Finance Minister Nirmala Sitharaman on Thursday asked the Small Industries Development Bank of India (SIDBI) to get more “people-centric” in their initiatives as it prepares for its next leg of journey for the next 25 years — seen as a Amrut Kaal by the government.

Addressing the SIDBI-organised 3rd National Microfinance Congress in the capital, Sitharaman asked the body to take efforts to promote local entrepreneurs.

‘Need ground inputs’

“In its 31 years of existence, SIDBI and its laid out processes have stood the test of time. But now that is not going to be just enough. We now need SIDBI to be getting lot of inputs from the ground and talking to NBFCs and MFIs to understand how best can greater robustness be brought to the system so that real time dynamic approach in funding can be done,” said the minister.

Although SIDBI has done well for itself, the challenges it may face for the next 25 years are going to be ones that would make creativity to come out for SIBDI, she said, adding: “Out of the box solutions are going to be the ones that are likely to help SIDBI address the challenges.”

Sitharaman also highlighted that the SIDBI has started directly dealing with small enterprises through Prayaas scheme and felt this has to be given more energy in the coming days. 

She added that she recognised the importance of micro finance institutions as it is they who make credit outreach workable and they are present in the most difficult terrains of the country. She also highlighted the out-of-the-box thinking of RBI in introducing LTRO facility (during the pandemic) which made monies available to banks for lending to microfinance institutions. 

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