Frequently Asked Questions

PM Economic Package for MSME Sector

  1. Q.1 What are the measures announced by the government under “Atmanirbhar Bharat” for MSMEs?

    Ans : Keeping in view the hardship faced by MSMEs during COVID 19 pandemic crisis, the government has announced several measures intended to provide the necessary support to deal with the current economic crisis such as:
    • Rs 3 lakh crore Collateral-free Automatic Loans
    • Rs 20,000 crore Subordinate Debt for Stressed MSMEs
    • Rs 50,000 croreEquity infusion for MSMEs through Fund of Funds
    • Global tenders to be disallowed up to Rs 200 crore
    • Revised definition of MSMEs
    • All receivables of MSMEs will be cleared by Government and PSU in 45 days
    For more details, please visit the url: Click here for announcement details.
  2. Q.2 What is revised definition of MSMEs?

    Ans :
    Existing MSME Classification
    Criteria: Investment in Plant & Machinery or Equipment
    Classification Micro Small Medium
    Mfg. Enterprises Investment < Rs. 25 lakh. Investment < Rs. 5 cr. Investment < Rs. 10 cr.
    Services Investment < Rs. 10 lakh. Investment < Rs. 2 cr. Investment < Rs. 5 cr.
    Revised MSME Classification
    Composite Criteria: Investment and Annual Turnover
    Classification Micro Small Medium
    & Services
    Investment < Rs. 1 cr.
    Turnover < Rs.5 cr.
    Investment< Rs. 10 cr.
    Turnover < Rs.50 cr.
    Investment< Rs. 50 cr.
    Turnover < Rs.250 cr.
    Click here
  3. Finance

  4. Q.14 What relief measures RBI has taken for MSMEs during COVID-19 pandemic?

    Ans: To mitigate the impact on this vital sector, the Reserve Bank of India (RBI), Ministry of Finance, GoI has announced set of relief measures on March 27, 2020. A second set of measures was also announced on April 17, 2020. For more information on these measures, please visit the website of RBI: Click here
  5. Q.15 What is the Credit Guarantee Scheme for MSEs (CGTMSE)?

    Ans : The Ministry of MSME, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) with a view to facilitate flow of credit to the MSE sector without the need for collaterals / third party guarantees. The main objective of the scheme is that the lender should give importance to project viability and secure the credit facility purely on the primary security of the assets financed. The Credit Guarantee scheme (CGS) seeks to reassure the lender that, in the event of a MSE unit, which availed collateral - free credit facilities, failing to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 85 per cent of the outstanding amount in default.
    The CGTMSE would provide cover for credit facility up to Rs. 200 lakh which have been extended by lending institutions without any collateral security and /or third-party guarantees. A guarantee and annual service fee is charged by the CGTMSE to avail of the guarantee cover. For more details you may visit
  6. Q.16 What is Trade Receivables Discounting System (TReDS)?

    Ans : The objective of TReDS is to create Electronic Bill Factoring Exchanges which could electronically accept and settle bills so that MSMEs could encash their receivables without delay. This will not only give them greater access to finance but will also put greater discipline on corporates to pay their dues on time. For more details you may refer to RBI guidelines for setting up and operating TReDS on their website
  7. Q.17 Who are the participants in TReDS?

    Ans: Sellers, buyers and financiers are the participants on a TReDS platform.
  8. Q.18 Who can participate as a seller in TReDS?

    Ans: Only MSMEs can participate as sellers in TReDS.
  9. Q.19 Who can participate as a buyer in TReDS?

    Ans: Corporates, Government Departments, PSUs and any other entity can participate as buyers in TReDS.
  10. Q.20 Who can participate as a financier in TReDS?

    Ans: Banks, NBFC - Factors and other financial institutions as permitted by the Reserve Bank of India (RBI), can participate as financiers in TReDS.
  11. Q.21 How does TReDS work?

    Ans: Broadly, following steps take place during financing / discounting through TReDS:
    • Creation of a Factoring Unit (FU) - standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange - containing details of invoices / bills of exchange (evidencing sale of goods / services by the MSME sellers to the buyers) on TReDS platform by the MSME seller (in case of factoring) or the buyer (in case of reverse factoring);
    • Acceptance of the FU by the counterparty - buyer or the seller, as the case may be;
    • Bidding by financiers;
    • Selection of best bid by the seller or the buyer, as the case may be;
    • Payment made by the financier (of the selected bid) to the MSME seller at the agreed rate of financing / discounting;
    • Payment by the buyer to the financier on the due date.
  12. Q.22 What is a Factoring Unit (FU)?

    Ans: A Factoring Unit (FU) is a standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange. Each FU represents a confirmed obligation of the corporates or other buyers, including Government Departments and PSUs.
  13. Q.23 Who can create a FU?

    Ans: In TReDS, FU can be created either by the MSME seller or the buyer. If MSME seller creates it, the process is called factoring; if the same is created by corporates or other buyers, it is called as reverse factoring.
  14. Q.24 Whether TReDS could deal with reverse factoring?

    Ans: Yes. The TReDS could deal with both receivables factoring as well as reverse factoring.
  15. Q.25 Whether the MSME seller would have to pay to the financier in case the buyer defaults in repayment?

