Master Direction - Lending to Micro, Small & Medium Enterprises (MSME) Sector

Question 1

Classification of Micro Enterprise?

Answer 1

Investment in plant and machinery or equipment does not exceed ₹1 crore and turnover does not exceed ₹5 crore.

Question 2

Classification of Small Enterprise?

Answer 2

Investment in plant and machinery or equipment does not exceed ₹10 crore and turnover does not exceed ₹50 crore.

Question 3

Classification of Medium Enterprise?

Answer 3

Investment in plant and machinery or equipment does not exceed ₹50 crore and turnover does not exceed ₹250 crore

Question 4

MSME Enterprises are required to register online on the ………………… and obtain ……………………………

Answer 4

Udyam Registration portal, Udyam Registration Certificate

Question 5

…………………………. shall be excluded while calculating the turnover of any enterprise whether micro, small or medium, for the purposes of classification.

Answer 5

Exports of goods or services or both,

Question 6

Apart from PSL, The other targets recommended by the Prime Minister’s Task Force on MSMEs, under which banks are advised to achieve

Answer 6

20% Y-o-Y growth in credit to MSE sector, 10% annual growth in the number of Micro enterprise Accounts, 60% of (total lending to MSE sector as of the corresponding quarter of the previous year ) shall be lent to Micro Enterprises.

Question 7

Banks are mandated not to accept collateral security in the case of loans up to …………. extended to units in the MSE sector.

Answer 7

₹10 lakh

Question 8

Banks are also advised to extend collateral-free loans up to ₹10 lakh to all units financed under the ……………………

Answer 8

Prime Minister Employment Generation Programme (PMEGP) administered by KVIC.

Question 9

Banks may, on the basis of good track record and financial position of the MSE units, increase the limit to dispense with the collateral requirement for loans up to ……………

Answer 9

₹25 lakh (with the approval of the appropriate authority)

Question 10

A composite loan limit of ………….. can be sanctioned by banks to enable the MSE entrepreneurs to avail of their working capital and term loan requirement through Single Window.

Answer 10

₹1 crore

Question 11

Banks have been permitted to categorise their general banking branches having …………………….. of their advances to MSME sector as specialized MSME branches in order to encourage them to open more specialised MSME branches for providing better service to this sector as a whole.

Answer 11

60% or more

Question 12

As part of the announcement made by the Union Finance Minister, Empowered Committees on MSMEs are constituted at the Regional Offices of Reserve Bank of India, under the Chairmanship of the ………………….

Answer 12

Regional Directors

Question 13

In case the buyer fails to make payment of the amount to the MSME supplier, he shall be liable to pay compound interest with monthly rests to the supplier at ……………………… of the Bank Rate notified by Reserve Bank.

Answer 13

three times