New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    What is the primary objective of the MoU signed between

    the Technology Development Board (TDB) and the Small Industries Development Bank of India (SIDBI)?
    A To regulate the funding process for MSMEs in India. Correct Answer Incorrect Answer
    B To promote the development and commercial application of technology. Correct Answer Incorrect Answer
    C To establish a credit alliance for large enterprises. Correct Answer Incorrect Answer
    D To streamline coordination for international financial transactions. Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    With an aim  to boost the Micro, Small, and Medium Enterprise (MSME) sector in India, the Technology Development Board (TDB) and the Small Industries Development Bank of India (SIDBI) have signed an MoU to facilitate easier access to credit for enterprises engaged in the development and commercial application of indigenous or imported technology.Through this MoU, TDB and SIDBI have entered into a credit alliance, wherein TDB and SIDBI shall refer additional funding needs of companies they have previously funded to each other. With dedicated key contacts, both organizations will streamline coordination for seamless referral exchange. TDB and SIDBI will also provide financial support to eligible MSMEs, following their respective policy guidelines.

    Practice Next