    Ans: No. The transactions processed under TReDS are “without recourse” to the MSMEs.
  16. Q.26 Whether any authorization is required to set up and operate a TReDS platform?

    Ans: Yes, authorization is required to be obtained from RBI under the Payment and Settlement Systems (PSS) Act, 2007.
  17. Q.27 What is the eligibility criteria for setting up and operating TReDS?

    Ans: Eligibility criteria for the purpose of setting up and operating a TReDS platform is provided in the guidelines (as amended from time to time) for TReDS issued by RBI. These guidelines are available at the following path: →“Payment and Settlement Systems” dropdown →“Guidelines”. RBI’s Press Release dated October 15, 2019 may also be read in this regard. The same can be accessed at the following web links: Click here and Click here
  18. Q.28 Where can I find the details of TReDS entities authorised by RBI?

    Ans:List of all authorized Payment System Operators (PSOs), including TReDS, is available at the following path: →“Payment and Settlement Systems” dropdown →“Information Useful to Customer”→“List of Authorised Entities – Payment System Operators”. Following is the web link for accessing the same: Click here
  19. Q.29 Whether TReDS entities undertake KYC (Know Your Customer) of participants?

    Ans:Yes. The KYC process adopted by the TReDS entities shall adhere to the “Master Direction – Know Your Customer (KYC) Direction, 2016” dated February 25, 2016 (as amended from time to time) issued by RBI.
  20. Q.30 What is a settlement file and who generates it in TReDS?

    Ans: A settlement file provides information as to how much amount has to be debited from and credited to the accounts of participants (sellers, buyers and financiers), due on a date / time. In other words, it indicates how much a financier has to pay to an MSME seller, and how much a buyer owes to the financier on a date / time. The TReDS entities generate the settlement file and send the same to existing payment systems (for instance, National Automated Clearing House) for actual payment of funds.
  21. Q.31 Whether defaults on TReDS platform are the responsibility of TReDS entities?

    Ans : No. Default handling is outside the purview of TReDS platforms.
  22. Q.32 What is the definition of a sickunit?

    Ans : As per the extant guidelines, a Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if – Any of the borrower account of the enterprise remains NPA for three months or more OR There is erosion in the net worth due to accumulated losses to the extent of 50% of its net worth during the previous accounting year. This criterion enables banks to detect sickness at an early stage and facilitate corrective action for revival of the unit.
  23. Q.33 Are all sick units put under rehabilitation bybanks?

    Ans: No. If a sick unit is found potentially viable it can be rehabilitated by the banks. The viability of the unit is decided by banks. A unit should be declared unviable only if such a status is evidenced by a viability study.
  24. Government E-Marketplace

  25. Q.34 Is there any specific initiative that has been taken by GeM in terms of Public Procurement?

    Ans: GeM has taken number of initiatives for procurement of goods and services by Government departments in the fight against COVID-19 Pandemic. A dedicated page for COVID-19 has been created on the portal. You can find more information by visiting this link-
  26. Q.35 What are pre-requisite for primary user registration?

    Ans: The prerequisites for primary user registration are:
    1. Aadhaar number of the user.
    2. Mobile number which is linked with Aadhaar.
    3. Email ids hosted by NIC, only NIC registered Email ids are allowed, this would facilitate users from all 1600+ domains to freely register and transact on GeM.
    4. Verifying authority details such as name, mobile number and NIC registered email id.
    Note: In case the user does not have an email id which is hosted by NIC s/he would be directed to open GeM buyer id email.
  27. Q.36 Is Aadhaar card mandatory for primary user registration?

    Ans: Yes, Aadhaar is mandatory for primary user registration. Note: Aadhaar details collected by GeM are solely for user verification.
  28. Q.37 What are the key tasks of a primary user?

    Ans: The key tasks of a primary user are:
    Filling organization details
    Creation/modifications of secondary users
    Monitoring of orders placed
    Administration of GeM procurements
    In case the primary user gets transferred or retires from the organization, he/she needs to transfer the primary user account
  29. Q.38 How can a user verify his/her email id during registration?

    Ans: You must have a NIC registered email id to register, upon entering the NIC registered email id like etc. during registration, the email will be verified by NIC. On successful validation by NIC, the user will get an email message with a one-time password for continuing with the registration process.
  30. Income tax

  31. Q.39 What measures Government has taken towards refund of pending income-tax of all business entities and individuals?

    Ans: In the context of the COVID-19 situation and with a view to provide immediate relief to the business entities and individuals, it has been decided to issue all the pending income-tax refunds up to Rs. 5 lakhs, immediately. For more information, please refer to the website of Ministry of Finance or visit Click here
  32. Q.40 What is the progress of IT refunds to MSMEs during the COVID – 19 lockdown?

