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Privileges and other promotional measures for msmes - class-XI

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What is/are the fund(s) for start-ups that SIDBI have been managing?

  1. Fund of Funds for Start-ups

  2. ASPIRE Fund

  3. India Aspiration Fund

  4. All of the above


Correct Option: D

Which of the following committees recommended the establishment of NABARD?

  1. CRAFICARD

  2. Royal Commission

  3. Jha Committee

  4. Tandon Committee


Correct Option: A
Explanation:

The Committee to Review Arrangements for Institutional Credit for Agriculture and Rural  Development (CRAFICARD) under the chairmanship of  B. Sivaraman, also known as Sivaraman committee recommended the establishment of NABARD.

NABARD provides refinance assistance to ___________.

  1. state land development banks

  2. scheduled commercial banks

  3. regional rural banks and state co-operative banks

  4. all of the above


Correct Option: D
Explanation:

National Bank for Agriculture and Development  is the apex bank which is concerned with the planning, policy and operations for development of rural areas of India.  Above mentioned banks help the rural communities to undertake agricultural and farming activities by providing loans, hence NABARD provides refinance assistance to such banks  for better economical development.

The SIDBI is a wholly owned subsidiary of the _________.

  1. RBI

  2. IBRD

  3. IDBI

  4. IRBI


Correct Option: C
Explanation:

The SIDBI (Small Industries Development Bank of India) is a wholly owned subsidiary of IDBI (Industrial Development Bank of India), established under the special Act of the Parliament 1988 which became operative from April 2, 1990. SIDBI was made responsible for administering Small Industries Development Fund and National Equity Fund that were administered by IDBI before.  SIDBI is the Primary Financial Institution for promoting, developing and financing MSME (Micro, Small and Medium Enterprise) sector

NABARD came into existence in ____.

  1. 1975

  2. 1980

  3. 1982

  4. 1985


Correct Option: C
Explanation:

NABARD was established to implement the National Bank for Agriculture and Rural Development Act, 1981. It is an apex development financial institution of India. Its headquarter is located in Mumbai, with branches all over the country.

NABARD was established by the Government of ________.

  1. U.S.A.

  2. Sri Lanka

  3. Pakistan

  4. India


Correct Option: D
Explanation:

NABARD is the apex development and financial institution of India. It was established by government of India for development of agriculture and rural development in rural parts of India.

The functions of NABARD have been divided into _______.

  1. 2 categories

  2. 3 categories

  3. 4 categories

  4. 5 categories


Correct Option: B
Explanation:

The functions of NABARD has been divides into 3 categories namely- Distribution, development and regulatory. It is entrusted with matters of concerning policy, planning and operations in the field of credit for agriculture and other economic activities for rural development. 

Which of the following is a developmental functions of NABARD?

  1. It inspects the working of RRBs and Cooperative banks of all types

  2. It provides long-term credit to State Land Development Banks

  3. It provides short term credit to state cooperative banks, RRB's and other financial institutions

  4. It acts as an agent of Government and RBI for monitoring work in agricultural related areas


Correct Option: D
Explanation:

NABARD has taken over the refinancing from the RBI with respect of state cooperative banks and regional rural banks. It is an apex organisation with respect to all the rural developmental activities. Hence, it plays as an agent of government and RBI by refinancing and giving agricultural credit. 

Small Industries Development Bank of India is created by _______.

  1. RBI

  2. IDBI

  3. IFCI

  4. IBRD


Correct Option: B
Explanation:

SIDBI was established in 1990 to cater to the financial needs and growth and development of micro, small and medium scale enterprises. It is an important pillar of Indian economy as it contributes greatly to the growth of the same.

NABARD provides refinance for investment in the following activities.
I. Minor irrigation
II. Land development
III. Soil Conservation
IV. Dairy development
Which of the following are correct?

  1. I, II and III are correct

  2. II, III and IV are correct

  3. I, II and IV are correct

  4. All are correct


Correct Option: D
Explanation:

All the mentioned activities contribute to the economical and agricultural development of rural areas. This helps the rural community to earn their livelihood leading to greater standard of living. NABARD provides refinance for the investment in such activities. 

