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SAMPLE QUESTIONS FOR oc
CERTIFICATE COURSE ON
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MSME
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Though we had taken enough care to go through the questions, we shall not be responsible for
any loss or damage, resulting from any action taken on the basis of the contents. We advise
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everyone to update yourself with the latest information through RBI website and other
authenticated sources. In case you find any incorrect/doubtful information, kindly update us
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also (along with the source link/reference for the correct information) as lot of questions were
shared by many people.
January 2019 K Murugan, MCA MBA CAIIB

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MSME – GENERAL INFORMATION
PASSING CRITERIA:
Minimum marks for pass in the subject is 50 out of 100.
EXAMINATION FEES* :
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For Members
First attempt - Rs.1,000/- *
Subsequent each attempt - Rs.1,000/- *
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For Non-Members
First attempt - Rs.1,500/- *
Subsequent each attempt - Rs.1,500/- *
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* Plus convenience charges and Taxes as applicable
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Please Note : Candidates are required to Register for every attempt separately.
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As a measure to streamline the traffic for registration, Institute will charge regular examination
fee to candidates who registers for the examination during the regular open period of
registration. For the extended days of registration, late fee of Rs.200 plus taxes, will be charged
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in addition to regular examination fee. This extended days of registration, also gives candidates
addition opportunity to register for the examination, having missed the regular open period of
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registration.
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The fee once paid will NOT be refunded or adjusted on any account.
MEDIUM OF EXAMINATION :
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Examination will be conducted in English only.

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PATTERN OF EXAMINATION:
(i) Question Paper will contain 120 objective type multiple choice questions for 100 marks.
(ii) The examination will be held in Online Mode only
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(iii) There will NOT be negative marking for wrong answers.

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DURATION OF EXAMINATION:
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The duration of the examination will be of 2 hours.
PERIODICITY AND EXAMINATION CENTRES:

a) Examination will be conducted on pre-announced dates published on IIBF Web Site. Institute
conducts examination on half yearly basis, however periodicity of the examination may be
changed depending upon the requirement of banking industry.
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b) List of Examination centers will be available on the website. (Institute will conduct
examination in those centers where there are 20 or more candidates.)
STUDY MATERIAL / COURSEWARE

The Institute has developed a courseware to cover the syllabus. The courseware (book) for the
subject/s will be available at outlets of publisher/s. Please visit IIBF website www.iibf.org.in
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under the menu “Exam Related” for details of book/s and address of publisher/s outlets.
Candidates are advised to make full use of the courseware. However, as banking and finance
fields are dynamic, rules and regulations witness rapid changes. Therefore, the courseware
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should not be considered as the only source of information while preparing for the
examinations. Candidates are advised to go through the updates put on the IIBF website from
time to time and go through Master Circulars / Master Directions issued by RBI and publications
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of IIBF like IIBF Vision, Bank Quest, etc. All these sources are important from the examination
point of view. Candidates are also to visit the websites of organizations like RBI, SEBI, BIS, IRDAI,
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FEDAI etc. besides going through other books & publications covering the subject / exam
concerned etc. Questions based on current developments relating to the subject / exam may
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also be asked.
Cut-off Date of Guidelines / Important Developments for Examinations

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The Institute has a practice of asking questions in each exam about the recent developments /
guidelines issued by the regulator(s) in order to test if the candidates keep themselves abreast
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of the current developments. However, there could be changes in the developments /

guidelines from the date the question papers are prepared and the dates of the actual
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examinations.
In order to address these issues effectively, it has been decided that:

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(i) In respect of the examinations to be conducted by the Institute for the period February to
July of a calendar year, instructions / guidelines issued by the regulator(s) and important
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developments in banking and finance up to 31st December will only be considered for the
purpose of inclusion in the question papers".
(ii) In respect of the examinations to be conducted by the Institute for the period August to
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January of a calendar year, instructions / guidelines issued by the regulator(s) and important
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developments in banking and finance up to 30th June will only be considered for the purpose of
inclusion in the question papers.
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SYLLABUS
The details of the prescribed syllabus which is indicative are furnished below. However, keeping
in view the professional nature of examinations, all matters falling within the realm of the
subject concerned will have to be studied by the candidate as questions can be asked on all
relevant matters under the subject. Candidates should particularly prepare themselves for
answering questions that may be asked on the latest developments taking place under the
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various subject/s although those topics may not have been specifically included in the syllabus.
Any alterations made will be notified from time to time. Further, questions based on current
developments in banking and finance may be asked.
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Candidates are advised to refer to financial news papers / periodicals more particularly “IIBF
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VISION” and “BANK QUEST” published by IIBF.
Certificate Examination in MSME
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I. Setting up MSME oc
Evolution, Definition of SMEs, Characteristics, Advantage of MSME & Its role & Significance in
economic development, Role in Economic Development., Needs of SMEs. Forms of
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Organisations; Proprietary, Partnership, HUFs, LLP, Company etc., Establishing SMEs:
Environmental Scanning, Market Assessment, Technology, Selection of Site, etc., -
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Organisational Structures – Rules &Regulations - Gender & Entrepreneurial Development.
II. MSMEs: Policy, Regulatory and Legal Framework

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Policy Framework for SMEs - Policy Shifts since 1991 – Regulatory Framework - Laws and
Regulations for SMEs - SME Development Bill, 2005 – LLP Act, Changing Policy Framework &
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SME Strategies, Registration of SME Unit – Procedure, CIBIL, CERSAI, D & B report, MIRA report.
III. Institutional Framework & MSME Financing

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Institutions - Central Government - SSI Board, SIDO, SISI, PPDCs, RTCs, CFTI, NISIET, NIESBUD,
NSIC - State Government: Directorate of Industries, DICs, SFCs, SIDC / SIIC, SSIDC - Financial
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Institutions & Banks; SIDBI, Commercial Banks, RRBs and Co-op. Banks etc., - Enterprise
Perspective - Banker's Perspective.
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IV. Financing Options & Modes

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Sources of finance and methods of financing SMEs, relevance of quasi capital and own money in
business - Venture Capital, Hybrid Capital, special financial products for SMEs, Assessment of
Term Finance / Working Capital for SMEs - Credit Risk Management of SMEs - Appraisal,
assessment, collaterals, documentation, inspection, follow-up and monitoring and review,
Credit Scoring models, Standing and liquidity assessment, Credit pricing of SMEs, Micro
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Enterprise finance, P.S. guidelines related to MSME, Mudra Bank, Factoring, Structure Approach
to financing SME
a. Daheja Committee
b. Chore Committee
c. Tandon Committee
d. Nayak Committee
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e. Kapoor Committee
V. MSME Development
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Business Development Service Providers - Role & Responsibilities -Improving Competitiveness
of SMEs through Enhancing Productivity - Market Promotion and Development - technological
Development in SMEs -Environmental Impact Assessment, Modernisation issues (technological
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and quality up gradation), Role and Functions of Credit Guarantee Trust for small industries
(CGTSI), CGTMSE, PMEGP, TUFS, NEF.
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VI. Clusters and Cluster Development oc
What are Clusters? - Why Clusters - Types of Clusters - Advantages and Disadvantages - Role of
Clusters - Setting up of Clusters - Approaches to Develop Cluster Strategies - Measuring Cluster
Development – Critical Success Factors (lending economics to clusters from the angle of
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bankers and borrowers) - Policy Environment - Successful Clusters; India and Global.
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VII. MSME: Rehabilitation

Sickness-symptoms, warning signals, diagnosis and prescriptions, rehabilitation, restructuring,
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holding on operations, work out, NPA management, recovery options, legal aspects / options,
securitization and exit options / alternatives.
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VIII.Future of MSMEs -
Micro Finance Approach to SMEs - Linkages with Agriculture and industry - IT and SMEs -
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Relationship banking and its impact in SME development - WTO issues, impact on SMEs -
BASEL-II – globalization issues, impact, intermediation opportunities and Emerging issues
affecting SMEs. Challenges & opportunities of MSME under current scenario.
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MSME
Identification of beneficiaries under PMEGP will be done at the district level by a Task Force consisting of
representatives from ...... (i) KVIC/State KVIB, (ii) State DICs, (iii) Banks
a. Only (i) and (ii)
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b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
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Ans - a
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Under the education loan scheme devised by Reserve bank of India?
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a. Repayment of loan will commence after two years of completion of course or six month after getting
job, whichever is earlier oc
b. Total repayment period including holiday period should not exceed five years from the date of
completion of course
c. Undertaking to repay the loan in the stipulated manner is to be executed by the students
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d. All
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Ans - b
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What is the MSME Public Procurement Portal called?
a. MSME Samjhauta
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b. MSME Sambandh
c. MSME Sandesh
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d. MSME Sampark
Ans - b
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RBI has advised that no collateral security should be insisted for SMEsadvances upto Rs.......
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a. 5 lacs
b. 10 lacs
c. 25 lacs
d. 50 lacs
Ans - b
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The approach of ‘micro-credit’ or ‘banking with the poor’ is comparatively a new concept in the field of
rural credit. This approach has been tried very successfully in which of the following countries?
a. Bangladesh
b. India
c. China
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d. Japan
Ans - a
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As per recent RBI guidelines, how much (%) of the advances to Micro & Small Enterprises should go to
Micro enterprises (manufacturing) having investment in P&M upto Rs.5.00 lakhs and Micro enterprises
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(services) having investment in equipment upto Rs.2.00 lakhs?
a. 40
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b. 20
c. 50
d. 35
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Ans - a
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MSME is defined under which act?