    Ans:The Central Board of Direct Taxes (CBDT) highlighted on 17.04.2020 that Income tax refunds to nearly 8.2 lakh small businesses (proprietors, firms, corporate and trusts) worth Rs 5,204 Crore have been issued since 8th April 2020. These income tax refunds would help MSMEs to carry on their business activities without pay cuts and layoffs in Covid-19 pandemic situations. Details can be found at Click here
  33. Goods and Services Tax

  34. Q.41 What measures have been taken towards filling of income tax returns considering COVID-19 situation?

    Ans : The Union Finance & Corporate Affairs Minister has announced several important relief measures taken by the Government of India in view of COVID-19 outbreak, especially on statutory and regulatory compliance matters related to several sectors. Following measures has been taken w.r.t GST:
    1. Those having aggregate annual turnover less than Rs. 5 Crore Last date can file GSTR-3B due in March, April and May 2020 by the last week of June 2020. No interest, late fee, and penalty to be charged.
    2. Others can file returns due in March, April and May 2020 by last week of June 2020 but the same would attract reduced rate of interest @9 % per annum from 15 days after due date (current interest rate is 18 % per annum). No late fee and penalty to be charged, if complied before till 30th June 2020.
    3. Date for opting for composition scheme is extended till the last week of June 2020. Further, the last date for making payments for the quarter ending 31st March 2020 and filing of return for 2019-20 by the composition dealers will be extended till the last week of June 2020.
    4. Date for filing GST annual returns of FY 18-19, which is due on 31st March 2020 is extended till the last week of June 2020.
    5. Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents, time limit for any compliance under the GST laws where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.
    6. Necessary legal circulars and legislative amendments to give effect to the aforesaid GST relief shall follow with the approval of GST Council.
    7. Payment date under Sabka Vishwas Scheme shall be extended to 30th June 2020. No interest for this period shall be charged if paid by 30th June 2020.
    8. The taxpayers who are already in composition scheme, in previous fiscal year are not required to opt in for composition again for FY 2020-2021.
    9. E-way bills (EWB), whose expiry date lies between 20th March 2020, and 15th April 2020, would also be deemed to be valid till 30th April, 2020.
    For regular updates and more information, you may refer the website of Ministry of Finance and Corporate Affairs or visit Click here
  35. Q.42 On what supply is GST levied?

    Ans : GST is levied on all types of supplies which are – (i) made for a consideration and (ii) are for the purpose of furtherance of business. There are some exceptions when these conditions are not met, yet supply is considered to have been made, for example, interstate stock transfer of goods even without consideration or importation of services even if not in the furtherance of business.
  36. Q.43 Will GST be levied on all goods or services or both?

    Ans: No, GST will not be levied on alcohol for human consumption. GST on Crude, Motor Spirit (Petrol), High Speed Diesel, Aviation Turbine Fuel and Natural Gas will be levied with effect from a datetobedecidedbytheGSTCouncil.Electricityandsaleoflandandbuildingareexemptedfrom levy of GST. Securities are neither good nor services for the purposes of the WBGST Act, 2017 and therefore supply of securities is not taxable.
  37. Q.44 I was registered under VAT but not under Central Excise. Do I need to apply for new registration?

    Ans: No. Existing registrants of VAT having valid PAN have been issued Provisional ID and password. If you have not received provisional ID, please contact your tax administration to obtain the same. This Provisional Identity Number (PID) would eventually be your GSTIN, when the migration process is completed.
  38. Q.45 If I have obtained provisional GSTIN (PID), can I use the same on the invoice to make supply without waiting for final GSTIN?

    Ans: Provisional GSTIN (PID) would eventually be your final GSTIN. The number would remain the same. Yes, you can use this PID on invoice for making supply without waiting for final GSTIN.
  39. Q.46 How will taxpayer get the certificate of registration?

    Ans: The taxpayer can himself download the certificate of registration online from the GST common portal (
  40. Q.47 Are all manufacturers necessarily required to be registered under GST?

    Ans: No, there is no provision requiring that a manufacturer irrespective of threshold or nature of supply to register himself under GST. For example, a manufacturer dealing only in exempted goods or where his turnover is only intra-State and below Rs. 20 lakh is not required to be registered.
  41. Q.48 In case of supply of exempt goods or when tax is paid under Composition Scheme, is the registered person required to issue a tax invoice? How a bill of supply is different from a tax invoice?

    Ans: No. In such cases, the registered person shall issue a Bill of Supply and not a tax invoice. The bill of supply is different from a tax invoice both in name and details contained. While most of the details to be provided in a bill of supply are similar to tax invoice, the bill of supply does not contain the rate of tax and the amount of tax charged as the same cannot be collected.
  42. Q.49 If goods are transported in semi-knocked down condition, when shall the complete invoice be issued?

    Ans: When goods are transported in semi-knocked down condition, the complete invoice shall be issued before dispatch of the first consignment. Delivery challan shall be issued for subsequent consignments. Original copy of invoice shall be sent along with the last consignment.
  43. Q.50 Is there any scheme for payment of taxes under GST for small traders and manufacturers?

    Ans: Yes. Composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs. 75 lakhs (Rs.50 lakhs for special category States, excluding J&K and Uttarakhand). It is a kind of turnover tax. The objective of the scheme is to provide a simplified tax payment regime for the small taxpayers. The scheme is optional and is mainly for small traders, manufacturers and restaurants.
  44. Labour and Employment

  45. Q.51 What are benefits being offered under Pradhan Mantri Garib Kalyan Yojana (PMGKY)?

    Ans : Ministry of Labour & Employment has launched Pradhan Mantri Garib Kalyan Yojana (PMGKY) for the poor to help them fight the battle against Corona Virus Pandemic. Under the scheme, the entire employees EPF contributions (12% of wages) and employers’ EPF & EPS contribution (12% of wages), totaling 24% of the monthly wages for the next three months shall be directly paid by the Central Govt. in the EPF accounts (UAN) of employees, who are already members of EPF Scheme, 1952. For more information on the schemes, please refer the scheme guidelines at Click here
  46. Q.52 Can you please elaborate on provisions made by Ministry of Labour & Employment with respect to Provident Fund?

