Professional Documents
Culture Documents
Msme
Msme
1. Which sector TUF applies to? a)Textile* b)Shoe manufacture, c)Food processing,
d)Glass manufacture
2. Which one of the following institution has initiated Project uptech scheme?
markets
4. Which one of the following factors is not included in the Market Gap?
d)Group leader
6.Under the Revised RBI Guidelines on Priority Sector Lending, loans to food and agro
processing units are classified under a) Agriculture *b) MSME c) Others d) None
7. Under the Revised RBI Guidel ines on Priority Sector Lending, loans to
medium enterprises are not included for the purpose of reckoning of advances
8. Bank loans up to per unit to Micro and Small Enterprises and to Medium
Enterprises under services sector are classified under priority sector. a) Rs 5 and 10
crore* b) Rs 10 and 15 crore c) Rs 10 and 5 crore d) Rs 15 and 10 crore
9. The quantum of loan limit under the revised General Credit Card (GCC) Scheme is
10.The maximum claim settlement under Credit Guarantee Trust Scheme for Micro and
11. MSME loans covered under Guarantee Fund Trust for Micro and Small Enterprises
(CGTMSE) attracts risk weight for capital adequacy purpose: a) Five b) Fifty c)
Hundred d) Zero*
13. The rate of subsidy under PMEGP scheme ranges from ___% to ___% : a) 10&
14. Advances to MSMEs up to Rs crore may be done on the basis of credit scoring
model.
a) 1 b) 2* c) 3 d) 4
15. The Chairman of Committee on Financial Architecture for Micro, Small and
16. The small finance bank shall primarily undertake finance to the following entities
17. MUDRA stands for : a)Metropolitan and Urban Development Regulatory Authority
a) any of the borrowal account of the enterprise remains NPA for three months or
more
b) There is erosion in the net worth due to accumulated losses to the extent of 50% of its net
worth, c) Any of the borrowal account of the enterprise remains NPA for 6 months or more. d) a
and b*
19. Micro (manufacturing) enterprises are defined as those whose original investment in Plant
and
machinery do not exceed Rs. ... a) 5 lakhs b) 10 lakhs c) 25 lakhs *d) 50 lakhs
20. Under the proposed MSMED Amendment Bill, 2014, the revised investment limit in plant
and
21. Under the Debt Restructuring Mechanism for MSMEs, the following entities will be
considered.
b) All corporate MSMEs, which are enjoying banking facilities from a single bank, irrespective of
the
c) All corporate MSMEs, which have funded and non-funded outstanding up to Rs.10 crore under
22. The Code of Bank's Commitment to MSE's which set minimum standards of banking and
practices
for banks to follow when they are dealing with MSEs has been formulated by a)BCSBI* b) SIDBI
c)
RBI d) GOI
24. Banks are mandated not to accept collateral security in the case of loans upto Rs. extended
to units
25. The quantum of loan limit under the revised General Credit Card (GCC) Scheme is
28. The first step in training design is the identification of a) Trainee b) Training Needs*
29. Active Methods of Training are, a)Lecture, b)Group Discussion, c) Demonstration, d)Case
Study
31. Make in India programme aims : a) To increase GDP growth b) To increase tax revenue.
c) Aims at high quality standards, d) Minimizethe impact on the environment, e) All of these*
32. Governing Council of Skill India Mission is Chaired by a) MSME Minister b) Finance Minister
a) A single window IT platform for services of all Central GovtDepts and Ministries**
b) A single window IT platform for services of all State GovtDepts and Ministries
c) A single window IT platform for services of all International Agencies ,d) None of these
and Small Enterprises for 2014-15 is:a) Rs.8,461 bn, b)Rs.6,872 bn, c) Rs.25,229bn,
d)Rs.9,645bn**
39.The implementing agencies of CLCSS are : a)SIDBI, b)NABARD c)SIDBI & NABARD d)RBI &**
SIDBI
41.As per MSMED Act, time limit for buyer to make payment to MSMEs is,
42.Maximum claim amount settled for micro enterprises with loan upto
43.Application for guarantee cover should be lodged with CGTMSE within of loan sanctioned.
