UPSC Prelims Practice Questions — ECLGS 5.0 Achieves a Major Milestone, Guarantee Issuance Crosses 1 Lakh Mark, with total amount of guarantees more than ₹48,000 Crore
Q1. Under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, which one of the following categories of Member Lending Institutions has accounted for the largest share (by number) of guarantees issued as on June 2026?
- A. Private Sector Banks
- B. Public Sector Banks
- C. Non-Banking Financial Companies
- D. Small Finance Banks
Q2. With reference to the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, which one of the following is the trustee entity that operationalises the scheme by extending guarantees to Member Lending Institutions?
- A. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- B. Small Industries Development Bank of India (SIDBI)
- C. National Credit Guarantee Trustee Company Limited (NCGTC)
- D. Micro Units Development and Refinance Agency (MUDRA)
Q3. In which year was the National Credit Guarantee Trustee Company Ltd (NCGTC), the implementing agency for the Emergency Credit Line Guarantee Scheme (ECLGS), incorporated?
- A. 2008
- B. 2014
- C. 2018
- D. 2020
Q4. Which one of the following is the nodal authority that wholly owns the National Credit Guarantee Trustee Company Ltd (NCGTC), the agency operating the Emergency Credit Line Guarantee Scheme?
- A. Reserve Bank of India
- B. Small Industries Development Bank of India
- C. Department of Financial Services, Ministry of Finance
- D. Ministry of Micro, Small and Medium Enterprises
Q5. Which one of the following is the designated implementing/trustee agency for the Emergency Credit Line Guarantee Scheme (ECLGS) under the Ministry of Finance?
- A. Small Industries Development Bank of India (SIDBI)
- B. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- C. National Credit Guarantee Trustee Company Ltd (NCGTC)
- D. Micro Units Development and Refinance Agency (MUDRA)
Q6. Under ECLGS 2.0, the guarantee cover was extended to how many stressed sectors identified by the Kamath Committee (in addition to the healthcare sector)?
Q7. With reference to the revised classification of Micro, Small and Medium Enterprises (MSMEs) that came into effect from 1 April 2025, consider the following statements:
1. The investment limit for a Medium enterprise was raised from ₹50 crore to ₹125 crore.
2. The turnover limit for a Small enterprise was raised from ₹50 crore to ₹250 crore.
3. The investment limit for a Micro enterprise was raised from ₹1 crore to ₹2.5 crore.
Which of the statements given above is/are correct?
- The investment limit for a Medium enterprise was raised from ₹50 crore to ₹125 crore.
- The turnover limit for a Small enterprise was raised from ₹50 crore to ₹250 crore.
- The investment limit for a Micro enterprise was raised from ₹1 crore to ₹2.5 crore.
- A. 1 and 2 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q8. With reference to the classification of Micro, Small and Medium Enterprises (MSMEs) under the MSMED Act, 2006 (as amended), consider the following statements:
1. The Act is administered by the Ministry of Finance, Department of Financial Services.
2. Classification of an enterprise is based on a composite criterion of investment in plant & machinery/equipment and annual turnover.
3. Exports are excluded from the calculation of turnover for the purpose of MSME classification.
4. The classification prescribes separate thresholds for manufacturing enterprises and service enterprises.
Which of the statements given above is/are correctly identified?
- The Act is administered by the Ministry of Finance, Department of Financial Services.
- Classification of an enterprise is based on a composite criterion of investment in plant & machinery/equipment and annual turnover.
- Exports are excluded from the calculation of turnover for the purpose of MSME classification.
- The classification prescribes separate thresholds for manufacturing enterprises and service enterprises.
- A. 1 and 3 only
- B. 2 and 3 only
- C. 1, 2 and 4
- D. 3 only
Q9. Among the following credit-support schemes operating in India, which one was the EARLIEST to be launched?
- A. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- B. Pradhan Mantri Mudra Yojana (PMMY)
- C. Stand-Up India
- D. Emergency Credit Line Guarantee Scheme (ECLGS)
Q10. Consider the following statements with reference to the taxation of Aviation Turbine Fuel (ATF) in India: Which of the statements given above is/are NOT correct?
- ATF is currently kept outside the levy of Goods and Services Tax (GST).
- The Central Government levies excise duty on ATF on an ad-valorem basis, while States levy VAT on a specific (per litre) basis.
- State Governments are competent to levy VAT/Sales Tax on ATF.
- Article 246A of the Constitution empowers the GST Council to recommend the date on which GST shall be levied on ATF.