    Ans: The Ministry of Labour and Employment has been receiving several queries related to provident funds from the beneficiaries. In this regard, a set of Frequently Asked Questions (FAQs) along with clarifications are provided at Click here . for better understanding.
  47. Q.53 Can my employee withdraw advance from EPF to meet financial requirement during COVID-19 pandemic?

    Ans: As per the government announcement on March 26, 2020, an individual can withdraw a certain amount from their Employees' Provident Fund (EPF) account, if he/she is facing financial problems due to the coronavirus-related lockdown. Further details can be found at: Click here
  48. Transport and Movement of Essential Goods

  49. Q.54 How can I apply for Curfew/Movement/Emergency Pass during COVID-19 lockdown?

    Ans: To regulate the movement of goods and people during the COVID-19 lockdown period, advisory has been issued by many State Governments to procure 'curfew/e-passes' for vehicles and individuals. More details can be found at the respective websites of your states.
  50. Q.55 What all special provisions have been made for transportation of commodities during COVID -19 situation?

    Ans: For nationwide transportation of essential commodities and other goods, Ministry of Railways has introduced unhindered services of Special Parcel Trains. The details of Parcel Special Trains can be found at
  51. Q.56 Are there any guidelines available for movement of trucks/tankers carrying essential commodities from UT of J&K to Ladakh?

    Ans: Standard Operating Procedures (SOPs) for movement of trucks/tankers carrying essential commodities from UT of J&K to Ladakh issued by the Office of the Divisional Commissioner, Ladakh can be found at Click here
  52. Industrial Regulations

  53. Q.57 In view of COVID-19 outbreak, what measures have been taken with respect to statutory and regularity compliances?

    Ans: Finance Minister announces several relief measures relating to Statutory and Regulatory compliance matters across Sectors in view of COVID-19 outbreak including:
    1. No Late Fees on any Filings made from 1st April 2020 to 30th September 2020 (irrespective of the due date of the filing)
    2. Maximum Interval between two board meetings shall be extended by 60 days for the next two quarters. (Up to 30th September 2020).
    3. Newly incorporated companies are required to file a declaration for Commencement of Business within 6 months of incorporation. An additional time of 6 more months shall be allowed.
    4. Every Company is required to have at least one resident director. Such a requirement has been relaxed (Until further notice)
    For more information on the measures taken, please visit the website of Ministry of Corporate Affairs or visit Click here
  54. Skill Development

  55. Q.58 What is the support available for SkillDevelopment?

    Ans: The Ministry conducts various types of training programme through its various organizations for self-employment as well as wage employment. The training programmes are primarily focused to promote self-employment in the country. Thus, all type of programmes have input which provide necessary information and skills to a trainee to enable him to establish his own micro or a small enterprise. The programmes include two-week Entrepreneurship Development Programme (EDP), Six Week Entrepreneurship Skill Development Programme (ESDP). One weak Management Development Programme (MDP), One Day Industrial Motivation Campaign (IMC) etc. For Monitoring of the programme a web-based system has been developed where coordinator of the programme is bound to feed all details of trainees including his photo and phone no. on the website. The same will be linked to the call center of Ministry where real time feedback is obtained from trainees. For further details please visit .
  56. Q.59 What support is provided by the Ministry for assisting traininginstitutions?

    Ans: The Ministry is implementing the Assisting to Training Institutions Scheme which envisages financial assistance for establishment of new institutions (EDIs), strengthening the infrastructure of the existing EDIs and for supporting entrepreneurship and skill development activities. The main objectives of the scheme are development of indigenous entrepreneurship from all walks of life for developing new micro and small enterprises, enlarging the entrepreneurial base and encouraging self-employment in rural as well as urban areas, by providing training to first generation entrepreneurs and assisting them in setting up of enterprises. The assistance shall be provided to these training institutions in the form of capital grant for creation/strengthening of infrastructure and programme support for conducting entrepreneurship development and skill development programmes.
  57. MSME Schemes

  58. Q.60 What benefits do the MSME Technology Centres of Ministry of MSME provide to MSMEs?

    Ans : MSME Technology Centres are equipped with state-of-the-art machinery & equipment. They are engaged in designing and manufacturing of quality tools, which are necessary for producing quality products and improve the competitiveness of MSMEs in national and international markets. They also conduct training programmes to provide skilled manpower to industries specially MSMEs. The placement of trainees trained in Tool Room is more than 90%. There are 18 Technology Centres under DC (MSME), a list of MSME Technology Centres and their details is available in the website .
  59. Q.61 What support is provided by the Ministry for improving manufacturing competitiveness?

