New Delhi, Jan. 21 -- The Union Cabinet, chaired by Prime Minister Narendra Modi on Wednesday, has approved a significant equity support of Rs. 5,000 crore for the Small Industries Development Bank of India (SIDBI).

This capital will be infused by the Department of Financial Services in three separate stages, starting with Rs 3,000 crore in the 2025-26 financial year, followed by Rs. 1,000 crore in each of the next two years. This move is designed to strengthen SIDBI's financial standing and ensure it can continue to support small businesses across the country.

The primary goal of this funding is to increase the flow of credit to Micro, Small & Medium Enterprises (MSMEs). According to a statement by the Union Finance Ministry, "Flow of ...