A )Next months b) next quarter** c) within six months d) no time limit
a) Guarantee Cover is in force , b) Account classified as NPA ,c) Recall Notice issued
d) Lock-in period expired**, e) Recovery proceedings initiated : i) a&b, ii)a,b,c iii) a,b,c,d iv)All
b) Long Term Liabilities/Tangible Net Worth ,c) Both the above , d) None of the above
47. The debt-equity ratio of a firm has increased (increase in long term sources) along with its
current
c) Sources of funds have been used for payment of current assets ,d) (b) & (c) both**
a) Profit after tax + depreciation - interest on term loan/annual term loan instalment + interest
on
term loan
b) Profit before depreciation and Interest / Interest and annual instalment of Term Loan***
50. If current ratio is above 2:1, it generally means that the firm :
a) Out of order for more than 90 days **, b)Out of order for more than 180 days
c) Out of order for more than 270 days, d) Out of order for more than 360 days
55. The Standard Provision for MSME loans prescribed by RBI is: a)0.40% b)0.25%**, c)1.00%
d)0.75%
56. SMEs are important for the nation's economy because they significantly contribute to:-
57. The minimum and maximum members that can exist in a partnership firm are
___________ & _________ : a)2 & 10, b) 2 & 100,** c)2 & 30, d) 2 & 50, e)No restriction
58. Public Ltd Company has minimum shareholders :a)50, b)20, c)100, d)7**
59. MSMED Act was enacted in ________ :a) 2005, b)2008, c)2006**, d)2010
60.Which one of the following activities is not included in Micro & Small (Service)
61.PPP denotes ________ :a) Private Public Participation, b) Promoter Partner Participation
62. Which one of the following stages of development of SMEs regulations are not required?
63. LLP stands for _________: a)Long term Liability Participation, b) Limited Liability
Partnership**
64. Composite Loan limit for SSI that can be sanctioned without security is Rs.__: a)1 Mn. , b)2.5
**Mn.
65. What is the minimum and maximum number of participants in LLP? :a)2, 50, b) 2, 20
66. The organizational set up of SSI came into being in : a)1950 **, b)1954, c) 1969 , d)1975
67. Which one of the following support services are not provided by MSME DO?
69. Which one of the following organizations is not under the control of the State Government?
d)EDII*
70. What is the maximum amount of guarantee available for Micro Enterprise upto credit limit of
Rs. 5.00 Lakh? : a) Rs. 5.00 Lakh**, b)Rs. 3.75 Lakh, c)Rs. 2.50 Lakh, d) Rs. 4.25 Lakh
71. What is 'hurt money'? :a) Equity (***b)Loan, c) Debt d) Venture Capital
74. Pre-shipment credit refers to : a)Financing ships for export ,b)Payment to supplier before
shipment
of goods, c)Working capital finance to enable the exporter to procure material for export,***
75. Post Shipment Credit refers to: a) Financing the shipping companies, b)Credit posted after
shipping
the goods, c)Working capital finance from the time of export to the time of actual***
realization of dues , d) Loans and Advances against documents covering shipment of goods.
77. The Make in India Programme is focusing on sectors of the economy for job creation and skill
79. As per 4th NSSO survey, extent of financial exclusion in MSME sector is around
80. Under the Revised RBI Guidelines on Priority Sector Lending,the sub-target for lending to
micro
81. Which one of the following is not a characteristic of a successful cluster? : a) Inter-firm
cooperation
82. Which one of the following approaches is not applicable in respect of MSMEs? a) Work
together
b)Produce together goods and services, c) Share benefits individually **d)Come together
83. Which one of the following steps is not involved for launching a Cluster Development
project?