    Ans : To enhance the competitiveness amongst the MSMEs, there are six components for capacity building, technology upgradation, design interventions, products, IP rights to improve the productivity and handhold to deliver top quality productivity using lean technologies, to nurture ideas from professional beyond the traditional and to make MSME digitally powered under the umbrella program of Credit linked Capital subsidy Scheme and Technology Upgradation (CLS-TUS)
    1. Lean Manufacturing Competitiveness Scheme for MSMEs: Financial assistance up to Rs. 36 lakh(Max. per mini cluster of 10 units, minimum 4 units for a period 10 months or till the completion)
    2. Zero Defect and Zero Effect: Reimbursement for obtaining National and International standard certification
    3. Digital MSME: Assistance is being provided for business solution software i.e ERP, etc. though e-platforms
    4. Intellectual Property Rights: Reimbursement for registration of patent, trade mark, geographical indication (GI) are:
      • Domestic Patent: up to Rs. 1 lakh
      • Foreign Patent: up to TRs. 5 lakh
      • GI Registration: up to Rs. 2 lakh
      • Trademark: up to 0.10 lakh
      Financial support up to 1.00 Cr. for setting up IP facilitation centres for a period of 5years.
    5. Design Expertise to Manufacturing MSME Sector: Financial assistance to MSMEs for engagement of design consultants for design interventions (for the project range Rs. 15 lakhto Rs. 40 lakh)
      Financial assistance of Rs. 1.5 lakh for final year student project done for MSMEs
    6. Support for Entrepreneurs and Managerial Development of MSMEs through incubators: Financial support for untiring for developing of idea: maximum up to Rs. 15.00 lakh Details may be seen at
    The applicant may apply through online portal .
  60. Q.62 Whether there is any scheme for assisting MSMEs for Intellectual Property Rights?

    Ans: Under the National Manufacturing Competitiveness Programme (NMCP) to enhance the competitiveness of the SMEs sector, O/o DC (MSME) is implementing a scheme “Building Awareness on Intellectual Property Rights (IPR)” for the MSME. The objective of the scheme is to enhance awareness of MSME about Intellectual Property Rights (IPRs) to take measure for the protecting their ideas and business strategies Accordingly, to enable the MSME sector to face the present challenges of liberalization, various activities on IPR are being implemented under this scheme. For further details please visit .
  61. Q.63 What is CLCSS?

    Ans: Credit Linked Capital Subsidy Scheme (CLCSS) is for technology upgradation of Micro and Small enterprises (MSEs) in the country.
  62. Q.64 Whether the CLCSS is in operation at present?

    Ans: The scheme is continued w.e.f.01.04.2017 and implemented as per pre-revised guidelines, the revised guidelines will be effective from 13.08.2019 and its amendments from time to time, the present validity of the CLCS Component of CLCSTU scheme is extended up to 31st March 2020. For more details please visit on the URL:
  63. Q.65 When CLCSS was launched?

    Ans: The Scheme was launched in the financial year 2000-2001.
  64. Q.66 What were the salient features of the CLCSS?

    Ans: Under the scheme, 15 per cent capital subsidy, limited to maximum of Rs 15 lakh is provided to the eligible MSEs for upgrading their technology with the well-established and improved technology as approved under the scheme.
  65. Q.67 How many products/ sub-sectors have been approved under the CLCSS?

    Ans: 51 products/sub-sectors have been approved under the CLCSS till date.
  66. Q.68 How can I get benefit under the Scheme?

    Ans: If you are an MSE manufacturing a product and want to upgrade the technology of manufacturing the product with the well-established and improved technology as approved under the Scheme, the unit can approach to the nodal Banks/Agencies /Eligible financial institution for sanction of term loan for purchase of eligible machinery. The financial institutions /nodal banks/agency will sanction & recommend the subsidy eligible applicant to this office. To know more about this scheme, please follow the link .
  67. Q.69 Which are the Nodal Agencies for implementation of CLCSS?

    Ans: Small Industries Development Bank of India (SIDBI), National Bank for Agriculture and Rural Development (NABARD), Canara Bank, Bank of Baroda, Bank of India, The Tamilnadu Industrial Investment Corporation Limited, Chennai (TIICL), Andhra Bank, State Bank of India, Punjab National Bank, Corporation Bank and Indian Bank are the nodal Bank/Agencies for implementation of the CLCSS. Contact details for Nodal Banks/Agencies are available on the official website of this office link i.e.
  68. Q.71 Is CLCSS applicable for medium and large-scale Enterprises?

    Ans : No, till date only Micro and Small-Scale Enterprises (MSEs) (existing & new) are eligible under CLCSS.
  69. Q.72 What are new steps will have been taken by the Ministry for effective implementation of CLCSS?

    Ans: Management Information System (MIS) is being developed for online submission of application.
  70. Q.74 What is the mechanism for disbursement of subsidy to the unit?

    Ans: Subsidy is being released to the concerned Nodal bank/agency and subsidy is to be kept in the form of Term Deposit Receipt (TDR) for 3 years by bank after release by Office of DC (MSME) in the concerned unit account and interest amount on the term loan should be reduced accordingly. The beneficiary unit shall remain in commercial production for a period of at least three years after installation of eligible plant & machinery on which subsidy under CLCSS has been availed. If the unit fulfils the condition, the TDR will be transferred to unit's account after three years. Further, it is to clarify that there are two different conditions one is about the commercial production for a period of at least three years after installation of the eligible plant machinery on which subsidy under CLCSS has been availed and another is that Subsidy is to be kept in the form of TDR for 3 years. These two conditions and other conditions stipulated in the extant guidelines are to be fulfilled by the beneficiary/PLIs before release of subsidy in the beneficiary’s account.
  71. Q.75 What are the objectives of Procurement and Marketing Support scheme?