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a. MSME Act, 2004

b. MSMED Act, 2006
c. MSMED Act, 1999
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d. MSME Act, 2001
Ans - b
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The quantum of loan/limit will be ...... times of the net annual income of the farmer from both farm &
non-farm activities under UCO Kisan Samridhi Yojna (UKSY) – Revised?
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a. 10
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b. 6
c. 8
d. 5
Ans - d
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Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was set up by Government of
India and which of the following bank?
a. RBI
b. NABARD
c. SIDBI
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d. MUDRA
Ans - c
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Which of the following is not correct regarding margin money (subsidy) under PMEGP?
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a. Subsidy should be kept in the Term Deposit Receipt of three years
b. No interest will be paid on the TDR & no interest to be charged on loan on corresponding amount of
TDR
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c. Subsidy will be credited to the Borrowers loan account after three years from the date of first
disbursement to the borrower
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d. If loan goes bad before 3 year period, due to reasons, beyond the control of the beneficiary, subsidy
can be credited to loan account before 3 years
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Ans - d
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Under which situations, proportionate or entire subsidy for working capital component has to be
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returned? (i) When utilization of limit does not touch 100% limit of CC on any day within three years of
lock in period, (ii) When utilization of the sanctioned limit is less than 75%
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a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
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d. Both (i) and (ii)

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Ans - c
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Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if ......
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a. Any of the borrowal account of the enterprise remains NPA for ten months or more
b. Any of the borrowal account of the enterprise remains NPA for eight months or more
c. Any of the borrowal account of the enterprise remains NPA for five months or more
d. Any of the borrowal account of the enterprise remains NPA for three months or more
Ans - d
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Make in India programme aims ...... (i) To increase GDP growth, (ii) To increase tax revenue, (iii) Aims at
high quality standards

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Ans - d
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Which of the following schemes have been merged to formulate Swarnajayanti Shahari Rozgar Yojna
(SJSRY)? (i) Nehru Rozgar Yojna, (ii) Urban Basic Services for the Poor (UBSP), (iii) Prime Minister’s
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Integrated Urban Poverty Eradication Programme (PMIUPEP)
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Ans - d
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The material: labour ratio for works under Urban Wage Employment Programme (UWEP) of SJSRY is ......
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a. 60:40
b. 50:50
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c. 40:60
d. 45:65
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Ans - a
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Community Development Societies (CDSs) belongs to which component of SJSRY?

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a. Urban Women Self Help Programme (UWSP)

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b. Urban Self Employment Programme (USEP)

c. Urban Wage Employment Programme (UWEP)
d. Urban Community Development Network (UCDN)
Ans - d
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Market failure refers to ......
a. Imperfect markets
b. Perfect markets
c. Traditional markets
d. Both a and b above
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Ans - b
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What is the delegated lending power of a Senior Manager of a branch for extending advances to traders
for distribution of inputs viz., fertilizers, insecticides, seeds/cattle-feed and poultry feed etc under UCO
Kisan Samridhi Yojna (UKSY) – Revised?
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a. Rs 7.50 lakh
b. Rs 15.00 lakh
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c. Rs 8.00 lakh
d. Rs 10.00 lakh
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Ans - b
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MSME loans covered under Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) attracts
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risk weight for capital adequacy purpose

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a. 0
b. 5
c. 10
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d. 50
Ans - a
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Which of the following is/are objective/s of the Scheme for JLG Financing? (i) To augment flow of credit
to farmers, especially small, marginal, tenant farmers, oral lessees, share croppers/individuals taking up
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farm activities, (ii) To augment flow of credit to Micro Entrepreneurs/Artisans/Individuals in Non Farm
Sector, (iii) To build mutual trust and confidence between bank and the target group
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Ans - d
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Governing Council of Skill India Mission is Chaired by
a. MSME Minister
b. Finance Minister
c. Prime Minister
d. Deputy Chairman of NITI Ayog
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Ans - c
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All manufacturing units defined in MSMED Act,2006 when engaged in exports are classified as priority
sector advances.
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a. No, only Micro and small manufacturing units fall under the category of priority sector
b. No, only Micro manufacturing units fall under the category of priority sector
c. No, only small manufacturing units fall under the category of priority sector
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d. Yes, all units fall under the category of priority sector
Ans - a
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As per recent RBI guidelines, how much (%) of the advances to Micro & Small Enterprises should go to
Micro enterprises (manufacturing) having investment in P&M above Rs.5.00 lakhs and upto Rs.25.00
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lakhs and Micro enterprises (services) having investment in equipment above Rs.2.00 lakhs and upto
Rs.10.00 lakhs?
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a. 40
b. 20
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c. 50
d. 35
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Ans - b
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How lending to JLG will be classified?

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a. Indirect Agriculture Advances

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b. MSE
c. Indirect Agriculture Advances/ MSE
d. Direct Agriculture Advances/ MSE
Ans - d
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For foreign banks, operating in India, overall target for priority sector lending is ......
a. 32%
b. 42.75%
c. 33%
d. 40%
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Ans - a
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Which of the following are financing models of JLG? (i) Model A—Financing individuals in the JLG, (ii)
Model B—Financing JLG as a group
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a. Only (i)
b. Only (ii)
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Ans - d
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The limit under cash credit facility is worked out on the basis of ...... (i) Crops to be cultivated and
cropping intensity, (ii) Area under cultivation and irrigation facilities available, (iii) Scale of finance for
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the concerned crops

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Ans - d
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SGSY is operative from ......

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a. April 1, 1999
b. April 1, 2000
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c. May 1, 1999
d. May 1, 2000
Ans - a
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SGSY is funded by the Centre and the States in the ratio ......
a. 60:40
b. 75:25
c. 70:30
d. 80:20
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Ans - b
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Which of the following schemes have been restructured for launching SGSY? (i) IRDP, TRYSEM, (ii)
DWCRA, SITRA, (iii) GKY, MWS
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Ans - d
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Funding under SJSRY will be shared between the Centre and the States in the ratio of ......
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a. 60:40
b. 75:25
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c. 70:30
d. 50:50
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Ans - b
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In Skill training for employment promotion amongst urban poor (STEP-UP) under SJSRY, the average unit
cost allowed for training per trainee will not exceed ......
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a. Rs 5,000
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b. Rs 10,000
c. Rs 15,000
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d. Rs 20,000
Ans - b
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Under SGSY, a Self Help Group may generally consist of ...... persons
a. 10-15
b. 10-20
c. 5-15
d. 5-10
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Ans - b
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Which of the following organization prepares rural credit plans on annual basis for all districts in India,
which is turn form the base for annual credit plans of all rural financial institutions?
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a. SIDBI
b. NABARD
c. RBI
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d. Indian bank’s association
Ans - b
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Which of the following is not correct regarding project cost in case of PMEGP scheme?
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a. Project cost will include Capital Expenditure and one cycle of Working Capital
b. Projects without Capital Expenditure are not eligible for financing under the Scheme
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c. Projects costing more than Rs.5 lakh, not requiring working capital, need clearance from RO
d. None of these
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Ans - d
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Which of the following is correct regarding training of beneficiaries under PMEGP? (i) First instalment of
loan will be released only after completion of EDP training of at least 2 weeks, (ii) If beneficiary has
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undergone training from the recognized institution, no further EDP training is required.
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a. Only (i)
b. Only (ii)
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Ans - b
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Advances to manufacturing units which are classified as medium enterprises under MSMED Act, 2006
fall under the category of ......
a. Priority sector advances

b. Non-priority sector C&I advances
c. Priority sector C&I advances
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d. Indirect priority sector advances
Ans - b
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As per recent RBI guidelines, what is the share of Micro enterprise advances as part (%) of total
advances to MSE (Micro & SmallEnterprises)?
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a. 50
b. 80
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c. 60
d. 55
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Ans - c
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For whom was a radio jingle released by MSME ministry on 20th Sept 2017?
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a. National SC ST Hub
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b. Marginalised communities
c. Minority communities
d. Both a and c
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Ans - a
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...... financing is raising money by selling part of the ownership of the business to investors.
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a. Debt
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b. Equity
c. Venture capitalist
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d. Public offering
Ans - b
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With which company our bank has tied up with for personal accident insurance scheme for KCC holders?
a. National Insurance Corporation Ltd.

b. New India Assurance Company.
c. Bajaj Allianz General Insurance Company.
d. Reliance General Insurance Company Limited.
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Ans - c
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What is the risk coverage under the personal accident insurance scheme for KCC holders with the Bajaj
Allianz if permanent total disability takes place?
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a. 40,000
b. 75,000
c. 62,500
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d. 50,000
Ans - c
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Of the following, which one would not be considered an alternative to independent entrepreneurship?
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a. Franchise
b. Spin-off
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c. Intrapreneurship
d. Extrapreneurship
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Ans - d
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What is the loan limit under JLG financing scheme by banks in case of farm activities?
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a. Rs 30,000
b. Rs 40,000
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c. Rs 25,000
d. Rs 50,000
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Ans - d
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What is the age limit for beneficiaries to apply under PMEGP?
a. Above 18 years
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b. 18 years
c. Below 18 years
d. 21 years
Ans - a
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Of the following, which is best identified as an independent entrepreneurship that produces a product
or service that originated in a large company?
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a. Diversification
b. Intrapreneurship
c. Trade-off
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d. Spin-off
Ans - d
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Which one of the following is not true in regard to SGSY?