- A. 1 and 3
- B. 2 and 4
- C. 1, 2 and 4
- D. 3 only
Q11. With reference to Aviation Turbine Fuel (ATF) and the aviation sector in India, consider the following statements. Which of the statements given above is/are correct?
- The constitutional provision under which the date of GST levy on ATF is to be decided by the GST Council is Article 279A(5).
- The Aviation Turbine Fuel (Regulation of Marketing) Order, 2001 was amended in 2026 to bring SAF-blended ATF under its ambit.
- The Union Civil Aviation Ministry has urged States/UTs to rationalize VAT on ATF within the band of 1% to 4%.
- Under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, the airline sector is eligible for a 100% credit guarantee cover.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1, 2 and 3 only
- D. 1, 2, 3 and 4
Q12. With reference to the K.V. Kamath Expert Committee (2020) and the Emergency Credit Line Guarantee Scheme (ECLGS) 2.0, consider the following statements:
1. The Kamath Committee was constituted by the Reserve Bank of India under its Resolution Framework for COVID-19-related Stress, whereas ECLGS 2.0 was launched by the Government of India and operationalised through the National Credit Guarantee Trustee Company (NCGTC).
2. The Kamath Committee recommended sector-specific financial parameters for 26 stressed sectors, and ECLGS 2.0 was extended to those 26 sectors together with the healthcare sector.
3. The five financial parameters identified by the Kamath Committee — TOL/ATNW, Total Debt/EBITDA, Current Ratio, DSCR and ADSCR — were prescribed by the Reserve Bank of India exclusively for the healthcare sector and not for the 26 stressed sectors.
Which of the statements given above is/are correct?
- The Kamath Committee was constituted by the Reserve Bank of India under its Resolution Framework for COVID-19-related Stress, whereas ECLGS 2.0 was launched by the Government of India and operationalised through the National Credit Guarantee Trustee Company (NCGTC).
- The Kamath Committee recommended sector-specific financial parameters for 26 stressed sectors, and ECLGS 2.0 was extended to those 26 sectors together with the healthcare sector.
- The five financial parameters identified by the Kamath Committee — TOL/ATNW, Total Debt/EBITDA, Current Ratio, DSCR and ADSCR — were prescribed by the Reserve Bank of India exclusively for the healthcare sector and not for the 26 stressed sectors.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q13. Which of the following is/are correctly identified as a financial parameter recommended by the K.V. Kamath Expert Committee (2020) for resolution plans of borrowers under the RBI's Resolution Framework for COVID-19-related Stress?
1. Total Outside Liabilities to Adjusted Tangible Net Worth (TOL/ATNW)
2. Debt Service Coverage Ratio (DSCR)
3. Capital Adequacy Ratio (CAR)
4. Current Ratio
Which of the above is/are correctly identified?
- Total Outside Liabilities to Adjusted Tangible Net Worth (TOL/ATNW)
- Debt Service Coverage Ratio (DSCR)
- Capital Adequacy Ratio (CAR)
- Current Ratio
- A. 1 and 3 only
- B. 2 and 4 only
- C. 1, 2 and 4 only
- D. 1, 2, 3 and 4
Q14. With reference to the Aatmanirbhar Bharat Abhiyan announced in May 2020, consider the following pillars on which a self-reliant India was envisaged to stand:
1. Economy
2. Governance
3. Vibrant Demography
4. Innovation
Which of the above is/are NOT correctly identified as one of the five pillars of the Abhiyan?
- Economy
- Governance
- Vibrant Demography
- Innovation
- A. 1 and 3 only
- B. 2 and 4 only
- C. 1, 2 and 4
- D. 3 and 4 only
Q15. With reference to the revised classification of Micro, Small and Medium Enterprises (MSMEs) notified as part of the Aatmanirbhar Bharat Abhiyan, as compared to the earlier classification, consider the following statements:
1. The revised definition adopted a composite criterion based on both investment in plant and machinery and annual turnover, in place of the earlier investment-only criterion.
2. The revised definition retained the distinction between manufacturing enterprises and service enterprises.
3. Under the revised definition, the turnover from exports is excluded while computing the turnover limits for classification.
Which of the statements given above is/are correct?
- The revised definition adopted a composite criterion based on both investment in plant and machinery and annual turnover, in place of the earlier investment-only criterion.
- The revised definition retained the distinction between manufacturing enterprises and service enterprises.
- Under the revised definition, the turnover from exports is excluded while computing the turnover limits for classification.
- A. 1 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3