    Ans: Procurement and Marketing Support scheme has following objectives:
    • To promote new market access initiatives like organizing / participation in National /International Trade Fairs / Exhibitions I MSME Expo etc.
    • To create awareness and educate the MSMEs on topics relevant for market access development.
    • To create more awareness about trade fairs, digital advertising, e-marketing, GST, GEM portal, Public Procurement policy and other related topics etc.
    For more details:
  72. Q.76 What are the eligibility criteria of the PMS scheme?

    Ans: Any Individual Manufacturing/Service MSEs registered at Udyog Aadhar Memorandum (UAM) portal.
  73. Q.77 Who is the implementing agency for the scheme?

    Ans: The implementing agencies are:
    • Office of DC MSME through its field organizations namely MSME Development Institutes and Technology Centers.
    • Other field organizations of Ministry of MSME namely NSIC, KVIC, Coir Board.
    • State Governments through its department’s /organizations/ corporations/ autonomous bodies and agencies.
    • Other central Govt. Ministries through its departments /organizations / corporations /autonomous bodies and agencies.
  74. Q.79 What are the components of the PMS schemes?

    Ans: The components of the PMS scheme are mentioned below:
    S. No. Scheme Components
    A. Participation of individual MSEs in domestic trade fairs/ exhibitions
    B. Organizing Domestic Trade Fairs/ Exhibition and participation in trade fairs / exhibitions by the Ministry / Office of DC (MSME) / Government organizations
    C. Capacity building of MSMEsin modern packaging technique
    D. Development of Marketing Haats
    E. Vendor Development Programmes
    F. International/National Workshops/Seminars
    G. Awareness Programs

    Under each scheme component, eligible items and the scale of assistance are defined. It can be accessed at:
  75. Q.80 What support is provided by the Ministry for participation of MSMEs in international events?

    Ans : Under the International Cooperation Scheme, financial assistance is provided on reimbursement basis to the State/Central Government organizations, industries/enterprises Associations and registered societies/trusts and organizations associated with MSME for deputation of MSME business delegation to other countries for exploring new areas of MSMEs, participation by Indian MSMEs in international exhibitions, trade fairs, buyer seller meet and for holding international conference and seminars which are in the interest of MSME sectors. Eligible beneficiary organizations can apply to the Ministry directly to avail the assistance under IC Scheme as per Scheme Guidelines. For further details please visit .
  76. Q.81 Who can apply under this scheme

    Ans : Government Institutions and Registered Industry Associations associated with promotion and development of MSME sector.
  77. Q.82 How to apply under this scheme?

    Ans: Applications for financial assistance can be sent in the prescribed form to the Director (International Cooperation), Ministry of MSME, Udyog Bhawan, New Delhi-110011. The detailed guidelines of International Cooperation Scheme including application form and claim form are available on the website of the Ministry namely .
  78. Q.83 What is Cluster?

    Ans: A cluster is a group of enterprises located within an identifiable and as far as practicable, contiguous area or a value chain that goes beyond a geographical area and producing same/similar products/complementary products/services, which can be linked together by common physical infrastructure facilities that help address their common challenges. The essential characteristics of enterprises in a cluster are (a) Similarity or complementarity in the methods of production, quality control & testing, energy consumption, pollution control, etc., (b) Similar level of technology & marketing strategies/practices, (c) Similar channels for communication among the members of the cluster, (d) Common market & skill needs and/or (e) Common challenges & opportunities that the cluster faces.
  79. Q.84 What is MSE-CDP?

    Ans: Micro & Small Enterprises - Cluster Development Programme (MSE-CDP), MSE-CDP approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country.
  80. Q.85 What are the objectives of MSE-CDP?

    Ans: Following are objectives offset-CDP:
    1. To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills & quality, market access, etc.
    2. To build capacity of MSEs for common supportive action through formation of self-help groups, consortia, upgradation of associations, etc.
    3. To create/upgrade infrastructural facilities in the new/existing Industrial Areas/Clusters of MSEs.
    4. To set up Common Facility Centers (for testing, training, raw material depot, effluent treatment, complementing production processes, etc.).
    5. Promotion of green & sustainable manufacturing technology for the clusters to enable units switch to sustainable and green production processes and products.
  81. Q.86 Which are the components covered under MSE-CDP?

    Ans: Following are the components for which GoI assistance is provided under MSE-CDP:
    1. Setting up of Common Facility Centers (Common Production/Processing Centre, Design Centre, Testing Centre etc.).
    2. Creation/upgradation of infrastructural facilities in the new/existing industrial areas/ clusters of MSEs.
    3. Establishing Marketing Hubs/Exhibition Centers at central places for display and sale of products of Micro and Small Enterprises.
    4. Implementation of Thematic Interventions in approved/completed CFCs for following activities:
      • Training Programs
      • Exposure Visits.
      • Strengthening the Business Development Service (BDS) provision through a panel of service providers.
      • Any other activity related to creating business eco-system in clusters
    5. Support to State Innovative Cluster Development Programme, this component would provide co-funding of the CFC projects of State Cluster Development Programme on matching share basis.
    For further details please visit .
  82. Public Procurement Policy

  83. Q.87 What is the share of procurement from MSEs out of the total procurement made by Central Government Ministries / Departments / Public Sector Undertakings?

