Set up on April 2, 1990 under an Act of Indian Parliament as a principal financial institution for: -- Promotion -- Financing and -- Development of industries in the MSME sector and -- Co-ordinating the functions of other institutions engaged in similar activities. Provision and Charter: SIDBI was established on April 2, 1990. The Charter establishing it, The Small Industries Development Bank of India Act, 1989 envisaged SIDBI to be "the principal financial institution for the promotion, financing and development of industry in the small-scale sector and to co-ordinate the functions of the institutions engaged in the promotion, financing or developing industry in the small-scale sector and for matters connected therewith or incidental thereto". Business Domain of SIDBI: The business domain of SIDBI consists of small-scale industrial units, which contributes significantly to the national economy in terms of production, employment and exports. Business Strategy of SIDBI: The business strategy of SIDBI is to address the financial and non-financial gaps in the MSME ecosystem. Financial support to MSMEs is provided by way of (a) indirect finance / refinance to banks / financial institutions for onward lending to MSMEs and (b) direct finance in the niche areas like risk capital, sustainable finance, receivable financing, service sector financing, etc.