
• In 1996, a first funding mechanism was created in SAARC, ‘South Asian Development Fund (SADF), merging the SAARC Fund for Regional Projects (SFRP) and the SAARC Regional Fund.
• SADF objectives were to support industrial development, poverty alleviation, protection of environment, institutional/human resource development and promotion of social and infrastructure development projects in the SAARC region.