84. UNIDO Projects evolve following various steps for promoting networking and development.
i) Mapping the competitiveness, ii)Assisting the cluster's actors for efficient supply chain
management
Capacity building , iii) Providing advisory services, iv) Setting special financial institutions for
SMEs
a) (i), (iii), (iv), (v) is correct, b)(ii), (iii), (iv), (i) is correct**
c) (iii), (v), (iv), (ii) is correct, d) (v), (i), (ii), (iv) is correct
85. UNIDO stands for : a)United Nations Institution Development Organisation
87. Viability should be examined and approved by: a)State level Inter-institutional Committee, b)
The
Industries
88. OTS scheme refers to : a)Sanctioning of ad hoc limits to the Sick Units, b) Settlement of all
outstanding dues as on a specified date as agreed to between the Bank and the Borrower,***
90.. Securitization means: (Tick appropriately) : a) Pooling of financial assets for forming into a
scrip for sale in a financial market, *b) Pooling of loans of a single borrower, c) Converting loans
to
91. Which one of the following features of Microfinance is incorrect? : a) Borrowers are from low
income group, b)Long duration loans, ***c)Loans without collaterals, d) High frequency of
repayment
92. Relationship banking allows several special contractual features as under:- i) Discretion
,ii)Flexibility
iii) Inclusion of collateral requirements, iv) Decision, v) Use of covenants
a) (i), (ii), (iii) (iv) is correct , b)(ii), (iii), (iv), (v) is correct
c) (v), (iii), (i), (ii) is correct, ***d) (iv), (v), (iii), (i) is correct
93. Which one of the following grey areas of concern for growth is not related to Microfinance
sector?
95. SMEs are facing various challenges under WTO regime as under:- i) Technology, ii) Removal of
Quantitative Restrictions, iii) Funding through FDI/JVs, iv) Infrastructure, v)Quality of goods
a) (ii), (i), (v), (iv) is correct,** b) (i), (iii), (v), (ii) is correct, c)(iii), (v), (iv), (i) is correct
96 National Bank is maintaining a current account of a Public Trust with 4 trustees. Bank receives
an
information that two of them have died in a road accident while going for a pilgrimage. The
remaining
a bank would permit them to operate the account as they are now the surviving trustees
b bank will refuse the operations as the power was vested with all of them
c bank will examine the trust deed to determine the future course of action
account they will be allowed. Otherwise the bank would insist on a direction from a competent
court
e c and d both***
97. The Secretary of Seth Chanan Mal Public Trust, a reputed trust having 3 Trustees, has
approached
you to open a saving bank account in favour of the Trust. While going through the Trust Deed
submitted alongwith the application you find that there is no provision for operation of the bank
b operation in the account will be allowed jointly with the Chairman of the Trust
c operation can be allowed against the joint signatures of all the Trustees***
98. Ramesh and Ashok are trustees of a trust and execute a power of attorney in favour of Tarun.
Trust deed is silent regarding the delegation of power. Tarun comes to operate the account:
99. Universal Bank is having a current account of Dhara Charitable Trust which is operated by
their
two trustees. In road accidents, both the trustees expire and this fact comes to the notice of the
bank.
What precautions should be taken by the bank for future operations in the account?
a the beneficiaries will have to appoint another trustee and on the basis of their resolution the
d the beneficiaries will be told to approach a court for appointment of new trustee in case the
current account would be operated by two out the three trustees, as the Td trustee is
proceeding abroad. The
account is presently operated by all the three in terms of the trust deed.
a the bank will accept the resolution and the request and permit the remaining trustee to
operate the
b the bank will not accept the resolution since the Trust Deed provides for operation of
c the bank will not accept the resolution and will suggest for power of attorney to be given by
the third
trustee.
d the bank will allow operations, since they are working as agents. e none of the above
101 A partnership firm with three partners, named M/s Durani Brothers opened a current
account with
Corporate Bank with the operational instruction that 151 two partners will operate the account.
The firm
received a cheque in its favour and in order to meet the urgent payment requirement, on behalf
of M/s
Durani Brothers, the 3Ni partner endorsed the same in favour of another firm M/s Shivani
Cables, from
whom the raw material was purchased:- a Shivani Cables will become holder in due course if it
is not known to them that the 3rd partners has no authority to endorse, b Shivani Cables will not
become holder in due course if they know that only 1st and 2nd partner have authority to
operate the
bank account, c Shivani Cables's title will remain doubtful in all circumstances, d a and b,
e a to c***
102 Universal Bank has granted cash credit limit of Rs:10 lac to M/s Kale Traders, a partnership
firm. The account is showing a debit balance of Rs.9.50 lac when the notice is received about the
insolvency of one of the partners. Which among the following steps should be initiated by the
bank to
safeguard its interest? a account should be recalled and party be asked to adjust the
obtained from all the partners, c operations in the account to be stopped and notice of
demand to be issued on the remaining partners, d notice about the outstanding dues
to be sent to the official assignee in whom the estate of the insolvent partner has been vested,
e c and d above**
103 Your branch maintains a current account in the name of M/s Site Ram Gita Ram & Sons. A
new
partner, the younger son of Mr. Gita Ram joins the firm and bank gets information about this
development. Which among the following actions would be more appropriate to deal with this
account:- A operations in the account should be stopped failing which the rule in Clayton case
can
apply, B account should be closed and new account should be opened observing all formalities
C new partner can be admitted with the approval of the bank only. Hence the firm should be
advised
to obtained permission from the bank, d bank can obtain new partnership declaration
letter and allow operations as per new mandate, **e bank can insist on for new partnership
104 Two partners of a partnership firm M/s Hyderabad Trading Company with three partners,
approaches you to open a current account with initial deposit of Rs.10 lac and promise that the
signatures on the account opening, form shall be obtained on the return of 3rd partner from
abroad,
although the said partner is not to actively engage himself in the business and he will function as
a
dormant partner. They also do not have any partnership deed in writing.