Khusro Committee is associated with _______.

  1. RRBs

  2. RBI

  3. NABARD

  4. SBI


Correct Option: C
Explanation:

Khusro Committee is also known as Agricultural Review Committee which was established in 1989. The function of Khusro committee under the chairmanship of Prof. A.M. Khusro was to examine the problems of agricultural and rural credits, measure the structural and operational deficiencies and recommend major systematic improvements.

The SIDBI has set up a technology bureau for SSI units in ________.

  1. Kolkatta

  2. New Delhi

  3. Mumbai

  4. Chennai


Correct Option: B
Explanation:

The SIDBI has set up a technology bureau for SSI units in New Delhi.

The Technology Bureau for Small Enterprises (TBSE) provides a platform where small enterprises can tap opportunities at the global level for acquisition of technology or establish business collaboration. Resulting from the joint initiative of the United Nations' Asian and Pacific Centre for Transfer of Technology (APCTT) and Small Industries Development Bank of India (SIDBI) it represents, under one roof, synergy of technology and finance.
TBSE also receives partial funding from the Office of DC(SSI), Government of India.

The principal financial institution for the promotion, financing and development of small scale industries is ________.

  1. SIDBI

  2. SFCs

  3. EXIM Bank

  4. IRBI


Correct Option: A
Explanation:

The SIDBI (Small Industries Development Bank of India) is a wholly owned subsidiary of IDBI (Industrial Development Bank of India), established under the special Act of the Parliament 1988 which became operative from April 2, 1990. SIDBI was made responsible for administering Small Industries Development Fund and National Equity Fund that were administered by IDBI before.  SIDBI is the Primary Financial Institution for promoting, developing and financing MSME (Micro, Small and Medium Enterprise) sector.

NABARD has taken over the entire functions of________.

  1. ARDC

  2. ACD of RBI

  3. RPCD of RBI

  4. All of the above


Correct Option: A
Explanation:
Reserve Bank of India (RBI) set up the Agricultural Refinance Corporation (ARC) in 1963 to work as a refinancing agency in providing medium term and long term agricultural credit to support investment credit needs for agricultural development. In 1975, ARC was renamed as Agriculture Refinance and Development Corporation (ARDC) to give focussed attention to credit offtake, development and promotion of the agricultural sector.
 Upon its formation in 1982, NABARD took over the functions of the erstwhile Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of RBI and ARDC.

SIDBI is set up in ____ as a wholly owned subsidiary of ______.

  1. 1985 - EXIM

  2. 1969 - RRBS

  3. 1975 - IFCI

  4. 1990 - IDBI


Correct Option: D
Explanation:

The SIDBI (Small Industries Development Bank of India) is a wholly owned subsidiary of IDBI (Industrial Development Bank of India), established under the special Act of the Parliament 1988 which became operative from April 2, 1990. 

The SIDBI was established in _________.

  1. April, 1980

  2. April, 1985

  3. April, 1990

  4. April, 1995


Correct Option: C
Explanation:

Small Industries Development Bank of India (SIDBI) set up on 2nd April 1990 under an Act of Indian Parliament, acts as the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector as well as for co-ordination of functions of institutions engaged in similar activities.

Which one among the following has not started Commercial Banking?

  1. SIDBI

  2. IDB

  3. ICICI

  4. UTI


Correct Option: A
Explanation:

It is a public financial institution which lends for longer periods.A bank is defined as an institution which accepts deposits for the purpose of lending and investment.  Further, Banks lend for shorter durations. SIDBI does not accept deposits and hence it is a financial institution not a commercial bank.

____ Indian Aspiration Fund was launched by ___ in August 2015 to boost the start-up funds ecosystem in the country.

  1. Rs. 5,000 Crore; IDBI

  2. Rs. 2,000 Crore; SIDBI

  3. Rs. 2,000 Crore; RBI

  4. Rs. 3,500 Crore; ICICI


Correct Option: B
Explanation:

In order to boost the startup ecosystem in the country, finance minister Arun Jaitley has announced the launch of India Aspiration Fund (IAF) with an initial corpus of Rs. 2,000 crore. IAF is managed by Small Industries Development Bank of India (SIDBI) for promotion, financing and development of micro, small and medium enterprises (MSME) sector.

