Which institution set up in 1990 under an Act of the Indian Parliament, acts as the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector?

  1. A. National Bank For Agriculture And Rural Development
  2. B. Small Industries Development Bank of India ✓
  3. C. Small Industries Credit and Investment Corporation of India Ltd
  4. D. Industrial Development Bank of India

Correct Answer: B. Small Industries Development Bank of India

Explanation

The Small Industries Development Bank of India (SIDBI) was set up on 2 April 1990 to act as the principal financial institution for the promotion, financing, and development of the MSME sector.

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