Union Cabinet Approves Rs 5,000 Crore Equity Infusion into SIDBI to Boost MSME Credit

The Union Cabinet approved a Rs 5,000 crore equity infusion into the Small Industries Development Bank of India (SIDBI) to enhance credit flow to micro, small, and medium enterprises (MSMEs). The capital will be infused in three tranches from 2025-26 to 2027-28, aiming to increase MSME beneficiaries from 76.26 lakh to 1.02 crore and generate approximately 1.12 crore jobs. The infusion will help SIDBI maintain a strong capital to risk-weighted assets ratio (CRAR) amid rising risk-weighted assets driven by digital lending and venture debt for startups.