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a. SGSY is a holistic scheme covering all aspects of self-employment such as organisation of the poor into
Self Help Groups, training, Credit, technology, infrastructure & marketing.
b. The Scheme will be implemented by Commercial Banks, Regional Rural Banks and Cooperative Banks.
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c. SGSY will focus on vulnerable sections of the rural people. Accordigly, the SC/ST will account for at
least 60 percent, women 30 percent and the disabled 3 percent of those assisted.
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d. The assisted poor families known as Swarozgaries can be either individuals or groups and would be
selected from BPL families by a three member team consisting of Block Development Officer (BDO),
Banker and Sarpanch.
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Ans - c
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Under which situations, proportionate or entire subsidy for working capital component has to be
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returned?
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a. When utilization of limit does not touch 100% limit of CC on any day within three years of lock in
period.
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b. When average utilization of the sanctioned limit is less than 75%

c. When average utilization of the sanctioned limit is lesS than 80%
d. Either a or b
Ans - d
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If the repayment period in a SGSY loan is 5 years, what would be the corresponding lock-in period?
a. 3 years
b. 4 years
c. 5 years
d. No lock-in period
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Ans - a
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t.c
What is the rate of interest for production credit/KCC/Crop loan upto Rs3.00lac where interest
subvention is available under UCO Kisan Samridhi Yojna (UKSY) – Revised?
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a. 7% p.a.
b. 8% p.a.
c. 9% p.a.
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d. 10% p.a.
Ans - a
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What is the educational qualification for beneficiaries to apply under PMEGP for project cost above Rs
10 lac in manufacturing sector and Rs 5 lac in service sector?
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a. VI pass
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b. IX pass
c. VIII pass
d. VII pass
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Ans - c
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Primary security in the context of CGTMSE mean ...... (i) Assets created out of the credit facility, (ii) Land
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& building of factory/office/godown etc which pertains to the unit and associated with the project and is
unencumbered, (iii) Personal guarantee of the proprietor
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Ans - d
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SMECFL (SME collateral free loans) are available for limits ......
a. From Rs.5.00 lakhs to Rs.1.00 Crores

b. From Rs.10.00 lakhs to Rs.1.00 Crores
c. Upto Rs.10.00 lakhs
d. None of the above
om
Ans - d
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t.c
As per recent RBI guidelines ......
a. No collateral should be accepted for all MSE sector manufacturing loans upto Rs.10.00 lakhs
es
b. No collateral should be accepted for all MSE sector service enterprise loans upto Rs.5.00 lakhs
c. No collateral should be accepted for all MSE sector manufacturing & sector service loans upto Rs.5.00
lakhs
kt
d. No collateral should be accepted for all MSE sector manufacturing & sector service loans upto
Rs.10.00 lakhs
oc
Ans - d
m
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In franchising, the entrepreneur assumes fewer risks because the franchise provides all but which one of
iib
the following?
ca
a. Established market for the product

b. Management assistance in operating the business
c. Economies of scale for purchasing
iib
d. Oversale of rights
Ans - d
.ja
.............................................
w
Consumption loan above under priority sector can be granted to ...... (i) Rural artisans, (ii)
Small/Marginal farmers, (iii) Landless labourers
w

w

Ans - d
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For special states like Arunachal Pradesh, Assam, Meghalaya, Mizoram, Nagaland, Manipur, Tripura,
Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakand, funding under SJSRY will be shared
between the Centre and the States in the ratio of ......
a. 60:40
b. 75:25
om
c. 90:10
d. 50:50
Ans - c
t.c
.............................................
What is the minimum or maximum educational qualification prescribed for selection of beneficiaries
es
under Urban Self Employment Programme (USEP) of SJSRY?
a. VIII standard, Secondary school final
kt
b. No educational qualification is prescribed
c. VI Standard, IX Standard
d. VII Standard, IX Standard
oc
m
Ans - b
.............................................
iib
In production sector, a micro enterprise is an enterprise where investment in plant and machinery does
not exceed ......
ca
a. Rs 10 lakh
b. Rs 15 lakh
iib
c. Rs 20 lakh
d. Rs 25 lakh
.ja
Ans - d
.............................................
w
What is the educational qualification for beneficiaries to apply under PMEGP for project cost below Rs
w
10 lac in manufacturing sector and Rs 5 lac in service sector?

w
a. VI pass
b. IX pass
c. No educational qualification bar.
d. VII pass
Ans - c
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What is the target for DRI advances under priority sector to be achieved by domestic commercial banks?
a. 1.5% of total advances outstanding as at the end of the previous year

b. 1% of total advances outstanding as at the end of the previous year
c. 2% of total advances outstanding as at the end of the previous year
d. 2.5% of total advances outstanding as at the end of the previous year
om
Ans - b
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t.c
Which of the following is correct regarding training of beneficiaries under PMEGP? (i) First instalment of
loan will be released only after completion of EDP training of at least 2 weeks, (ii) If beneficiary has
undergone training from the recognized institution, no further EDP training is required.
es
a. Only (i)
b. Only (ii)
kt
oc
Ans - d
m
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For which of the following category of beneficiaries, targets have been set up under PMEGP?
iib
a. SC/ST
ca
b. Women
c. physically handicapped
d. None of these
iib
Ans - d
.............................................
.ja
Village Industry under PMEGP, means a unit located in the rural area which produces any goods or
w
renders any service with or without the use of power and in which the fixed capital investment per head
of a full time artisan or worker does not exceed ......
w
a. Rs. 1 lakh in plain areas

w
b. Rs.1.50 lakh in hilly areas

c. Rs 2 lac in North East
d. Both a & b
Ans - c
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In service sector, a medium enterprise is an enterprise where the investment in equipment is more than
Rs. 2 crore but does not exceed ......
a. Rs 5 crore
b. Rs 10 crore
c. Rs 15 crore
om
d. Rs 20 crore
Ans - a
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t.c
A composite loan limit of ...... can be sanctioned by banks to enable the MSME entrepreneurs to avail of
their working capital and term loan requirement through Single Window.
es
a. Rs 10 lakh
b. Rs 25 lakh
kt
c. Rs 50 lakh
d. Rs 1crore
oc
Ans - d
m
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Term loan under UCO Kisan Samridhi Yojna (UKSY) – Revised is repayable within a maximum period of
iib
......
ca
a. 24 months
b. 36 months
c. 48 months
iib
d. 60 months
Ans - d
.ja
.............................................
w
Which of the following is true in respect of the target for DRI advances under priority sector to be
achieved by domestic commercial banks? (i) Not less than the 40% of the total advances granted under
w
DRI Scheme go to scheduled caste/scheduled tribes, (ii) Atleast two third of DRI advances should be
granted through rural and semi-urban branches
w
a. Only (i)
b. Only (ii)
Ans - d
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What should be the family income for beneficiaries under PMEGP?
a. Rs36000 from all sources

b. Rs60000 from all sources
c. Rs72000 from all sources
d. No income ceiling.
om
Ans - d
.............................................
t.c
What is the unit project cost under Urban Self Employment Programme (USEP) of SJSRY?
a. Rs 1,00,000
es
b. Rs 2,00,000
c. Rs 50,000
d. Rs 1,20,000
kt
Ans - b
.............................................
oc
m
What is the unit project cost under Urban Women Self Help Programme (UWSP) of SJSRY?
a. Rs 3,00,000
iib
b. Rs 2,00,000
c. No maximum limit
ca
d. Rs 5,00,000
Ans - c
iib
.............................................
What is the loan limit under JLG financing scheme by banks in case of Non-farm activities?
.ja
a. Rs 30,000
w
b. Rs 40,000
c. Rs 25,000
w
d. Rs 50,000
w
Ans - c
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Swarozgaries are required to undergo basic orientation programme for minimum skill development. For
how many days, this training is generally conducted?
a. 2 days
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b. 3 days
c. 4 days
d. 5 days
Ans - a
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om
Which of the following is true? (i) PMEGP is a central sector scheme to be administered by the Ministry
of Micro, Small & Medium Enterprises (MOMSME), (ii) PMEGP scheme will be implemented by Khadi &
Village Industries Commission (KVIC), a statutory organisation under the administrative control of the
t.c
Ministry of MSME as the single nodal agency at the National level, (iii) At the state level, the scheme will
be implemented through state KVIC Directorates, State Khadi & Village Industries Boards (KVIBs) and
District Industries Centers (DICs) and banks
es
kt
oc
Ans - d
m
.............................................
Financing of both working capital and term loan simultaneously is called as?
iib
a. Mixed loan
ca
b. Composite loan
c. Combined loan
d. Loan syndication
iib
Ans - b
.............................................
.ja
Which of the following statement is correct about kisan credit card? (i) The rate of interest on kisan
w
credit cards should be same as applicable to crop loans, (ii) Banks may provide kisan credit cards to
farmers who are eligible for sanction of crop loans without any floor limit, (iii) Credit would be available
w
in the form of revolving cash credit normally valid for three years
w

Ans - d
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According to "Micro small medium enterprise development Act – 2006 (MSME Act–2006)" investment
limit for micro enterprise in manufacturing sector is ......
a. Less than Rs.10 lakh

b. Less than Rs.25 lakh
c. Rs.50 lakh
om
d. Rs.20 crore
Ans - b
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t.c
What is the maximum amount that can be sanctioned under Transport plus for Corporates?
es
a. 1 Cr
b. 5 Cr
c. 10 Cr
kt
d. 20 Cr
Ans - c
oc
.............................................
m
iib
a. 3 years
b. 4 years
ca
c. 5 years
iib
Ans - c
.............................................
.ja
What is the target to be achieved by domestic commercial banks for advances to weaker sections under
priority sector?
w
a. 10% of Adjusted Net Bank Credit (ANBC) or credit equivalent amount of Off-balance sheet exposure,
w
whichever is higher
b. 12% of Adjusted Net Bank Credit (ANBC) or credit equivalent amount of Off-balance sheet exposure,
w
whichever is higher
c. 15% of Adjusted Net Bank Credit (ANBC) or credit equivalent amount of Off-balance sheet exposure,
whichever is higher
d. No target
Ans - a
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What does ZED stand for in the context of MSMEs and certification in manufacturing?
a. Zero Defect Zero Effect

b. Zero Effect Zero Defect
c. Zero Effectiveness Zero Defectiveness
d. Zero Delays Zero Effect
om
Ans - a
.............................................
t.c
What is the annual premium the bank is to pay per KCC holder to the Bajaj Allianz for personal accident
insurance of KCC holders?
es
a. Rs 7
b. Rs 8
c. Rs 9
kt
d. Rs 10
Ans - c
oc
.............................................
m
Allianz if loss of both limbs or loss of both eyes takes place?
iib
a. 40,000
ca
b. 62,500
c. 75,000
d. 50,000
iib
Ans - b
.............................................
.ja
What role does Micro, small and Medium Enterprises(MSMEs) play in a country’s economic and
w
industrial development? (i) They have the capacity to absorb skilled and unskilled labour available in the
country., (ii) Such institutions help in distribution of income in a wide spectrum and do not allow it to get
w
concentrated in few hands or in few areas., (iii) They help in eradication of poverty by providing self –
employment opportunities.
w

