Attempt this previous-year question. The correct option stays hidden until you choose.
Consider the following statements with reference to India:
1. According to the 'Micro Small and Medium enterprises Development (MSMED) Act, 2006, the 'medium enterprises' are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore.
2. All bank loans to the Micro, Small and Medium Enterprises qualify under the Priority sector.
Which of the statements given above is/are correct?
Pick an option to check yourself.
• Correct Answer: B
• Statement 1 is incorrect: under the MSMED Act, 2006, medium enterprises were defined as Rs. 5-10 crore (manufacturing), not Rs. 15-25 crore.
• Statement 2 is correct: all bank loans to MSMEs qualify under RBI Priority Sector Lending (PSL) guidelines.
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