A the bank will open the account as the 3rd partner is not to operate the account
B the bank will open the account and will not permit any withdrawaltill the 3rd partner signs the
account
opening form C the account will be opened but cheque book will be given when the 3rd partner
returns,
D the account will not be opened unless all the partners have signed, E none of the above**
105 Capital Bank maintains a current account of M/s Bihari Lal Sham Lai with the same name
partners having operating instructions as 'any one can operate'. Mr. Sham Lai informs the bank
that
due to some dispute amongst the partners, the cheques signed by Mr. Bihari Lal should not be
paid
as he has acquired the whole share from Mr. Bihari Lal and is shortly introducing another
partner.
Meanwhile a cheque signed by Mr. Sham Lal is presented for payment. What should the bank
do?
A The operations in the account will be stopped and the mandate for operation of the
account by any one, shall become inoperative, ***B The operations in the account will be
stopped
only after receipt of the notice from both of them. C The cheque signed by Mr. Sham Lal shall be
passed since he has acquired the whole share now, D The partners will be advised to sort out the
issue
2. Priority sector classification (esp foreign banks less than 20 branches etc)
14. Federation of msme for West Bengal state? ITCOT located in which state? MSME council
located? Msme as per constitution is state/central/concurrent subject
1. A Small Manufacturing Enterprise unit is considered as Sick Industrial Unit: when account
remains sub
standard for more than six months or there is erosion in the net worth due to accumulated cash
losses to
the extent of 50% or more of its net worth during the previous accounting year and the unit has
been in
2. A small scale unit (manufacturing) can be treated as micro unit if the original investment in
plant and
3. A unit in service enterprise is considered as medium if the investment in equipment is: more
than Rs 2
: Rs.200 lac
6. As per Micro, small and medium enterprise development Act 2006, a small manufacturing
enterprise is
one in which original investment in plant and machinery is: more than Rs 25 lakh and up to Rs 5
crore.
7. As per RBI guidelines, banks are required to provide__% of advance to small enterprises to
units in
which original investment in plant & machinery does not exceed Rs 10 lac in the case of
manufacturing
units and does not exceed Rs 4 lac in equipment in the case of service enterprises: 40%
8. As per RBI guidelines, Loans to Agro and food processing Units are eligible to be classified
under
Agriculture Ancillary Activity under Agril. Finance Priority Per borrower Rs. 100.00 crores.
9. Bank limit for working capital based on turn over method: 20% of the projected sales turnover
10. Banks are required to make 40% of advance to Micro and Small enterprises to manufacturing
units
criteria (earlier Rs 4 lakh) and now Micro has to reach 7.00% by March 2016 & 7.5% by March
