Question: Recently the Union Cabinet has approved the establishment of “Fund of Funds for Startups” (FFS) at which of the following bank?
(a) Small Industries Development Bank of India
(b) National Bank for Agriculture and Rural Development
(c) Reserve Bank of India
(d) Mudra Bank
Ans.(a)
Related facts:
- On 22 June 2016 the Union Cabinet has approved the establishment of “Fund of Funds for Startups” (FFS) at Small Industries Development Bank of India (SIDBI).
- This will contribute to various Alternative Investment Funds (AIF), registered with Securities and Exchange Board of India (SEBI).
- The bank will provide funding support to Startups.
- This is in line with the Start up India Action Plan unveiled by Government in January 2016.
- The corpus of FFS is Rs.10,000 crore which shall be built up over the 14th and 15th Finance Commission cycles subject to progress of the scheme and availability of funds.
- An amount of Rs.500 crore has already been provided to the corpus of FFS in 2015-16 and Rs.600 crore earmarked in the 2016-17.
- The Fund is expected to generate employment for 18 lakh persons on full deployment.
Reference:
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