Ans - d
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The maximum claim settlement under Credit Guarantee Trust Scheme for Micro and Small Enterprises
(CGTMSE) is at Rs ...... lakhs
a. 25
b. 50
c. 100
om
d. 200
Ans - d
.............................................
t.c
The quantum of loan limit under the revised General Credit Card (GCc. Scheme is ......
es
a. 1 lakh
b. 2 lakh
c. 5 lakh
kt
d. no ceiling on the loan amount
Ans - d
oc
.............................................
m
Which state government signed an agreement with Invest India on March 1, 2017?
iib
a. Bihar
b. Jharkhand
ca
c. Odisha
iib
Ans - c
.............................................
.ja
Which of the following is true in regard to computation of ‘Adjusted Net Bank Credit’ (ANBC)? (i) ANBC
denotes Net Bank Credit (NBC) plus investments made by banks in non-SLR bonds held in held to
w
maturity (HTM) category, (ii) ANBC will be computed with reference to the outstanding as on March 31
of the previous year, (iii) Deposits placed by banks with NABARD/SIDBI, as the case may be, in lieu of
w
non-achievement of priority sector lending targets/sub-targets, will not be treated as investment in non-
SLR bonds held under HTM category
w

Ans - d
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Banks will not insist on collateral security from beneficiaries under PMEGP for loans up to ......
a. Rs. 10 lakh
b. Rs. 5 lakh
c. Rs. 1 lakh
d. Rs. 50,000
om
Ans - a
.............................................
t.c
The government subsidy under PMEGP Scheme will be distributed from ......
a. KVIC
es
b. SBI
c. DIC
kt
Ans - a
.............................................
oc
m
What is the subsidy component in financing project under Urban Self Employment Programme (USEP) of
SJSRY?
iib
a. 25% of the project cost subject to a ceiling of Rs50, 000 per beneficiary.
b. 20% of the project cost subject to a ceiling of Rs50, 000 per beneficiary.
ca
c. 15% of the project cost subject to a ceiling of Rs50, 000 per beneficiary.
d. 25% of the project cost subject to a ceiling of Rs60, 000 per beneficiary.
iib
Ans - a
.............................................
.ja
What is the subsidy component in financing project under Urban Women Self Help Programme (UWSP)
of SJSRY?
w
a. 25% of the project cost subject to a ceiling of Rs 3,00,000 per group or Rs 60,000 per beneficiary
w
b. 35% of the project cost subject to a ceiling of Rs 2,50,000 per group or Rs 50,000 per beneficiary
c. 35% of the project cost subject to a ceiling of Rs 3,00,000 per group or Rs 60,000 per beneficiary
w
d. 30% of the project cost subject to a ceiling of Rs 3,00,000 per group or Rs 60,000 per beneficiary
Ans - c
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Debt Restructuring Mechanism for SMEs scheme covers fund/non-fund based out-standing upto ......
a. 1 Cr
b. 5 Cr
c. 10 Cr
d. 15 Cr
om
Ans - c
.............................................
t.c
CGTMSE (Credit Guarantee fund Trust for Micro and Small Enterprises) has been setup on the
recommendations of ......
es
a. Narashimham Committee
b. Ghosh Committee
kt
c. Chore Committee
d. Kapoor Committee
oc
Ans - d
m
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Maximum Project cost in the case of single borrower for business & service category under PMEGP is
iib
......
ca
a. Rs. 10 lakh
b. Rs. 25 lakh
c. Rs. 5 lakh
iib
d. Rs. 2 lakh
Ans - a
.ja
.............................................
w
Of the following, which is best identified when a business with an established name and product is sold
to additional owners along with the rights to distribute product?
w
a. Spin-off
w
b. Intrapreneurship
c. Trade-off
d. Franchise
Ans - d
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Which of the following is not a feature of UCO Kisan Samridhi Yojna (UKSY) – Revised?
a. Loan for both Farm & Non-farm activities are covered under the scheme
b. Loan for both short term and investment credit requirements are covered under the scheme
c. Margin is nil for loan for raising crop up to Rs. 1,00,000
d. Valuation of agricultural land upto Rs15lac can be done at branch level under this scheme
om
Ans - d
.............................................
t.c
What is the maximum loan limit per borrower under UCO Kisan Samridhi Yojna (UKSY) – Revised?
a. Rs 10 lakh
es
b. Rs 15 lakh
c. Rs 20 lakh
d. Rs 25 lakh
kt
Ans - b
.............................................
oc
m
Which of the following cards can be issued under JLG financing scheme by banks? (i) KCC, ACC, (ii) ACC,
GCC, (iii) LUCC, SCC
iib

ca

iib
Ans - d
.............................................
.ja
At present, priority sector broadly comprises the following ...... (i) Agriculture, (ii) Small scale industries,
(iii) Other activities/borrowers such as small business, retail trade, small transport operators,
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professional and self employed persons, housing ,education loans, micro credit e.t.c
w

w

Ans - d
.............................................
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What should be the age of beneficiary while applying for bank loan for a project under Urban Self
Employment Programme (USEP) of SJSRY?
a. 21 years
b. 18 years
c. 20 years
om
d. 16 years
Ans - b
.............................................
t.c
What should be the own contribution (margin) in case of General & Special category of beneficiaries
under PMEGP?
es
a. General- 10%, Special category-7.5%
b. General- 15%, Special category-10%
kt
c. General- 15%, Special category-5%
d. General- 10%, Special category-5%
oc
Ans - d
m
.............................................
Which of the following is not eligible beneficiary under PMEGP Scheme?

iib
a. Institutions registered under Societies Registration Act, 1860

ca
b. Production Co-operative Societies

c. Charitable Trusts
d. Exiting Units (under PMRY, REGP) having availed government subsidy
iib
Ans - d
.............................................
.ja
...... is best described as doing something differently and has been described as discontinuous or
w
complementary change.
w
a. Entrepreneurship
b. Innovation
w
c. Spin-off
d. Variance
Ans - b
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Which of the following is indirect finance in agriculture under priority sector?
a. Short term loans for raising crops

b. Loans to small and marginal farmers for purchase of land for agricultural purposes
c. Credit for purchase and distribution of fertilizers, pesticides, seeds etc
d. Working capital and term loans for financing production and investment requirements for agriculture
om
and allied activities
Ans - c
.............................................
t.c
PMEGP is applicable in which of the following areas?
es
a. Rural only
b. urban areas only
c. Both Rural and urban areas
kt
d. None of these
Ans - c
oc
.............................................
m
Which of the following is correct regarding project cost in case of PMEGP scheme? (i) Project cost will
include Capital Expenditure and one cycle of Working Capital, (ii) Projects without Capital Expenditure
iib
are not eligible for financing under the Scheme, (iii) Projects costing more than Rs.5 lakh, not requiring
working capital, need clearance from RO
ca

iib

.ja
Ans - d
.............................................
w
Which of the following is not correct regarding PMEGP scheme?

w
a. Both existing and new projects are eligible

w
b. Only one person from one family is eligible

c. Family includes beneficiary and spouse
d. No concession in interest rate
Ans - a
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The first step in training design is the identification of
a. Trainee
b. Training Needs
c. Training Institution
d. Training Materials
om
Ans - b
.............................................
t.c
Active Methods of Training are ...... (i) Lecture, (ii) Group Discussion, (iii) Case Study
es
kt
Ans - c
.............................................
oc
m
What is the repayment period and moratorium in financing project under Urban Self Employment
Programme (USEP) of SJSRY?
iib
a. Repayment-3 to 5 years, Moratorium- 6 to 18 months

b. Repayment-3 to 7 years, Moratorium- 6 to 18 months
ca
c. Repayment-3 to 7 years, Moratorium- 6 to 12 months

d. Repayment-3 to 7 years, Moratorium- 12 to 18 months
iib
Ans - b
.............................................
.ja
How many vehicles the transport operator should have under Transport Plus?
w
a. 10
b. 20
w
c. 30
d. 40
w
Ans - a
.............................................
Which of the following institution is meant for small and medium enterprises?
a. RBI
…………………………………………………………………………………………………………………………………………………………………
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b. SIDBI
c. IFCI
d. NABARD
Ans - b
.............................................
om
What is the eligibility under UCO Kisan Samridhi Yojna (UKSY) – Revised?
a. Farmers residing within the service area of the branch
t.c
b. Farmers satisfying KYC norms.
c. Both a & b
d. None of the above.
es
Ans - c
.............................................
kt
India on 13th Dec 2016 signed an agreement for MSME financing with which bank?
oc
a. IBRD
m
b. WB
c. ADB
iib
Ans - a
ca
.............................................
Management tactics purported to maximize innovation for an entrepreneurship include all but which of
iib
the following items?
a. Cutting of losses
.ja
b. Culture
c. Benchmarking
w
d. Customer orientation
w
Ans - c
.............................................
w
Which of the following is/are eligible for loans under the PMEGP scheme? (i) Self Help Groups, (ii)
Institutions registered under Societies Registration Act, 1860, (iii) Production Co-operative Societies

