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?

  • 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. Export Credit Guarantee Corporation of India (ECGC) Ltd

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?

  • 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 Limited (NCGTC)
  • D. Export Credit Guarantee Corporation of India (ECGC)

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?

  • A. U.K. Sinha Committee
  • B. K.V. Kamath Committee
  • C. P.J. Nayak Committee
  • D. Urjit Patel Committee

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?

  • A. Reserve Bank of India
  • B. Small Industries Development Bank of India (SIDBI)
  • C. Department of Financial Services, Ministry of Finance
  • D. Ministry of Micro, Small and Medium Enterprises

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?

  • A. A statutory body constituted under the Small Industries Development Bank of India Act, 1989
  • B. A wholly-owned company of the Department of Financial Services, Ministry of Finance, acting as trustee for credit guarantee funds
  • C. A wholly-owned subsidiary of the Reserve Bank of India that refinances Member Lending Institutions
  • D. An autonomous body under the Ministry of Micro, Small and Medium Enterprises that issues sovereign guarantees

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

  • A. Ministry of Micro, Small and Medium Enterprises
  • B. Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
  • C. Department of Financial Services, Ministry of Finance
  • D. Department of Economic Affairs, Ministry of Finance

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?

  • A. Three
  • B. Four
  • C. Five
  • D. Six

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?

  • A. Airports Authority of India (AAI)
  • B. Airports Economic Regulatory Authority (AERA)
  • C. Directorate General of Civil Aviation (DGCA)
  • D. Bureau of Civil Aviation Security (BCAS)

Q9. 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?

  1. Aviation
  2. Information Technology and Software Services
  3. Power
  4. Education Services
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 3
  • D. 3 and 4 only

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?

  • A. To recommend sector-specific financial parameters, including key ratios, to be factored into resolution plans of eligible stressed borrowers
  • B. To identify Member Lending Institutions eligible to disburse credit under the Emergency Credit Line Guarantee Scheme
  • C. To prescribe revised income-recognition and provisioning norms for non-performing assets of scheduled commercial banks
  • D. To draft a uniform framework for cross-border insolvency proceedings under the Insolvency and Bankruptcy Code

Q11. 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?

  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)
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 3 and 4
  • D. 1, 2, 3 and 4

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:

  • A. 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
  • B. 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
  • C. Provides interest subvention to Scheduled Commercial Banks on working capital loans extended to enterprises registered on the Udyam portal, operated by CGTMSE
  • D. Provides a sovereign guarantee through the Reserve Bank of India on External Commercial Borrowings raised by DPIIT-recognized startups from overseas venture debt funds

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?

  • A. International Civil Aviation Organization (ICAO)
  • B. International Air Transport Association (IATA)
  • C. International Maritime Organization (IMO)
  • D. International Telecommunication Union (ITU)

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?

  • A. Aviation Turbine Fuel (ATF)
  • B. Aircraft lease and maintenance charges
  • C. Flight crew and cabin staff salaries
  • D. Airport user development and landing/parking charges
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