Archive · 22 Jan 2026
Cabinet Approves ₹5,000 Crore for SIDBI
The Indian government has decided to give ₹5,000 crore to SIDBI, a bank that helps small businesses.
This money will be given in three parts over the next three years.
The first part is ₹3,000 crore in 2025-26, and the next two parts are ₹1,000 crore each in 2026-27 and 2027-28.
This money will help more small businesses get loans and create more jobs.
The government also decided to continue a pension scheme called Atal Pension Yojana (APY) until 2030-31.
This scheme helps workers who don't have a regular job save for their old age.
Over 8.66 crore people have joined this scheme so far.
The money given to SIDBI will also help the bank keep its financial health good, so it can give more loans to small businesses at fair interest rates.
Union Cabinet approves ₹5,000 crore equity infusion in SIDBI in three tranches.
First tranche of ₹3,000 crore in 2025-26, next ₹1,000 crore each in 2026-27 and 2027-28.
Expected to add 25.74 lakh new MSME beneficiaries and generate 1.12 crore jobs by 2027-28.
Infusion aims to maintain Capital to Risk-weighted Assets Ratio (CRAR) above 10.5% under high stress and 14.50% under Pillar 1 and 2.
Cabinet also approves continuation of Atal Pension Yojana (APY) up to 2030-31 with funding support.
- Who
- Union Cabinet, SIDBI, MSMEs, Atal Pension Yojana subscribers
- What
- Equity infusion of ₹5,000 crore in SIDBI and continuation of APY
- When
- First tranche in 2025-26, next in 2026-27 and 2027-28; APY up to 2030-31
- Where
- India
- Why
- To increase financial assistance to MSMEs, generate employment, and ensure sustainability of APY
- Equity Infusion
- ₹5,000 crore
- First Tranche
- ₹3,000 crore in 2025-26
- Next Tranches
- ₹1,000 crore each in 2026-27 and 2027-28
- Expected New MSME Beneficiaries
- 25.74 lakh by 2028
- Estimated Employment Generation
- 1.12 crore by 2027-28
- CRAR Target
- Above 10.5% under high stress, 14.50% under Pillar 1 and 2
- APY Continuation
- Up to 2030-31
- APY Subscribers
- Over 8.66 crore as of January 2026
- MSME Credit Growth
- 13% YoY in FY25
- Total MSME Credit Exposure in FY25
- ₹35.2 lakh crore
Sources
SIDBI to get ₹5,000 crore equity support
Cabinet Approves ₹5,000 Crore Equity Infusion To SIDBI, Boosting MSME Credit Flow & Generating 1.12 Crore Jobs
Cabinet approves continuation of Atal Pension Yojana till 2030-31
Cabinet boosts credit for small businesses with ₹5,000-crore SIDBI infusion, extends Atal Pension Yojana to FY31
Cabinet approves equity support to Small Industries Bank of India
Cabinet clears Rs 5,000 crore equity infusion for SIDBI
Cabinet approves continuation of Atal Pension Yojana
SIDBI receives Rs 5,000 crore capital infusion from Union Cabinet, over 25 lakh new MSMEs to get credit benefit
Cabinet clears Rs 5,000 cr capital boost for SIDBI to step up MSME credit
Atal Pension Yojana gets Cabinet nod for extension till FY31
Budget 2026: Union Cabinet approves extension of Atal Pension Yojana till FY31