…………………………………………………………………………………………………………………………………………………………………
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Ans - d
.............................................
Which of the following is direct finance in agriculture under priority sector?
om
a. Loans upto Rs40lac granted for purchase and distribution of inputs for the allied activities such as
cattle feed, poultry feed etc
b. Finance to Joint Liability Groups (JLGs) for agriculture and allied activities
t.c
c. Finance for setting up of Agriclinic and Agribusiness centers
d. Overdrafts upto Rs25000 (per account), granted against “no-frills” accounts in rural and semi-urban
areas
es
Ans - b
.............................................
kt
What is the margin and collateral norms for financing under JLG financing scheme by banks?
oc
a. 5%, Nil
m
b. Nil, Nil
c. 15%, 50%
d. 10%, Nil
iib
Ans - b
ca
.............................................
Micro (manufacturing) enterprises are defined as those whose original investment in Plant and
iib
machinery do not exceed Rs. ......
a. 5 lakhs
.ja
b. 10 lakhs
c. 25 lakhs
w
d. 50 lakhs
w
Ans - c
.............................................
w
What is the subsidy component in PMEGP for special categories of beneficiaries like
SC/ST/OBC/Minorities/Women/Ex-servicemen/P.H./NER/Hill & Border areas etc.?
a. Urban-15%, Rural- 35%

b. Urban-10%, Rural- 20%
c. Urban-25%, Rural- 35%
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d. Urban-10%, Rural- 35%
Ans - c
.............................................
Which of the following is not true about PMEGP scheme?
om
a. There is no condition for education for project up to Rs 10 lac for industry and Rs 5 lac for service.
b. There is no limit on Family income
c. It is not applicable in J&K.
t.c
d. it covers both the rural as well as urban centres
Ans - c
es
.............................................
What is the lending power of Scale I, II & III Officers in respect of PMEGP loan?
kt
a. Rs 2.00 lac, Rs 3.00 lac, Rs 4.00 lac
b. Rs 2.00 lac, Rs 4.00 lac, Rs 5.00 lac
oc
c. Rs 2.00 lac, Rs 3.00 lac, Rs 5.00 lac
m
d. Rs 1.00 lac, Rs 3.00 lac, Rs 5.00 lac
Ans - c
iib
.............................................
ca
MSME has launched which important initiatives on the sidelines of the 14th MSME National Board
Meeting at Vigyan Bhavan in August 2016?
iib
a. MSME Databank Portal

b. Online Facilitation Web Portal
c. Both of the above
.ja
d. Neither of the above

w
Ans - c
.............................................
w
To be eligible for assistance under PMEGP, family income of the applicant should not exceed ......
w
a. Rs. 24,000 p.a.

b. Rs. 30,000 p.a.
c. Rs. 40,000 p.a.
d. No limit
Ans - d
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In respect of CGTMSE (Credit Guarantee fund Trust for Micro and Small Enterprises) No collateral and no
third party guarantee for fund based and non fund based credit facilities upto ......
a. Rs. 10 lakhs
b. Rs. 5 lakhs
c. Rs. 100 lakhs
om
d. Rs. 5 lakhs
Ans - b
.............................................
t.c
Upto what age of the KCC holder, the coverage of personal accident insurance scheme will remain in
force?
es
a. 62 years
b. 75 years
kt
c. 70 years
d. 66 years
oc
Ans - c
m
.............................................
Under PMEGP, the repayment period can be after moratorium period as per bank discretion.
iib
a. 3 to 5 year
ca
b. 3 to 7 year
c. 5 to 7 year
d. 5 to 9 year
iib
Ans - b
.............................................
.ja
For the purpose of PMEGP scheme, which of the following is/are included in special category? (i) SC / ST,
w
OBC, (ii) Minorities, Women, (iii) Ex servicemen & Physically handicapped

w

w

Ans - d
.............................................
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What is the loan amount to be disbursed in financing project under Urban Self Employment Programme
(USEP) of SJSRY?
a. 95% of the project cost (inclusive of 15% subsidy)

b. 90% of the project cost (inclusive of 25% subsidy)
c. 95% of the project cost (inclusive of 25% subsidy)
om
d. 95% of the project cost (inclusive of 20% subsidy)
Ans - c
.............................................
t.c
es
a. 3 years
b. 4 years
c. 5 years
kt
Ans - b
oc
.............................................
m
As per the guidelines Reserve Bank of India, the total interest charged/debited to an account should not
exceed the principal amount in respect of short-term agriculture advances granted to ......
iib
a. Small farmers
ca
b. Marginal farmers
c. Small and marginal farmers
d. Landless labourers
iib
Ans - c
.............................................
.ja
What is the target for providing credit to units in Micro & Small Enterprises sector under priority sector
w
lending by foreign banks?

w
whichever is higher
w
whichever is higher
whichever is higher
d. No target
Ans - a
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As per recent guidelines, 40% of the total advances to micro and small enterprises sector should go to
micro (manufacturing) enterprises having investment in plant and machinery upto ...... Lakh and micro
(service) enterprises having investment in equipment upto ...... Lakh
a. 10 & 4
b. 5 & 2
om
c. 10 & 5
d. 2 & 5
Ans - a
t.c
.............................................
Which of the following is indirect finance in Micro and Small Enterprises under priority sector?
es
a. Credit to small enterprises engaged in manufacture/production, processing or preservation of goods
and whose investment in plant & machinery does not exceed Rs 5 crore
kt
b. Credit to micro enterprises engaged in manufacture/production, processing or preservation of goods
and whose investment in plant & machinery does not exceed Rs 25 lac, irrespective of the location of
the unit
oc
c. Credit to small enterprises engaged in providing/rendering of services and whose investment in
m
equipment does not exceed Rs 2 crore
d. Credit to persons involved in assisting the decentralized sector in the supply of inputs to and
marketing of outputs of artisans, village and cottage industries
iib
Ans - d
ca
.............................................
Bank can provide finance to transport operations for the purchase of ......
iib
a. Trucks, matadors
b. Buses
.ja
c. Taxis and auto rickshaws

d. Any of these
w
Ans - d
w
.............................................
w
Which one of the following is true? (i) All the JLG members may be encouraged to open an individual
“no frills” account, (ii) If the JLG chooses to undertake savings as well as credit operations through the
group mechanism, such groups should open a savings account in the name of JLG with at least two
members being authorised to operate the account on behalf of the group
a. Only (i)
b. Only (ii)
…………………………………………………………………………………………………………………………………………………………………
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…………………………………………………………………………………………………………………………………………………………………

Ans - d
.............................................
om
Which of the following is investment line of credit under UCO Kisan Samridhi Yojna (UKSY) – Revised?
a. Cash Credit for raising various crops

b. Extending loan for development of land, irrigation facility etc
t.c
c. Short term credit for maintenance of tractor, farm machinery and implements
d. Short term credit for allied activities like dairy, poultry etc
es
Ans - b
.............................................
kt
Banks should lend at least ...... % of advances under PMEGP to SC/ST
a. 10
oc
b. 22.5
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c. 35
d. None of these
iib
Ans - d
.............................................
ca
Allianz if death takes place due to accident (within 12 months of accident) caused by outward, violent &
iib
visible means?
a. 40,000
.ja
b. 60,000
c. 75,000
w
d. 50,000
w
Ans - d
.............................................
w
A/An ...... is defined as the blueprint describing the business strategy for entering the marketplace and
explains the business to potential investors.
a. business alliance
b. spin-off
c. intrapreneurship
…………………………………………………………………………………………………………………………………………………………………
Facebook Groups -
…………………………………………………………………………………………………………………………………………………………………
d. business plan
Ans - d
.............................................
Which one of the following factors is not included in the Market Gap?
om
a. Innovations
b. Lack of capital
c. Lack of premises
t.c
d. Technology
Ans - d
es
.............................................
What is the subsidy component in PMEGP for general beneficiaries?
kt
a. Urban-15%, Rural- 25%
b. Urban-10%, Rural- 20%
oc
c. Urban-15%, Rural- 20%
m
d. Urban-10%, Rural- 25%
Ans - a
iib
.............................................
ca
Which of the following does not belong to negative list of activities under PMEGP?
a. Opening of grocery and stationary shop

iib
b. Farm related activities like Goatery, Piggery, Poultry etc

c. Cycle rickshaw
d. Pan, Beedi, Cigarette shop
.ja
Ans - c
w
.............................................
w
Under revised definition of priority sector retail transporter is defined as ......