    Ans: Under amended Public Procurement Policy for MSEs, order 2012 a minimum 25 per cent share out of the total procurement by Central Government Ministries / Departments /Central Public Sector Undertakings are to be made from MSEs.
  84. Q.88 Whether there is any reservation for MSEs owned by SC/ST entrepreneurs?

    Ans: Yes, out of 25% target of annual procurement from MSEs, a sub-target of 4% is earmarked for procurement from MSEs owned by Scheduled Caste (SC) / Scheduled Tribe (ST) entrepreneurs and 3%from MSEs owned by women entrepreneur. However, in event of failure of such MSEs to participate in tender process or meet tender requirements and L1 price, 4% sub-target for procurement earmarked for MSEs owned by SC/ST entrepreneurs and 3% earmarked to women entrepreneur will be met from other MSEs.
  85. Q.89 Who is eligible for availing benefits under the Public Procurement Policy?

    Ans:The MSEs who are registered with District Industries Centers (DICs) / Khadi & Village Industries Commission (KVIC) / Khadi & Village Industries Board (KVIB) / Coir Board / NSIC / Directorate ofHandicrafts and Handloom or having Udyog Aadhaar Memorandum (UAM) or registered with any other body specified by Ministry of Micro, Small& Medium Enterprises (M/o MSME) areeligible for availing benefitsunder the Public Procurement Policy.
  86. Q.90 What is the date of implementation of this Policy?

    Ans : The policy is applicable with effect from 1.4.2012. However, the policy has become mandatory with effect from 1.4.2015 onwards.
  87. Q.91 Whether Policy is transparent, competitive and cost effective?

    Ans : The Policy rests upon core principles of competitiveness, adhering to sound procurement practices and execution of orders for supply of goods and services in accordance with a system which is fair, equitable, transparent, competitive and cost effective.
  88. Q.92 Whether the Policy is implemented in parts or fully from its inception?

    Ans: As per Gazette Notification(S.O. 5670(E)dated 8th November,2018, It is mandatory for all CPSEs to procure at least 25% of their annual procurement from MSEs including 4% from MSEs owned by SC/ST entrepreneur and 3% from MSEs owned by women entrepreneur.
  89. Q.93 Whether there is any monitoring system for assessing the Government procurement from MSEs?

    Ans: In tender, participating MSEs quoting price within band of L1+15% shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where L1 price is from someone other than an MSE. Such MSEs shall be allowed to supply at least 25% of total tendered value. In case of more than one such MSE, the supply will be shared proportionately (to tendered quantity).
  90. Q.94 Whether there is price match making facility for procurement from MSEs over large scale?

    Ans: In tender, participating MSEs quoting price within band of L1+15% shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where L1 price is from someone other than an MSE. Such MSEs shall be allowed to supply up to 20% of total tendered value. In case of more than one such MSE, the supply will be shared proportionately (to tendered quantity).
  91. Q.95 What steps are to be taken by the Government Ministries / Departments / CPSUs to develop MSE Vendors to achieve their targets for MSE procurement?

    Ans: Central Ministries /Departments /PSUs must take necessary steps todevelop appropriate vendors by organizing Vendor Development Programmes / Buyer-Seller Meets and entering into Rate Contract withMSEs for a specified period in respect of periodic requirements.

    Under the Procurement and Marketing Support scheme, State Level VDP and National Level VDPs are regularly organized by the Ministry to develop suitable MSE vendors.
  92. Q.96 What steps are to be taken by the Government Ministries / Departments / CPSUs to develop vendors from MSEs owned by SC/ST entrepreneurs?

    Ans: For enhancing participation of MSEs owned by SCs / STs in Government procurement, Central Government Ministries / Departments / PSUs have to take following steps:
    1. Special Vendor Development Programmes/ Buyer-Seller Meets would be conducted by Departments/ CPSUs for SC/STs;
    2. Outreach programmes will be conducted by NSIC to cover more and more MSEs from SC/STs under its schemes of consortia formation; and
    3. NSIC would open a special window for SCs / STs under its Single Point
    4. Registration Scheme (SPRS).
    5. A National SC/ST hub scheme has been launched in October 2016, for providing handholding support to SC/ST entrepreneur. which is being coordinated / implemented by the National Small Industries Corporation (NSIC) under this Ministry
  93. Q.97 What are the other benefits/ facilities to the MSEs available under the Policy?

    Ans: To reduce transaction cost of doing business, MSEs will be facilitated by providing them tender sets free of cost, exempting MSEs from payment of earnest money, adopting e-procurement to bring in transparency in tendering process.
    In addition to benefits mention above MSEs are also given relaxation in prior turn over and prior experience criteria without compromising in quality and technical specification of products or services.
  94. Q.98 Whether there is any review mechanism for monitoring and review of the Policy?