Branch office kind of business form __________________.

  1. can undertake any acctivity

  2. can undertake activity which is specifically permitted.

  3. can work without being registered with Registrar of Companies.

  4. can not carry on research work.


Correct Option: B

Major activity(ies) of SIDBI is/are __________.

  1. Refinancing loans

  2. Extension of seed capital

  3. Development of industrial areas

  4. All of the above


Correct Option: D
Explanation:
Major Activities of SIDBI
  • SIDBI refinances loans extended by the primary lending institutions to small scale industrial units, and also provides resources support to them.
  • SIDBI discounts and rediscounts bills arising from sale of machinery to or manufactured by industrial units in the small scale sector.
  • To expand the channels for marketing the products of Small Scale Industries (SSI) sector in domestic and international markets.
  • It provides services like leasing, factoring etc. to industrial concerns in the small scale sector.
  • To promote employment oriented industries especially in semi-urban areas to create more employment opportunities and thereby checking migration of people to urban areas.
  • To initiate steps for technological up-gradation and modernisation of existing units.
  • SIDBI facilitates timely flow of credit for both term loans and working capital to SSI in collaboration with commercial banks.

SIDBI is a subsidiary of ____________.

  1. IDBI

  2. Union Bank

  3. RBI

  4. NABARD


Correct Option: A
Explanation:

The SIDBI (Small Industries Development Bank of India) is a wholly owned subsidiary of IDBI (Industrial Development Bank of India). It is established under the Special Act of the Parliament 1988 that became operative since April 2, 1990.

Responsibility of administering Small Industries Development Fund and National Equity Fund that were earlier administered by IDBI were transferred to SIDBI. It is the Primary Financial Institution for promoting, developing and financing MSME (Micro, Small and Medium Enterprise) sector.

SIDBI Start-Up Mitra is the digital initiative that facilitates the entrepreneurs to engage with incubators, investors, mentors etc.

  1. True

  2. False


Correct Option: A
Explanation:

True

SIDBI Startup Mitra
SIDBI Start-Up Mitra is a digital initiative that address gaps in the start-up ecosystem. The portal was launched by the Hon’ble President of India on March 17th, 2016. It acts as a virtual platform to bring together all stakeholders, start-up entrepreneurs, incubators, investors (Angel networks / Venture Capital Funds), industry bodies, mentors /advisors and banks to meet the financing and developmental needs of the early stage start-ups and enterprises

The portal also facilitates entrepreneurs to engage with incubators, investors, mentors and spreads awareness about the government schemes for start-ups in India by becoming the knowledge partner for State and Central Governments. The portal is supported by the Department of Science and Technology [DST], Govt. of India and currently boasts of more than 10,245 start-ups, 118 incubators and 90 investors as registered members on the platform

The Scheme launched for Technology up-gradation of Micro and Small Enterprises is ________.

  1. Credit Linked Capital Subsidy Scheme

  2. Deendayal Antyodaya Yojana

  3. Dairy Entrepreneurship Development Scheme

  4. None of the above


Correct Option: A
Explanation:
 The Ministry of Small Scale Industries (SSI) is operating a scheme for technology upgradation of Small Scale Industries (SSI) called the Credit Linked Capital Subsidy Scheme (CLCSS). The Scheme aims at facilitating technology upgradation by providing upfront capital subsidy to SSI units, including tiny, khadi, village and coir industrial units, on institutional finance (credit) availed of by them for modernisation of their production equipment (plant and machinery) and techniques. 

Headquarters of NABARD is located at _______.

  1. Kolkata

  2. Mumbai

  3. Delhi

  4. Chennai


Correct Option: B
Explanation:

National Bank for Agriculture and Rural Development (NABARD) is an apex development financial institution in India, headquartered at Mumbai with regional offices all over India.The Bank has been entrusted with "matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India".

Identify the fund set up by SIDBI with a vision to promote and accelerate equity and equity-linked investments in start-ups and MSMEs.

