QA Series 21 - MSME Part 1

 

The Banking Tutor

Question Answer Series 2025

S No 21                                                                    11-07-2025

MSME – Part 01 

01. What is meant by Composite Criteria in the context of MSME Classification? 

In the context of MSME (Micro, Small, and Medium Enterprises) classification, Composite Criteria refers to the combined use of investment in plant and machinery or equipment and annual turnover to determine an enterprise's classification as micro, small, or medium. 

02. Whether same criteria is advised for Manufacturing Enterprises and Service Units ? 

Yes. Same criteria is advised for classification of units under MSME for both Manufacturing Units and Service Units. 

03. What is latest definition of a Micro Enterprise ? (2025) 

Micro Enterprise is one whose Investment in Plant and Machinery or Equipment is not more than Rs. 2.5 crore and Annual Turnover not more than Rs. 10 crore. 

04. What is the latest definition of Small Enterprise ? (2025) 

Small Enterprise is one whose Investment in Plant and Machinery or Equipment is not more than Rs. 25 crore and Annual Turnover not more than Rs. 100 crore. 

05. What is the latest definition of Medium Enterprise ? (2025) 

Medium Enterprise is one whose Investment in Plant and Machinery or Equipment is not more than Rs. 125 crore and Annual Turnover not more than Rs. 500 crore. 

06. What is the Target stipulated by Govt. to MSME Finance by Banks? 

No specific target for Industry or MSME. However, target is fixed for lending to Micro Enterprises @ 7.5 % of ANBC or CEOBSE, whichever is higher. 

07. What is JanSamarth Portal ? 

The JanSamarth portal is a digital platform launched by the Government of India to provide a single platform for accessing credit-linked government schemes.

08. What is UdyamiMitra Portal? 

The Udyamimitra portal, launched by the Small Industries Development Bank of India (SIDBI), is an online platform aimed at improving the accessibility of credit and handholding services for Micro, Small, and Medium Enterprises (MSMEs) in India. 

09. What is Udyam Registration Portal ? 

The Udyam Registration Portal, accessible at udyamregistration.gov.in, is the official government portal for registering Micro, Small and Medium Enterprises (MSMEs) in India. It is a fully digital and paperless platform that replaced the previous Udyog Aadhaar Memorandum (UAM) registration system in 2020. 

10. What is full form of CGTMSE ? 

The full form of CGTMSE is Credit Guarantee Fund Trust for Micro and Small Enterprises. 

11. What is SMILE in the context of MSMEs? 

SMILE stands for Support for Marginalized Individuals for Livelihood and Enterprise. It is an umbrella scheme operated by SIDBI, aimed at providing support to vulnerable sections of society, including those engaged in begging and transgender persons, to improve their livelihoods and facilitate their economic inclusion.

12. What is PSB59 ? 

“PSB LOANS IN 59 MINUTES” is a Digital Platform put into operation to apply and get “In-Principle Sanction” for Business Loans within 59 minutes without any physical contact with Bank Branch. 

13. Who is a Ready Borrower in the context of MSME? 

Based on the information available regarding the Stand-Up India scheme, a "Ready Borrower" refers to an individual who doesn't require any assistance or "handholding support" to initiate their loan application.

14. Who is a Trainee Borrower in the context of MSME? 

Based on the provided search results, the term "Trainee Borrower" primarily refers to individuals seeking financial assistance and handholding support under the Stand-Up India Scheme. 

15. What is PM Vishwakarma Scheme ? 

The PM Vishwakarma Scheme, launched by the Prime Minister of India on September 17, 2023, is a Central Sector Scheme under the Ministry of Micro, Small & Medium Enterprises. It aims to provide comprehensive support to traditional artisans and crafts people. 

16. What is PM SVANidhi ? 

he PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme is a micro-credit facility launched by India's Ministry of Housing and Urban Affairs in June 2020 to provide affordable loans to street vendors. 

17. What is ECLGS in the context of MSMEs? 

Emergency Credit Line Guarantee Scheme (ECLGS) provides collateral-free automatic loans to businesses, including MSMEs, to help them meet operational liabilities and resume business activities. The initial limit of Rs. 3 lakh crore was subsequently increased to Rs. 5 lakh crore. 

18. What is Assistance to Training Institutions (ATI) Scheme ? 

Assistance to Training Institutions (ATI) Scheme provides financial support to training institutions, including those under the Ministry of MSME, for infrastructure development and entrepreneurship training programs. 

19. What is Champions in the context of MSME ? 

The MSME Champions Scheme is a comprehensive initiative launched by the Ministry of Micro, Small & Medium Enterprises (MSME) in India to enhance the competitiveness and promote the growth of Micro, Small, and Medium Enterprises. The scheme's full name is "Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength" 

20. What is SRI Fund ? 

Self Reliant India (SRI) Fund provides equity infusion to MSMEs with growth potential. The government has allocated Rs. 50,000 crore for this purpose. 

21. What is PMKVY 4.0 ? 

Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0 focuses on skill development and vocational training for youth, enabling them to enter the workforce with relevant skills. 

22. What is NMCP ? 

National Manufacturing Competitiveness Programme (NMCP) includes various sub-schemes like Credit Linked Capital Subsidy for Technology Upgradation (CLCSS) and Lean Manufacturing Competitiveness for MSMEs, aimed at improving the competitiveness of MSMEs. 

23. What is Stand Up India Scheme? 

The Stand-Up India scheme is a government initiative in India aimed at promoting entrepreneurship among women and Scheduled Castes (SC) and Scheduled Tribes (ST).

24. What is Start-up India Scheme? 

The Startup India Seed Fund Scheme (SISFS) is an initiative by the Government of India, launched by the Department for Promotion of Industry and Internal Trade (DPIIT) in 2021, to provide financial assistance to early-stage startups. 

25. What is Make in India Scheme ? 

The Make in India scheme is a flagship initiative launched by the Government of India on September 25, 2014, with the goal of establishing India as a global manufacturing and design hub. This is intended to be achieved through attracting investment, fostering innovation, developing infrastructure, and enhancing skill development. 

Next Issue  will be shared on 13^th   July 2025.

Sekhar Pariti

+91 9440641014

 

.