w
a. Transporter having 10 vehicles including the one financed by us

b. Owner having 10 vehicles at the most
c. Owners having any No of vehicles the cost of which does not exceed Rs. 2 Crs
d. Owner having 10 vehicles upto a max of Rs. 3 Crs
Ans - c
.............................................
…………………………………………………………………………………………………………………………………………………………………
Facebook Groups -
…………………………………………………………………………………………………………………………………………………………………
Entrepreneurships require financial backing in order to get started in the business world. Which of the
following is not one of the methods commonly utilized to obtain the financial resources needed?
a. Equity
b. Commercial loans
c. Personal finances provided by friends
om
d. Venture capitalists
Ans - c
.............................................
t.c
Rate of subsidy available under PMEGP is ...... (i) General-category borrowers: 15% of project cost in
urban areas and 25% in rural areas, (ii) Special category borrowers: 25% of project cost in urban areas
es
and 35% in rural areas., (iii) 15% in rural areas and 25% in urban areas for general category borrowers
kt
oc
m
Ans - a
.............................................
iib
Which of the following is direct finance in Micro and Small Enterprises under priority sector?
ca
a. Credit to small road and water transport operators, Small business, professional and self-employed
persons and other service enterprises which satisfy the definition of micro and small (service)
enterprises in respect of investment in equipment i.e., not exceeding Rs 10 lac and Rs 2 crore
iib
respectively
b. Credit to persons involved in assisting the decentralized sector in the supply of inputs to and
marketing of outputs of artisans, village and cottage industries
.ja
c. Advances to Co-operatives of producers in the decentralized sector viz. artisans, village and cottage
industries
w
d. Loans granted by banks to NBFCs for on-lending to micro and small enterprises (manufacturing as well
as service)
w
Ans - a
w
.............................................
Under PMEGP scheme, rural area means place notified as rural area in revenue records and with
population ......
a. up to 10,000
b. less than 10,000
…………………………………………………………………………………………………………………………………………………………………
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c. up to 50,000
d. up to 20,000
Ans - d
.............................................
om
Which of the following is true in regard to achievement of targets by commercial banks in financing
Micro & Small Enterprises under priority sector lending? (i) 40% of total advances to Micro & Small
Enterprises sector should go to Micro (manufacturing) enterprises having investment in plant &
machineries upto Rs 5 lac and Micro (Service) enterprises having investment in equipments upto Rs 2
t.c
lac, (ii) 20% of total advances to Micro & Small Enterprises sector should go to Micro (manufacturing)
enterprises with investment in plant & machineries above Rs 5 lac and upto Rs 25 lac and Micro (Service)
enterprises with investment in equipments above Rs 2 lac and upto Rs 10 lac, (iii) The increase in share
es
of micro enterprises in MSE lending to 60 percent should be achieved in stages viz, 50% in the year
2010-11, 55% in the year 2011-12 and 60% in the year 2012-13
kt
oc
m
Ans - d
.............................................
iib
What is the margin money to be contributed by the beneficiary in financing project under Urban Self
ca
Employment Programme (USEP) of SJSRY?
a. 10% of the project cost

iib
b. 7.55% of the project cost

c. 15% of the project cost
d. 5% of the project cost
.ja
Ans - d
w
.............................................
w
An overdraft means ......

w
a. Allowing advance against the security of merchandise

b. Allowing the party to overdraw his account
c. Credit facility to a party for his short term requirement
d. All
Ans - b
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Bank loans up to per unit to Micro and Small Enterprises and to Medium Enterprises under services
sector are classified under priority sector
a. Rs 5 and 10 crore
b. Rs 10 and 15 crore
c. Rs 10 and 5 crore
om
d. Rs 15 and 10 crore
Ans - a
.............................................
t.c
In production sector, a small enterprise is an enterprise where the investment in plant and machinery is
more than Rs. 25 lakh but does not exceed ......
es
a. Rs 2 crore
b. Rs 3 crore
kt
c. Rs 5 crore
d. Rs 10 crore
oc
Ans - c
m
.............................................
Under the proposed MSMED Amendment Bill, 2014, the revised investment limit in plant and machinery
iib
for micro (manufacturing) enterprises is at Rs ......

ca
a. 25 lakhs
b. 50 lakhs
c. 75 lakhs
iib
d. 100 lakhs
Ans - b
.ja
.............................................
w
What is the Investment limit for a SSI unit in Plant & Machinery (original cost excluding land and building
etc) to be categorized as Priority sector advance under SME segment?
w
a. upto Rs. 1 crore

w
b. upto Rs. 2 crore

c. upto Rs. 5 crore
d. upto Rs. 10 crore
Ans - c
.............................................
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…………………………………………………………………………………………………………………………………………………………………
Under the Debt Restructuring Mechanism for MSMEs, the following entities will be considered. (i) All
non-corporate MSMEs irrespective of the level of dues to banks, (ii) All corporate MSMEs, which are
enjoying banking facilities from a single bank, irrespective of the level of dues to the bank, (iii) All
corporate MSMEs, which have funded and non-funded outstanding up to Rs.10 crore under
multiple/consortium banking arrangement
om
t.c
Ans - d
.............................................
es
The Indian banks who are not able to fulfill the target of 18% for agricultural sectors, are to ......
kt
a. deposit the short fall to the Reserve bank of India
b. deposit the short fall amount with NABARD under RIDF
oc
c. deposit the short fall with SIDBI under National equity fund
d. deposit with Government of India
m
Ans - b
.............................................
iib
The weaker sections under priority sector shall include ...... (i) Small and marginal farmers with land
ca
holding of 5 acres and less and landless labourers, tenant farmers and share croppers, (ii) Artisans,
village and cottage industries where individual credit limits do not exceed Rs 50,000/-, (iii) Beneficiaries
of SGSY, DRI, SJSRY, SRMS
iib

.ja

w
Ans - d
w
.............................................
w
Target for achieving export credit under Priority sector by foreign banks is ......
whichever is higher
whichever is higher
…………………………………………………………………………………………………………………………………………………………………
Facebook Groups -
…………………………………………………………………………………………………………………………………………………………………
whichever is higher
d. No target
Ans - b
.............................................
om
Under PMEGP, the borrower is required to contribute% of project cost as margin money ......
a. 5% for special category and 10% for general category
t.c
b. 10% for special category and 5% for general category
c. 5% for special category as well as general category
d. 10% for special category as well as general category (e) none of the above
es
Ans - a
.............................................
kt
Which of the two schemes have been merged to formulate Prime Minister’s Employment Generation
Programme (PMEGP)?
oc
m
a. PMRY & GKY
b. GKY & REGP
c. PMRY & REGP
iib
d. PMRY & TRYSEM

ca
Ans - c
.............................................
iib
What is the maximum project cost amount in case of PMEGP?
a. Max. Rs 10 lac for business/service sector and Max. Rs 20 lac for manufacturing sector
.ja
b. Max. Rs 10 lac for business/service sector and Max. Rs 25 lac for manufacturing sector
c. Max. Rs 15 lac for business/service sector and Max. Rs 25 lac for manufacturing sector
w
d. Max. Rs 5 lac for business/service sector and Max. Rs 20 lac for manufacturing sector
w
Ans - b
.............................................
w
Maximum Project cost in the case of single borrower for business & service category under PMEGP is
......
a. Rs. 10 lakhs
b. Rs. 25 lakh
c. Rs. 5 lakhs
…………………………………………………………………………………………………………………………………………………………………
Facebook Groups -
…………………………………………………………………………………………………………………………………………………………………
d. Rs. 2 lakh
Ans - a
.............................................
Which of the following belongs to negative list of activities under PMEGP? (i) Any industry/business
om
connected with cultivation of crops/plantations like Tea, Coffee, Rubber etc, (ii) Manufacturing of
polythene carry bags of less than 20 microns thickness and manufacture of carry bags or containers
made of recycled plastic for storing, carrying, dispensing or packaging of food stuff and any other item
which causes environmental problems, (iii) Any industry/business connected with meat (slaughtered),
t.c
i.e., processing, canning and /or serving items made of it as food
es
kt
Ans - d
.............................................
oc
m
What is the target for financing by each rural & semi-urban branch during the current financial year
(2010-11) under JLG financing scheme?
iib
a. Minimum 10 JLGs
b. Minimum 15 JLGs
ca
c. Minimum 20 JLGs
d. Minimum 25 JLGs
iib
Ans - a
.............................................
.ja
Of the following, which one is not considered a key component of a business plan?
w
a. Sources of funding
b. Market trend analysis
w
c. Methods for dissolution of the organization

d. Description of products or services
w
Ans - c
.............................................
What do you mean by Priority sector?
a. Priority sector means a group of activities which are to be financed on the priority
…………………………………………………………………………………………………………………………………………………………………
Facebook Groups -
…………………………………………………………………………………………………………………………………………………………………
b. A group of borrowers, from whom, recovery to be made on priority basis

c. A group of peoples, whose accounts to be opened on priority
d. All
Ans - a
.............................................
om
Allianz if loss of one limb or one eye takes place?
t.c
a. 35,000
b. 25,000
c. 45,000
es
d. 42,500
Ans - b
kt
.............................................
oc
Branch Manager can assess the value of agricultural land up to Rs. ...... lac under UCO Kisan Samridhi
Yojna (UKSY) – Revised?
m
a. 20
b. 15
iib
c. 10
d. 25
ca
Ans - c
.............................................
iib
In service sector, a small enterprise is an enterprise where the investment in equipment is more than
Rs.10 lakh but does not exceed _______
.ja
a. Rs 2 crore
w
b. Rs 3 crore
c. Rs 5 crore
w
d. Rs 10 crore
w
Ans - a
.............................................
Which of the following is true in respect of Group loans under SGSY Scheme? (i) The group can
undertake multiple activities under the group lending, (ii) The group is entitled to subsidy of 50 percent
of the project cost subject to per capita subsidy of Rs 10,000/- or Rs 1.25lac whichever is less, (iii) The
…………………………………………………………………………………………………………………………………………………………………
Facebook Groups -
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loan is sanctioned in the name of the group and the group stands as guarantor to the bank for prompt
repayment of loan

om
Ans - d
.............................................
t.c
What is the subsidy component in SGSY in case of Group Swarozgaries both in terms of the percentage
of the project cost and maximum amount?
es
a. 25%, Rs0.75lac
b. 30%, Rs1.50lac
kt
c. 40%, Rs1.00lac
d. 50%, Rs1.25lac
oc
Ans - d
m
.............................................
The concept of priority sector was formalized in 1972 by ......

iib
a. Study group constituted in May 1971

ca
b. Study group constituted in July 1972

c. Talwar Committee
d. Padamanabham Committee
iib
Ans - a
.............................................
.ja
How the premium is shared between the bank and the KCC holder for personal accident insurance of
w
KCC holders with Bajaj Allianz General Insurance Company?

w
a. Rs 5, Rs 4
b. Rs 6, Rs 3
w
c. Rs 4, Rs 5
d. Rs 7, Rs 2
Ans - b
.............................................
…………………………………………………………………………………………………………………………………………………………………
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Which one of the following would not be considered a disadvantage of a corporation?
a. Limited continuality of life of enterprise

b. Extensive government regulations of activities
c. High incorporation fees
d. Corporate capital, profits, dividends, and salaries are double taxed
om
Ans - a
.............................................
t.c
A performance and credit rating scheme has been launched by the MSME Ministry to assess
creditworthiness and capabilities of industries in the sector. What is it called?
es
a. Performance and Credit Rating Scheme
b. Zero Defect Zero Effect Certification
c. Performance and Economy Rating Scheme
kt
Ans - a
oc
.............................................
m
What are the criteria for selection of JLG members? (i) Members should be of similar socio-economic
status and background carrying out farming or non-farming activities and who agree to function as a
iib
joint liability group, (ii) Members should be residing in the same village/area and should know and trust
each other well enough to take up joint liability for group/individual loans, (iii) Group members should
ca
not be a defaulter to any other formal financial institution

iib

.ja
Ans - d
w
.............................................
w
What is the quantum of NABARD refinance to banks for JLG financing?

w
a. 75%
b. 80%
c. 100%
d. 90%
Ans - c
.............................................
…………………………………………………………………………………………………………………………………………………………………
Facebook Groups -
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Target for achieving export credit under Priority sector by domestic commercial banks is ......
whichever is higher
whichever is higher
om
whichever is higher
d. No target
t.c
Ans - d
.............................................
es
MUDRA stands for ......
a. Metropolitan and Urban Development Regulatory Authority
kt
b. A scheme under Ministry of AYUSH
c. Micro Units Development and Refinance Agency
oc
m
Ans - c
.............................................
iib
BDS Supervisor is known as ......

ca
a. Facilitator
b. Team Leader
c. Correspondent
iib
d. Group leader
Ans - b
.ja
.............................................
w
The Prime Minister's Employment Generation Programme (PMEGP) ...... (i) has been designed to
generate employment opportunities in Rural & Urban areas, (ii) relates to the setting up of new self-
w
employment ventures for industries, services and business, (iii) covers whole the country including J&K
w

Ans - d
.............................................
…………………………………………………………………………………………………………………………………………………………………
Facebook Groups -
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Micro Credit under priority sector is ......
a. Loans of very small amount not exceeding Rs 60,000 per borrower provided by banks either directly
or indirectly through SHG/JLG mechanism or to NBFC/MFI for on-lending upto Rs 60,000 per borrower
b. Loans of very small amount not exceeding Rs 50,000 per borrower provided by banks either directly
om
c. Loans of very small amount not exceeding Rs 75,000 per borrower provided by banks either directly or
indirectly through SHG/JLG mechanism or to NBFC/MFI for on-lending upto Rs 75,000 per borrower
d. Loans of very small amount not exceeding Rs 100,000 per borrower provided by banks either directly
t.c
Ans - b
.............................................
es
Under PMEGP, ...... % of the margin money (subsidy) should go to projects in rural areas
kt
a. 25
b. 40
c. 30
oc
d. 50
m
Ans - d
.............................................
iib
Under the Revised RBI Guidelines on Priority Sector Lending, loans to food and agro processing units are
ca
classified under ......
a. Agriculture
iib
b. MSME
c. Others
d. None
.ja
Ans - a
w
.............................................
w
What is the subsidy component in SGSY in case of SC/ST Swarozgaries both in terms of the percentage of
the project cost and maximum amount?
w
a. 25%, Rs 7,500
b. 30%, Rs 7,500
c. 50%, Rs 10,000
d. 25%, Rs 10,000
Ans - c
…………………………………………………………………………………………………………………………………………………………………
Facebook Groups -
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As per RBI guidelines, a MSME unit is treated as sick when ...... (i) any of the borrowal account of the
enterprise remains NPA for three months or more, (ii) There is erosion in the net worth due to
accumulated losses to the extent of 50% of its net worth, (iii) Any of the borrowal account of the
enterprise remains NPA for 6 months or more
om
t.c
Ans - a
.............................................
es
A(n) ...... is defined as a form of business that is an association of two or more people acting as co-
owners of a business.
kt
a. proprietorship
b. partnership
c. INC
oc
d. corporation
m
Ans - b
.............................................
iib
ca
Allianz if loss of one limb & one eye takes place?
a. Rs 72,500
iib
b. Rs 82,500
c. Rs 62,500
d. Rs 52,500
.ja
Ans - c
w
.............................................
w
Which one of the following would not be considered an advantage to a partnership formation?
w
a. Potential for double taxation

b. Less governmental control
c. Ease of formation
d. Direct share of profits
Ans - a
.............................................
…………………………………………………………………………………………………………………………………………………………………
Facebook Groups -
…………………………………………………………………………………………………………………………………………………………………
Which of the following is not an investment line of credit under UCO Kisan Samridhi Yojna (UKSY) –
Revised?
a. Short term credit for consumption/domestic needs of the farmers

b. Extending personal loans including loans for purchase of consumer durables/vehicles inclusive of
housing
om
c. Extending loan for repayment of high cost non-institutional loans
d. Extending loans for purchase of machinery/equipments etc
Ans - a
t.c
.............................................
The Code of Bank's Commitment to MSE's which set minimum standards of banking and practices for
es
banks to follow when they are dealing with MSEs has been formulated by ......
a. BCSBI
kt
b. SIDBI
c. RBI
d. GOI
oc
m
Ans - a
.............................................
iib
Which of the following is/arer true in regard to priority sector target to be achieved by domestic
commercial banks? (i) Total priority sector advances should be 40% of Adjusted Net Bank Credit (ANBC)
ca
or credit equivalent amount of Off-balance sheet exposure, whichever is higher, (ii) Total agricultural
advances should be 18% of Adjusted Net Bank Credit (ANBC) or credit equivalent amount of Off-balance
sheet exposure, whichever is higher, (iii) Advances to Micro & Small Enterprises Sector will be reckoned
iib
in computing performance under the overall priority sector target of 40 percent of ANBC or credit
equivalent amount of Off-balance sheet exposure, whichever is higher
.ja

w

w
Ans - d
w
.............................................
Which agency provides subsidy for credit rating of SMEs?
a. SIDBI
b. DIC
c. NSIC
…………………………………………………………………………………………………………………………………………………………………
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d. SMERA
Ans - c
.............................................
Ms. X is one of the newest and most successful entrepreneurs in the technology industry. She handles
om
numerous dealings with other companies for the exchange of goods and services. Her primary goal is to
ensure that all parties involved receive favorable and acceptable terms. Melissa is most probably
excellent at the entrepreneurial skill of ......
t.c
a. negotiating
b. networking
c. leadership
es
d. analysis
Ans - a
kt
.............................................
oc
Which of the following is true in respect of penalties for non-achievement of priority sector lending
target/sub - targets by domestic scheduled commercial banks? (i) Domestic scheduled commercial banks
m
having short fall in meeting priority sector target in respect of total priority sector lending, agriculture
lending and weaker sections lending shall be allocated amounts for contribution to the Rural
Infrastructure Development Fund (RIDF) established with NABARD or funds with other Financial
iib
Institutions, as specified by the RBI, (ii) For allocation in RIDF or any other fund in the year 2010-11, the
achievement level of priority sector lending as on the last reporting Friday of March 2010 will be taken
ca
into account
a. Only (i)
iib
b. Only (ii)
.ja
Ans - d
w
.............................................
w
What is the subsidy component in SGSY in case of Swarozgaries other than SC/ST both in terms of the
percentage of the project cost and maximum amount?
w
a. 25%, Rs 7,500
b. 30%, Rs 7,500
c. 30%, Rs 10,000
d. 25%, Rs 10,000
Ans - b
…………………………………………………………………………………………………………………………………………………………………
Facebook Groups -
…………………………………………………………………………………………………………………………………………………………………
Common reasons for entrepreneurial failure include all but which one of the following?
a. Poor implementation
b. Lack of capital
c. Adequate financial support
d. Faulty product design
om
Ans - c
.............................................
t.c
An individual needs the following to perform a task ...... (i) Knowledge, (ii) Skill, (iii) Attitude
es
kt
Ans - d
.............................................
oc
m
To be eligible for loan under PMEGP, minimum qualification required is class pass in case project cost is
above Rs 10 lakh in the manufacturing sector and above Rs. 5 lakh in the business or service sector ......
iib
a. 8 th
b. 9th
ca
c. 5th
d. 7th
iib
Ans - a
.............................................
.ja
To be eligible under PMEGP, the applicant's age should be ......

w
a. not-more than 40 years

b. not less than 18 years
w
c. between 25 to 40 years
d. abovel 8 years
w
Ans - d
.............................................
Which sector TUF applies to?
a. Textile
…………………………………………………………………………………………………………………………………………………………………
Facebook Groups -
…………………………………………………………………………………………………………………………………………………………………
b. Shoe manufacture
c. Food processing
d. Glass manufacture
Ans - a
.............................................
om
Which one of the following institution has initiated Project uptech scheme?
a. SIDBI
t.c
b. SBI
c. IDBI
d. TIFAC
es
Ans - b
.............................................
kt
RBI has relaxed rules for resolution of stressed ______ loans on 17th March 2016.
oc
a. SME
m
b. SMB
c. MSME
iib
Ans - c
ca
.............................................
The ideas for new businesses that are obtained by entrepreneurs are derived from many sources. These
iib
various sources include all but ......
a. replication of an existing business