  1. India Aspiration Fund

  2. Aspire Fund

  3. SIDBI Start-Up Mitra

  4. None of the above


Correct Option: A
Explanation:
India Aspiration Fund
India Aspiration Fund set up SIDBI with the support of RBI pursuant to a budget announcement is an INR2000 crore fund introduced by SIDBI with a vision to promote and accelerate equity and equity linked investments in Start-ups and MSMEs. IAF contributes to the corpus of SEBI registered Alternative Investment Funds (AIFs), with sector agnostic investments specifically involving MSMEs as key strategic investment sectors.

Biofertilisers and biopesticides production Units can benefit from the _______ scheme. 

  1. Dairy Entrepreneurship Development Scheme

  2. Agricultural and Marketing Infrastructure, Grading and Standardization

  3. Capital Investment Subsidy Scheme for Commercial Production Units for organic/ biological Inputs

  4. Agriclinic and Agribusiness Centres Scheme


Correct Option: C
Explanation:
CAPITAL INVESTMENT SUBSIDY SCHEME FOR COMMERCIAL PRODUCTION UNITS FOR ORGANIC/ BIOLOGICAL INPUTS
The increasing and indiscriminate use of synthetic fertilizers and pesticides and deteriorating soil health and productivity is concerning people all over the world. Growing awareness for safe and healthy food has underlined the importance of organic farming, which is a holistic system based on the basic principle of minimizing the use of external inputs and avoiding the use of synthetic fertilizers and pesticides. 

NABARD acts as a coordinator in the operation of rural credit institutions.

  1. True

  2. False


Correct Option: A
Explanation:

True

NABARD was set up as an apex Development Bank with a mandate for facilitating
credit flow to agriculture, small-scale industries, cottage and village industries,
handicrafts and other rural crafts. It also plays a vital role in supporting all other
allied economic activities in rural areas. Its operations include :
• Providing refinance to lending institutions in rural areas
• Promoting institutional development
• Evaluating, monitoring and inspecting the client banks
• Acts as a coordinator in the operations of rural credit institutions
• Extends assistance to the government, the Reserve Bank of India and other
organizations in matters relating to rural development
• Offers training and research facilities for banks, cooperatives and
organizations working in the field of rural development
• Helps the state governments in reaching their targets of providing assistance
to eligible institutions in agriculture and rural development
• Acts as regulator for cooperative banks and RRBs 

Which of the following is/are the role of NABARD?

  1. Providing re-finance to leading institutions in the rural area

  2. Bringing about institutional developments

  3. Monitoring and inspecting client banks

  4. All of the above


Correct Option: D
Explanation:
Role of NABARD:

1. It is an apex institution which has power to deal with all matters concerning policy, planning as well as operations in giving credit for agriculture and other economic activities in the rural areas.

2. It is a refinancing agency for those institutions that provide investment and production credit for promoting the several developmental programs for rural development.

3. It is improving the absorptive capacity of the credit delivery system in India, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, and training of personnel.

4. It co-ordinates the rural credit financing activities of all sorts of institutions engaged in developmental work at the field level while maintaining liaison with Government of India, and State Governments, and also RBI and other national level institutions that are concerned with policy formulation.

5. It prepares rural credit plans, annually, for all districts in the country.

6. It also promotes research in rural banking, and the field of agriculture and rural development.

NABARD was established by an Act of Parliament.

  1. True

  2. False


Correct Option: A
Explanation:

True

NABARD was established on the recommendations of B.Sivaraman Committee, (by Act 61, 1981 of Parliament) on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981. It replaced the Agricultural Credit Department  and Rural Planning and Credit Cell of Reserve Bank of India, and Agricultural Refinance and Development Corporation. It is one of the premier agencies providing developmental credit in rural areas. NABARD is India's specialised bank for Agriculture and Rural Development in India.

Promotion of employment-oriented industries is one of the objectives of SIDBI.

  1. True

  2. False


Correct Option: A
Explanation:

True

In the setting up of SIDBI, the main purpose of the government was to ensure larger flow of assistance to the small-scale units. To meet this objective, the immediate thrust of the SIDBI was on the following measures:

(i) initiating steps for technological upgradation and modernisation of existing units;

(ii) expanding the channels for marketing the products of the small scale sector; and

(iii) promotion of employment-oriented industries, especially in semi- urban areas to create more employ­ment opportunities and thereby checking migration of population to urban areas.

The _____________ scheme of NABARD that lets the farmers sell their produce at a fair price by retaining their farm produce till the market prices become favorable.

  1. Dairy Entrepreneurship Development Scheme

  2. Solar Schemes

  3. Agricultural and Marketing Infrastructure, Grading and Standardization

  4. Rural Godowns


Correct Option: D
Explanation:

The Rural Godowns scheme of NABARD that lets the farmers sell their produce at a fair price by retaining their farm produce till the market prices become favorable

The main objectives of the scheme include creation of scientific storage capacity with allied facilities in rural areas to meet the requirements of farmers for storing farm produce, processed farm produce, consumer articles and agricultural inputs; promotion of grading, standardization and quality control of agricultural produce to improve their marketability; prevention of distress sale immediately after harvest, promotion of pledge financing and marketing credit and to strengthen agricultural marketing infrastructure in the country for the introduction of a national system of warehouse receipts in respect of agricultural commodities stored in such godowns. However, the materials used and design of the godown would depend upon the produce proposed to be stored.

Which of the following is the bank that is a part of MDM Bachat Gat?

  1. MDMBGF

  2. MDMSB

  3. MVSS

  4. None of the above


Correct Option: B

Micro, small and medium Enterprises play an important role in a country's economic and industrial development that is
(1) They have the capacity to absorb skilled and unskilled labour available in the country.
(2) Such institution provide lots of employment and allow income to get concentrated in few hands or in few areas.
(3)They help in eradication of poverty by providing self-employment opportunities.
Select the most appropriate  

  1. Only (1)

  2. Only (2)

  3. Only (3)

  4. Only (1) & (3)


Correct Option: D

Choose the project initiated by Dr. Mohammad Yunus in Chitagaon University to support landless poor women to promote self-employment.

  1. Mahila Bachat Bank

  2. Gramin Bank

  3. Micro-Finance Bank

  4. None of the above


Correct Option: B
Explanation:
Gramin Bank s a microfinance organisation and community development bank founded in Bangladesh. It makes small loans (known as microcredit or "gramincredit") to the impoverished without requiring collateral.

Gramin Bank originated in 1976, in the work of Professor Muhammad Yunus at University of Chittagong, who launched a research project to study how to design a credit delivery system to provide banking services to the rural poor. In October 1983 the Grameen Bank was authorised by national legislation to operate as an independent bank

One of the leading objectives of Mahila Bachat Gat is ___________.

  1. to extend assistance to the Government and RBI

  2. initiating steps for technological upgradation and modernisation of existing units

  3. providing grants of Rs 75,000 to each small business units for obtaining ISO 9000 certification

  4. income generation for low-income group women


Correct Option: D

Under Mahila Bachat Gat, loan against gold is provided for the duration of ___.

  1. 2 years

  2. 6 month

  3. 8 months

  4. 1 year


Correct Option: D

Active participation in village education committee is one of the social responsibilities of Mahila Bachat Gat.

  1. True

  2. False


Correct Option: A

Identify the Mahila Bachat Gat in Devrukh, Maharashtra.

  1. Pragati Mahila Bachat Gat

  2. Swamini Mahila Bachat Gat

  3. Asha Mahila Gat

  4. Om Shanti Mahila Bachat Ghat


Correct Option: A

Group loan under Mahila Bachat Gat is borrowed from bank at __________ lending rate.

  1. Co-operative

  2. Reverse Repo

  3. Repo

  4. Fixed


Correct Option: A

Clients of Mann Deshi Mahila Bachat Gat are rural women with a daily income of less than Rs 60.

  1. True

  2. False


Correct Option: A

Short term loan under Mahila Bachat Gat is for a duration less than ____.

  1. 6 months

  2. 5 months

  3. 1 year

  4. 1.5years


Correct Option: C

Which one of the following is a key in the firm's growth phase?

  1. Increase in scale

  2. Increase in profit

  3. Increase in capital

  4. All of the above


Correct Option: D
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