According to the ‘Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the ‘medium enterprises’ are those with investments in plant and machinery between ₹ 15 crore and ₹ 25 crore.
- 2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.
Which of the statements given above is/are correct?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC IAS – 2023
– Under the MSMED Act, 2006 (prior to the 2020 revision), Medium Enterprises were defined based on investment in Plant and Machinery/Equipment, with limits generally being > ₹5 crore and <= ₹10 crore for manufacturing, and > ₹2 crore and <= ₹5 crore for services. The range ₹15 crore to ₹25 crore does not match these official definitions. - All bank loans extended to Micro, Small, and Medium Enterprises (MSMEs) generally qualify as priority sector lending as per Reserve Bank of India (RBI) guidelines. This is a policy measure to ensure adequate credit flow to these sectors.