11. Banks will not obtain collateral security in respect of loans to micro and small enterprises
which are
covered by Credit Guarantee Scheme for Micro and Small enterprises?: Rs 1 crore
12. CGTMSE fee: For North East & women; Loan up to Rs 5 lakh – 0.75% p.a.; Loan more than
13. Composite loan limit for Small Manufacturing enterprises: Rs.1.00 crore
14. For being defined as Medium enterprise, the original investment in plant & machinery
should be: More
15. For being eligible to be classified as small (service) enterprise, the original investment in
equipment
16. Full form of CGTSME: Credit Guarantee Fund Trust for Micro & Small Enterprises.
17. If a small enterprise in manufacturing has a good track record, collateral security can be
waived up
18. If an MSME units holds a margin of Rs.20 lac and its projected sales are Rs.400 lac, its
working
19. In case of advance granted to Micro and small enterprises, banks will not obtain collateral
security up
to: Rs 10 lakh
20. In case of advance to Micro and Small manufacturing enterprises, working capital limit by a
bank as
21. In case of loan guaranteed under CGTMSE, what is the extent of cover for loan upto 50 lac
granted to
22. In case of loan to micro and small enterprises guaranteed by CGTMSE, no collateral security
is
24. Maximum Guarantee coverage for loans guaranteed by CGTMSE if loan up to Rs 5 lakh: 85%
of the
25. Micro, Small and Medium Enterprises is under which Ministry: Ministry of Micro Small &
Medium
Enterprises.
26. SMERA stands for: Small & Medium Enterprises Rating Agency.
27. The definition of Micro and Small enterprise in the manufacturing Sector is based on
investment in :
28. Under CGFT scheme for MSE, for loans up to Rs 50 lac, 80% coverage is not available for:
SC/ST
29. What is the maximum amount of loan covered guarantee scheme of CGTMSE for loans made
to micro
30. What is the rate of guarantee fees charged under CGSMSE for loan of more than Rs 5 lac to a
MSME::
Debt Recovery Tribunals were established to facilitate the debt recovery involving banks and
other financial institutions with their customers. DRTs were set up after the passing of Recovery
of Debts due to Banks and Financial Institutions Act (RDBBFI), 1993. Appeals against orders
passed by DRTs lie before Debts Recovery Appellate Tribunal (DRAT). DRTs can take cases from
banks for disputed loans above Rs 10 Lakhs. At present, there are 33 DRTs and 5 DRATs
functioning at various parts of the country. In 2014, the government has created six new DRTs to
speed up loan related dispute settlement.
Compared to the ordinary court procedures, DRTs were able to handle large number of cases
with low delay during the initial phases. Though the DRTs have made impact on recovery front,
several issues related to their performance in the background of rising volume of NPAs have
appeared in later period. Inadequate infrastructure coupled with insufficient number of DRTs has
made them incompetent to handle the rising volume of disputes.
The leading issue related with debt recovery through DRTs is the slow process of resolution
(settling debts and finding end to defaults). Like several other debt recovery mechanisms, the
DRTs are slow to work out on pending disputes. Nearly 93000 cases are pending in front of all
the DRTs in the country at the end of 2016. The World Bank estimated that it took 4.3 years on
average in India to resolve insolvency under the old laws, more than twice as long as in China.
Similarly, the average recoveries were just 25.7 cents on the dollar in India. This is one of the
worst among the similar economies.
The number of DRTs are small given the increasing number of cases. –
The DRTs were not able to handle cases related to large borrowers.
To correct the situation, government has made several efforts. Major one is the amendment to
the RDBBFI Act 1993 in 2016. Similarly, the new Insolvency and Bankruptcy Code give powers to
DRTs to consider cases of Bankruptcy from individuals and unlimited liability partnerships.
Following are the main changes made to the RDBBFI Act in 2016 though the amendments are
yet to be enforced.
The amendment gives timelines for various steps in the adjudication process before the debt
recovery tribunals. Time limit for filing of written statements, passing of orders, appeals, etc.
have been reduced. The Act Empowers the Central Government to provide for uniform
procedural rules for the proceedings in the Debts Recovery Tribunals and Appellate Tribunals.
The amendment increases the retirement age of Presiding Officers of Debt Recovery Tribunals
from 62 years to 65 years and that of the Chairpersons of Appellate Tribunals from 65 years to 67
years. It also makes Presiding Officers and Chairpersons eligible for reappointment to their
positions.
The amendment allows banks to file cases in DRTs having jurisdiction over the area of bank
branch where the debt is pending, instead in the DRT which have jurisdiction over the
defendant’s area of residence or business.
Similarly, to reduce delays, the he cost on a borrower to delay recovery timelines through
protracted appeals and proceedings has been increased.
Borrowers will have to deposit at least 25% of the outstanding amounts with the debt recovery
appellate tribunal (DRAT) under the DRT Act to avail an appeal. Previously, this provision was
required only under the SARFAESI Act.