.ja
b. trade journals
c. trade shows
w
d. family members
w
Ans - a
.............................................
w
In production sector, amedium enterprise is an enterprise where the investment in plant and machinery
is more than Rs.5 crore but does not exceed ......
a. Rs 8 crore
b. Rs 10 crore
c. Rs 15 crore
…………………………………………………………………………………………………………………………………………………………………
Facebook Groups -
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d. Rs 20 crore
Ans - b
.............................................
The steps involved in an entrepreneurial endeavor include all but which one of the following?
om
a. Business plan formulation
b. Obtaining financing
c. Selecting the type of legal structure
t.c
d. Hiring a partner
Ans - d
es
.............................................
Provisioning requirements in respect of Standard Assets under Direct Advances to agriculture and SME
kt
Sectors ......
a. A general provision of 0.1% of total outstanding

oc
b. A general provision of 0.25% of total outstanding
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c. A general provision of 0.4% of total outstanding
d. No provision is required to be made
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Ans - b
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Which of the following are general features of Joint Liability Group (JLG)? (i) A Joint Liability Group (JLG)
is an informal group comprising of 4-10 individuals coming together for the purpose of availing bank
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loan on individual basis or through group mechanism against mutual guarantee, (ii) Members of a JLG
would engage in a similar type of economic activity in the Agriculture and Allied Sector/Non farm sector,
(iii) Members of a JLG would offer a joint undertaking to the bank that enables them to avail loans
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Ans - d
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Which of the following is true in regard to classification of Housing loan under priority sector? (i) Loans
upto Rs 20 lac to individuals for purchase/construction of dwelling unit per family, (ii) Loans upto Rs 20
lac to individuals for purchase/construction of dwelling unit per family including loans granted by banks
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to their own employees, Loans given for repairs to the damaged dwelling units of families upto Rs 1 lac
in rural and semi-urban areas and up to Rs 2 lac in urban and metropolitan areas

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Ans - b
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Up to what amount of loan under priority sector, processing charge, service charge, inspection Charge &
penal interest are not to be charged?
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a. Rs 50,000
b. Rs 40,000
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c. Rs 25,000
d. Rs 30,000
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Ans - c
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To facilitate promotion of JLG, banks are eligible for grant assistance from NABARD. Grant assistance will
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be extended to banks for formation, nurturing and financing of JLGs over a period of ...... years @Rs ......
per JLG.
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a. 2, 1000
b. 3, 2000
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c. 2, 2000
d. 1, 1000
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Ans - b
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All but which of the following is considered to be a myth associated with entrepreneurship?
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a. Successful entrepreneurs are born not made

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b. First ventures are always successful

c. All entrepreneurs must willingly invest significant sums of money
d. Successful entrepreneurs must have a break-through invention
Ans - b
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The entrepreneur who is committed to the entrepreneurial effort because it makes good business sense
is classed as a/an ......
a. inventor
b. opportunist
c. hacker
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d. craftsman
Ans - b
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t.c
The rate of subsidy under PMEGP scheme ranges from ...... % to ...... %
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a. 10 & 15
b. 15 & 20
c. 15 & 35
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d. 20 & 40
Ans - c
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For small business owners, one of the most important objectives is ......
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a. market presence
b. growth
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c. profitability
d. adaptability
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Ans - c
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The small finance bank shall primarily undertake finance to the following entities ...... (i) unserved and
underserved sections, (ii) small business units, (iii) unorganized sector
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Ans - d
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Upto what amount of group loan under SGSY, no collateral security is insisted upon?
a. Rs 5 lac
b. Rs 4 lac
c. Rs 10 lac
d. Rs 3 lac
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Ans - c
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t.c
Banks are mandated not to accept collateral security in the case of loans upto Rs. ...... extended to units
in the MSE sector
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a. 25 lakh
b. 10 lakh
c. 5 lakh
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d. 1 lakh
Ans - b
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The quantum of loan limit under the revised General Credit Card (GCc. Scheme is ......
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a. 1 lakh
b. 2 lakh
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c. 5 lakh
d. no ceiling on the loan amount
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Ans - d
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The concept of teaching adults is called

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a. Anagogy
b. Andragogy
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c. Pedagogy
d. Mystagogy
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Ans - b
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Which of the following is not considered a common characteristic of an entrepreneur?
a. Internal locus of control

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b. High need for achievement

c. Self-confidence
d. External locus of control
Ans - d
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A/An ...... is best described by stating it is any business that is independently owned and operated and is
not dominate in its market.
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a. strategic alliance
b. corporation
c. entrepreneurship
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d. small business
Ans - d
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What is the purpose of credit under JLG financing scheme by banks? (i) Crop production, (ii) Meeting
consumption & marketing needs, (iii) Other productive purposes including non-farm activities.
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Ans - d
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How much service charge is to be levied under JLG financing scheme by banks?
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a. Nil
b. 2%
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c. 3%
d. 5%
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Ans - a
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Mr. X believes that what takes place within his new company is mostly the result of fate or factors that
are outside of his control. It could be stated that Bobby possesses a/an ......
a. innovative spirit
b. intrapreneurship
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c. internal locus of control

d. external locus of control
Ans - d
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Advances to MSMEs up to Rs crore may be done on the basis of credit scoring model ......
a. 1
b. 2
t.c
c. 3
d. 4
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Ans - b
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Which of the following is true in regard to classification of Education loan under priority sector?
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a. Education loan to an individual of Rs 5 lac for study in India or Rs 10 lac for study abroad
b. Education loan to an individual of Rs 7.5 lac for study in India or Rs 15 lac for study abroad
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c. Education loan to an individual of Rs 10 lac for study in India or Rs 20 lac for study abroad
d. Education loan to an individual of Rs 10 lac for study in India or Rs 25 lac for study abroad
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Ans - c
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Up to what amount of loan under priority sector, banks may waive insurance of assets? (i) All categories
of priority sector advances upto and inclusive of Rs 10,000, (ii) Advances to Micro & Small Enterprises
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upto and inclusive of Rs 25,000 by way of composite loans to artisans, village and cottage industries, all
term loans and working capital loans where these are against non-hazardous goods, (iii) Where,
however, insurance of vehicle or machinery or other equipment/assets is compulsory under the
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provisions of any law or where such a requirement is stipulated in the refinance scheme of any
refinancing agency or as part of a government sponsored programmes such as SGSY, insurance should
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not be waived even if the relative credit facility does not exceed Rs 10,000 or Rs 25,000 as the case may
be
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Ans - d
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Upto what amount of individual loan under SGSY, no collateral security is insisted upon?
a. Rs 50,000
b. Rs 1,00,000
c. Rs 75,000
d. Rs 60,000
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Ans - b
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t.c
The Chairman of Committee on Financial Architecture for Micro, Small and Medium Enterprises (MSME)
sector set up by Government of India is ......
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a. M V Nair
b. K C Chakrabarty
c. UshaThorat
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d. K V Kamath
Ans - d
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In service sector, a micro enterprise is an enterprise where the investment in equipment does not
exceed ......
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a. Rs 10 lakh
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b. Rs 15 lakh
c. Rs 20 lakh
d. Rs 25 lakh
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Ans - a
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ALL THE VERY BEST FOR YOUR EXAMS
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SAMPLE QUESTIONS FOR oc
CERTIFICATE COURSE ON
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MSME
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Though we had taken enough care to go through the questions, we shall not be responsible for
any loss or damage, resulting from any action taken on the basis of the contents. We advise
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everyone to update yourself with the latest information through RBI website and other
authenticated sources. In case you find any incorrect/doubtful information, kindly update us
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also (along with the source link/reference for the correct information) as lot of questions were
shared by many people.
January 2019 K Murugan, MCA MBA CAIIB

…………………………………………………………………………………………………………………………………………………………………

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January 2019 K Murugan, MCA MBA CAIIB

MSME – GENERAL INFORMATION

Examination will be conducted in English only.

(iii) There will NOT be negative marking for wrong answers.

The duration of the examination will be of 2 hours.

PERIODICITY AND EXAMINATION CENTRES:

STUDY MATERIAL / COURSEWARE

Cut-off Date of Guidelines / Important Developments for Examinations

of the current developments. However, there could be changes in the developments /

In order to address these issues effectively, it has been decided that:

Certificate Examination in MSME

Organisational Structures – Rules &Regulations - Gender & Entrepreneurial Development.

II. MSMEs: Policy, Regulatory and Legal Framework

III. Institutional Framework & MSME Financing

IV. Financing Options & Modes

VII. MSME: Rehabilitation

a. Only (i) and (ii)

What is the MSME Public Procurement Portal called?

MSME is defined under which act?

a. MSME Act, 2004

d. MSME Act, 2001

d. Both (i) and (ii)

a. Only (i) and (ii)

Community Development Societies (CDSs) belongs to which component of SJSRY?

a. Urban Women Self Help Programme (UWSP)

b. Urban Self Employment Programme (USEP)

Market failure refers to ......

risk weight for capital adequacy purpose

a. Only (i) and (ii)

Governing Council of Skill India Mission is Chaired by

How lending to JLG will be classified?

a. Indirect Agriculture Advances

the concerned crops

a. Only (i) and (ii)

d. (i), (ii) and (iii)

SGSY is operative from ......

c. Either (i) or (ii)

a. Priority sector advances

a. National Insurance Corporation Ltd.

What is the age limit for beneficiaries to apply under PMEGP?

Which one of the following is not true in regard to SGSY?

b. When average utilization of the sanctioned limit is less than 75%

a. Only (i) and (ii)

b. Only (i) and (iii)

a. From Rs.5.00 lakhs to Rs.1.00 Crores

a. Established market for the product

a. Only (i) and (ii)

b. Only (i) and (iii)

a. VIII standard, Secondary school final

10 lac in manufacturing sector and Rs 5 lac in service sector?

a. 1.5% of total advances outstanding as at the end of the previous year

a. Rs. 1 lakh in plain areas

b. Rs.1.50 lakh in hilly areas

What should be the family income for beneficiaries under PMEGP?

a. Rs36000 from all sources

a. Only (i) and (ii)

a. Less than Rs.10 lakh

a. Zero Defect Zero Effect

a. Only (i) and (ii)

a. Only (i) and (ii)

a. Only (i) and (ii)