UPSC Prelims Practice Questions — 11 Years of Pradhan Mantri MUDRA Yojana
Q1. With reference to the institutional architecture of the Pradhan Mantri MUDRA Yojana (PMMY), consider the following:
1. MUDRA Ltd. is a wholly owned subsidiary of the Small Industries Development Bank of India (SIDBI).
2. The nodal authority for the scheme is the Department of Financial Services under the Ministry of Finance.
3. MUDRA Ltd. functions primarily as a refinance agency to the lending institutions.
4. The scheme is administered by the Ministry of Micro, Small and Medium Enterprises (MSME).
Which of the above is/are correctly identified?
- MUDRA Ltd. is a wholly owned subsidiary of the Small Industries Development Bank of India (SIDBI).
- The nodal authority for the scheme is the Department of Financial Services under the Ministry of Finance.
- MUDRA Ltd. functions primarily as a refinance agency to the lending institutions.
- The scheme is administered by the Ministry of Micro, Small and Medium Enterprises (MSME).
- A. 1, 2 and 3
- B. 2 and 4 only
- C. 1 and 3 only
- D. 1, 2 and 4
Q2. With reference to the entities associated with the Pradhan Mantri MUDRA Yojana, consider the following institution–role pairings:
1. SIDBI — parent institution of MUDRA Ltd.
2. NCGTC — administers the guarantee fund for micro units.
3. Reserve Bank of India — the designated implementing agency that disburses MUDRA loans.
4. Department of Financial Services — the nodal department of the scheme.
Which of the above pairings is/are NOT correct?
- SIDBI — parent institution of MUDRA Ltd.
- NCGTC — administers the guarantee fund for micro units.
- Reserve Bank of India — the designated implementing agency that disburses MUDRA loans.
- Department of Financial Services — the nodal department of the scheme.
- A. 3 only
- B. 1 and 3
- C. 2 and 4 only
- D. 3 and 4
Q3. The 'Tarun Plus' loan category under the Pradhan Mantri MUDRA Yojana was created following an announcement made in which one of the following?
- A. Union Budget 2024-25
- B. Union Budget 2023-24
- C. Union Budget 2022-23
- D. Union Budget 2025-26
Q4. Refinance support to the lending institutions extending loans across the Shishu, Kishor, Tarun and Tarun Plus categories of PMMY is provided by which one of the following?
- A. MUDRA Ltd., a subsidiary of SIDBI
- B. National Bank for Agriculture and Rural Development (NABARD)
- C. National Credit Guarantee Trustee Company (NCGTC)
- D. National Housing Bank (NHB)
Q5. With reference to the enhancement of the PMMY loan ceiling introduced through the Union Budget 2024-25, consider the following:
1. The collateral-free loan ceiling was raised from ₹10 lakh to ₹20 lakh.
2. The enhanced ceiling took effect from 24 October 2024.
3. The enhancement was implemented by adding a new 'Tarun Plus' category.
4. The ₹20 lakh limit is available only to first-time (new) MUDRA borrowers.
Which of the above is/are correctly stated?
- The collateral-free loan ceiling was raised from ₹10 lakh to ₹20 lakh.
- The enhanced ceiling took effect from 24 October 2024.
- The enhancement was implemented by adding a new 'Tarun Plus' category.
- The ₹20 lakh limit is available only to first-time (new) MUDRA borrowers.
- A. 1, 2 and 3
- B. 1, 3 and 4
- C. 2 and 4 only
- D. 1, 2, 3 and 4
Q6. The Credit Guarantee Fund for Micro Units (CGFMU), which provides guarantee cover for loans sanctioned under the PMMY, is administered exclusively by which one of the following?
- A. National Credit Guarantee Trustee Company (NCGTC)
- B. Small Industries Development Bank of India (SIDBI)
- C. MUDRA Ltd.
- D. Reserve Bank of India
Q7. With reference to the Credit Guarantee Fund for Micro Units (CGFMU), consider the following:
1. It provides guarantee cover for loans sanctioned under the Pradhan Mantri MUDRA Yojana.
2. It is administered by the National Credit Guarantee Trustee Company (NCGTC).
3. Its guarantee cover has been extended to loans up to ₹20 lakh.
4. It provides a capital subsidy directly to the borrowers.
Which of the above is/are correctly identified?
- It provides guarantee cover for loans sanctioned under the Pradhan Mantri MUDRA Yojana.
- It is administered by the National Credit Guarantee Trustee Company (NCGTC).
- Its guarantee cover has been extended to loans up to ₹20 lakh.
- It provides a capital subsidy directly to the borrowers.
- A. 1, 2 and 3
- B. 2 and 4 only
- C. 1, 3 and 4
- D. 1 and 2 only
Q8. As per the PIB backgrounder marking 11 years of the Pradhan Mantri MUDRA Yojana, consider the following:
1. More than 57 crore loan accounts have been sanctioned since inception.
2. The cumulative amount sanctioned is of the order of ₹40 lakh crore.
3. Women borrowers accounted for close to 60% of the total loan accounts.
4. New entrepreneurs accounted for about 50% of the total loan accounts.
Which of the above is/are correctly identified?
- More than 57 crore loan accounts have been sanctioned since inception.
- The cumulative amount sanctioned is of the order of ₹40 lakh crore.
- Women borrowers accounted for close to 60% of the total loan accounts.
- New entrepreneurs accounted for about 50% of the total loan accounts.
- A. 1, 2 and 3
- B. 2 and 4 only
- C. 1, 3 and 4
- D. 1, 2 and 4
Q9. As per the 11-year performance data of the Pradhan Mantri MUDRA Yojana, which one of the following states recorded the highest loan disbursement?
- A. Uttar Pradesh
- B. Bihar
- C. Maharashtra
- D. Tamil Nadu
Q10. With reference to eligibility and the lending channels of the Pradhan Mantri MUDRA Yojana, consider the following statements:
1. Unlike agricultural crop loans, PMMY finances non-corporate, non-farm income-generating activities.
2. Activities allied to agriculture such as dairy, poultry and beekeeping are eligible for financing under PMMY.
3. Unlike scheduled commercial banks, NBFCs and MFIs are excluded from acting as lending institutions under PMMY.
Which of the statements given above is/are correct?
- Unlike agricultural crop loans, PMMY finances non-corporate, non-farm income-generating activities.
- Activities allied to agriculture such as dairy, poultry and beekeeping are eligible for financing under PMMY.
- Unlike scheduled commercial banks, NBFCs and MFIs are excluded from acting as lending institutions under PMMY.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q11. PM SVANidhi, a micro-credit scheme for street vendors often studied alongside the PMMY, is implemented under the administrative authority of which one of the following ministries?
- A. Ministry of Housing and Urban Affairs
- B. Ministry of Finance
- C. Ministry of Micro, Small and Medium Enterprises
- D. Ministry of Rural Development