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 and machinery between is crore and 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? |ForumIAS

Q. 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 and machinery between is crore and 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?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B

Notes:

Exp) Option b is the correct answer.

Statement 1 is incorrect: As per the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the Medium Enterprises are those for which the investments in Plant and Machinery is not more than Rs. 50 crore of and turnover not more than Rs. 250 crore.

Statement 2 is correct: All bank loans to MSMEs conforming to the definition of MSME as per Government of India qualify for classification under priority sector lending. Source: https://msme.gov.in/know-about-msme

https://www.rbi.org.in/commonman/english/Scripts/FAQs.aspx?Id=966 https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1909926#:~:text=Priority%20Sector%20Lending%20Guidelines%3A%20In,classification%20under%20priority%20sector%20lending.

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS