UPSC Prelims Practice Questions — Cabinet approves Emergency Credit Line Guarantee Scheme 5.0

Question 1

The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 is administered as a trustee by which one of the following entities?

Accepted Answer

National Credit Guarantee Trustee Company Ltd (NCGTC)

Answer

Small Industries Development Bank of India (SIDBI)

Answer

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Answer

Export Credit Guarantee Corporation of India (ECGC) Ltd

Question 2

The Emergency Credit Line Guarantee Scheme (ECLGS), including its latest 5.0 version, is operationalised through which one of the following entities as the trustee/implementing agency?

Accepted Answer

National Credit Guarantee Trustee Company Limited (NCGTC)

Answer

Small Industries Development Bank of India (SIDBI)

Answer

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Answer

Export Credit Guarantee Corporation of India (ECGC)

Question 3

ECLGS 2.0 extended the coverage of the Emergency Credit Line Guarantee Scheme to 26 stressed sectors identified by which one of the following committees?

Accepted Answer

K.V. Kamath Committee

Answer

U.K. Sinha Committee

Answer

P.J. Nayak Committee

Answer

Urjit Patel Committee

Question 4

The National Credit Guarantee Trustee Company (NCGTC), which acts as the trustee for the Emergency Credit Line Guarantee Scheme, is a wholly-owned entity of which one of the following?

Accepted Answer

Department of Financial Services, Ministry of Finance

Answer

Reserve Bank of India

Answer

Small Industries Development Bank of India (SIDBI)

Answer

Ministry of Micro, Small and Medium Enterprises

Question 5

With reference to the Emergency Credit Line Guarantee Scheme (ECLGS) launched in 2020, the National Credit Guarantee Trustee Company (NCGTC) is best described as which one of the following?

Accepted Answer

A wholly-owned company of the Department of Financial Services, Ministry of Finance, acting as trustee for credit guarantee funds

Answer

A statutory body constituted under the Small Industries Development Bank of India Act, 1989

Answer

A wholly-owned subsidiary of the Reserve Bank of India that refinances Member Lending Institutions

Answer

An autonomous body under the Ministry of Micro, Small and Medium Enterprises that issues sovereign guarantees

Question 6

Under which one of the following ministries/departments of the Government of India is the Emergency Credit Line Guarantee Scheme (ECLGS) operationalised?

Accepted Answer

Department of Financial Services, Ministry of Finance

Answer

Ministry of Micro, Small and Medium Enterprises

Answer

Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry

Answer

Department of Economic Affairs, Ministry of Finance

Question 7

Under Article 279A of the Constitution of India, how many petroleum products are currently kept outside the levy of Goods and Services Tax (GST) until the GST Council recommends a date for their inclusion?

Accepted Answer

Five

Answer

Three

Answer

Four

Answer

Six

Question 8

Which one of the following is the principal statutory regulator responsible for the safety oversight, airworthiness certification and licensing of scheduled airline operations in India?

Accepted Answer

Directorate General of Civil Aviation (DGCA)

Answer

Airports Authority of India (AAI)

Answer

Airports Economic Regulatory Authority (AERA)

Answer

Bureau of Civil Aviation Security (BCAS)

Question 9

With reference to the 26 stressed sectors identified by the K.V. Kamath Committee (2020) under the Reserve Bank of India's Resolution Framework for COVID-19-related Stress, consider the following sectors:
1. Aviation
2. Information Technology and Software Services
3. Power
4. Education Services
Which of the above is/are correctly identified as being among the 26 sectors?

Accepted Answer

1 and 3 only

Answer

2 and 4 only

Answer

1, 2 and 3

Answer

3 and 4 only

Question 10

In the context of the Reserve Bank of India's Resolution Framework for COVID-19-related Stress (August 2020), what was the principal mandate of the Expert Committee headed by Shri K.V. Kamath?

Accepted Answer

To recommend sector-specific financial parameters, including key ratios, to be factored into resolution plans of eligible stressed borrowers

Answer

To identify Member Lending Institutions eligible to disburse credit under the Emergency Credit Line Guarantee Scheme

Answer

To prescribe revised income-recognition and provisioning norms for non-performing assets of scheduled commercial banks

Answer

To draft a uniform framework for cross-border insolvency proceedings under the Insolvency and Bankruptcy Code

Question 11

With reference to credit guarantee schemes in India, consider the following pairings of a scheme with the entity that administers/operates it:
1. Credit Guarantee Scheme for Startups (CGSS) — National Credit Guarantee Trustee Company Ltd. (NCGTC)
2. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) — National Credit Guarantee Trustee Company Ltd. (NCGTC)
3. Credit Guarantee Fund for Micro Units (CGFMU) — National Credit Guarantee Trustee Company Ltd. (NCGTC)
4. Emergency Credit Line Guarantee Scheme (ECLGS) — Reserve Bank of India (RBI)
Which of the pairings given above is/are correctly matched?

Accepted Answer

1 and 3 only

Answer

2 and 4 only

Answer

1, 3 and 4

Answer

1, 2, 3 and 4

Question 12

In the context of Government of India's financing measures for the startup ecosystem, the term 'Credit Guarantee Scheme for Startups (CGSS)' is best described as a scheme that:

Accepted Answer

Provides credit guarantee cover, operated by the National Credit Guarantee Trustee Company Ltd., on collateral-free debt funding extended by Scheduled Commercial Banks, NBFCs and SEBI-registered Alternative Investment Funds to DPIIT-recognized startups

Answer

Provides equity infusion into DPIIT-recognized startups through the SIDBI-managed Fund of Funds for Startups (FFS), with a ceiling of Rs 20 crore per startup

Answer

Provides interest subvention to Scheduled Commercial Banks on working capital loans extended to enterprises registered on the Udyam portal, operated by CGTMSE

Answer

Provides a sovereign guarantee through the Reserve Bank of India on External Commercial Borrowings raised by DPIIT-recognized startups from overseas venture debt funds

Question 13

In the context of Indian carriers' international operations being disrupted by the West Asia airspace situation, the 'Convention on International Civil Aviation, 1944' (Chicago Convention) is the founding instrument of which one of the following organisations?

Accepted Answer

International Civil Aviation Organization (ICAO)

Answer

International Air Transport Association (IATA)

Answer

International Maritime Organization (IMO)

Answer

International Telecommunication Union (ITU)

Question 14

In the financial stress profile of Indian airlines cited while approving the Emergency Credit Line Guarantee Scheme 5.0 (May 2026), which one of the following constitutes the single largest component of an Indian carrier's operating cost?

Accepted Answer

Aviation Turbine Fuel (ATF)

Answer

Aircraft lease and maintenance charges

Answer

Flight crew and cabin staff salaries

Answer

Airport user development and landing/parking charges

UPSC Prelims Practice Questions — Cabinet approves Emergency Credit Line Guarantee Scheme 5.0

Q1. The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 is administered as a trustee by which one of the following entities?

Q2. The Emergency Credit Line Guarantee Scheme (ECLGS), including its latest 5.0 version, is operationalised through which one of the following entities as the trustee/implementing agency?

Q3. ECLGS 2.0 extended the coverage of the Emergency Credit Line Guarantee Scheme to 26 stressed sectors identified by which one of the following committees?

Q4. The National Credit Guarantee Trustee Company (NCGTC), which acts as the trustee for the Emergency Credit Line Guarantee Scheme, is a wholly-owned entity of which one of the following?

Q5. With reference to the Emergency Credit Line Guarantee Scheme (ECLGS) launched in 2020, the National Credit Guarantee Trustee Company (NCGTC) is best described as which one of the following?

Q6. Under which one of the following ministries/departments of the Government of India is the Emergency Credit Line Guarantee Scheme (ECLGS) operationalised?

Q7. Under Article 279A of the Constitution of India, how many petroleum products are currently kept outside the levy of Goods and Services Tax (GST) until the GST Council recommends a date for their inclusion?

Q8. Which one of the following is the principal statutory regulator responsible for the safety oversight, airworthiness certification and licensing of scheduled airline operations in India?

Q10. In the context of the Reserve Bank of India's Resolution Framework for COVID-19-related Stress (August 2020), what was the principal mandate of the Expert Committee headed by Shri K.V. Kamath?

Q12. In the context of Government of India's financing measures for the startup ecosystem, the term 'Credit Guarantee Scheme for Startups (CGSS)' is best described as a scheme that:

Q13. In the context of Indian carriers' international operations being disrupted by the West Asia airspace situation, the 'Convention on International Civil Aviation, 1944' (Chicago Convention) is the founding instrument of which one of the following organisations?

Q14. In the financial stress profile of Indian airlines cited while approving the Emergency Credit Line Guarantee Scheme 5.0 (May 2026), which one of the following constitutes the single largest component of an Indian carrier's operating cost?