    Ans: A Review Committee has been constituted under chairmanship of Secretary, Ministry of MSME for monitoring and review of Public Procurement Policy for MSEs. M/o MSME will review and/or modify the composition of the Committee as and when required. This Committee will, inter alia, review list of 358 items reserved for exclusive purchase from MSEs on a continuous basis, consider requests from Government Departments, CPSUs for exemption from 25% target on a case to case basis and monitor achievements under the Policy.
  95. Q.99 Whether there is any kind of purchases that have been kept out of the purview of the Procurements under the Policy and if yes, how monitoring of the goal set will be done?

    Ans: Given their unique nature, Defense armament imports will not be included in computing 25% goal for Ministry of Defense. In addition, Defense Equipment like weapon systems, missiles, etc. will remain out of purview of such policy of reservation. Monitoring of goals set under the policy will be done, in so far as they relate to the Defense sector, by Ministry of Defense itself in accordance with suitable procedures to be established by them.
  96. Q.100 From where the detail of the Policy can be obtained?

    Ans : Policy details are available on the website of this office-
  97. Q.101 Whether this Policy is mandatory under any Act?

    Ans : Yes, The Policy is mandatory and notified under the MSMED Act,2006.
  98. Q.102 How many items are reserved for exclusive purchase from MSEs?

    Ans: There are 358 items reserved for exclusive purchase from MSE Sector.
  99. Q.103 Whether this policy is applicable for works / trading activities also?

    Ans: Policy is meant for procurement of only goods produced and services rendered by MSEs. However, traders are excluded from the purview of Public Procurement Policy.
  100. Q.104 Whether policy is applicable for MSEs registered with NSIC?

    Ans: The policy is also applicable for MSEs registered with NSIC.
  101. Q.105 Whether policy provides benefits for exemption from Security Deposits to MSEs?

    Ans: No, there is no exemption on security deposit/performance guaranty under the PPP.
  102. Q.106 Whether MSE quoting price within price band L1 + 15 % could be given complete supply to tender in case tender item is non-splitable / non-dividable?

    Ans: In case of tender item is non-splitable or non-dividable, etc. MSE quoting price within price band L1+15% may be awarded for full/ complete supply of total tendered value to MSE, considering spirit of policy for enhancing the Govt. procurement from MSE .
  103. Q.107 Which are MSEs owned by SC / ST enterprises?

    Ans: Definition of MSEs owned by SC / ST is as given under:
    1. In case of proprietary MSE, proprietor(s) shall be SC /ST.
    2. In case of partnership MSE, the SC / ST partners shall be holding at least 51% shares in the unit.
    3. In case of Private Limited Companies, at least 51% share shall be held by SC / ST promoters.
  104. Q.108 Whether Government Ministries / Departments / CPSUs those have meager value of total procurement may be exempted from policy?

    Ans: Policy is applicable to all the Govt. Ministries / Departments / CPSUs in irrespective of volume and nature of procurement.
  105. Q.109 Whether policy has provision for exemption from 20% percentage procurement target?

    Ans: The Review Committee may consider any request of Ministries / Departments / CPSUs for exemption from present25%procurement targets on case to case basis.
  106. Delayed Payment

  107. Q.110 What is MSME Samadhaan Portal?

    Ans : MSME Samadhaan is a Portal created by Office of DC(MSME), Ministry of Micro, Small and Medium Enterprises (MSME) where Micro and Small Enterprises (MSEs) can file their applications online regarding delayed payments portal
  108. Q.111 Do Ministry of MSME take action on applications filed on MSME Samadhaan Portal?

    Ans: No, MSME SAMADHAAN online portal is developed by Ministry of MSME only to facilitate MSEs filing of their applications regarding delayed payments online. The application once filed is forwarded automatically online to the concerned Micro and Small Enterprise Facilitation Council (MSEFC) established by the State/UTs as per the provisions of MSMED-Act 2006. Action on the applications regarding delayed payment is taken by the concerned MSEFC only.
  109. Q.112 Can Ministry of MSME intervene in matters of MSEFC.

    Ans: No. Only the MSEFCs have been empowered as per MSMED Act, 2006 for taking decisions regarding its reference made with them. This office does not intervene in the matters of MSEFC. In short Ministry of MSME cannot interfere with judicial functioning of MSEFC.
  110. Q.113 Is filing of Udyog Aadhaar Memorandum (UAM) Mandatory to file applications on MSME Samadhaan Portal?

    Ans : Yes, UAM is mandatory to file applications online on MSME Samadhaan Portal.
  111. Q.114 How can I get Udyog Aadhaar Memorandum (UAM) Number?

    Ans: Registration for Udyog Aadhaar can be done online on the official website of Ministry of MSME free of cost at following address –
  112. Q.115 Is it mandatory to file Delayed Payment Applications online on MSME Samadhaan Portal only?

    Ans: No. MSME Samadhaan Portal has been created only to facilitate online applications regarding delayed payments. Physical applications can also be filed at the concerned MSEFC.
  113. Q.116 Who can convert the application into Regular Reference Petition/claim case?

    Ans: The applications are converted into case by the concerned MSEFC.
  114. Q.117 If there is no action on an application filed by MSEs, whom to contact?

    Ans: After submission, the application is automatically forwarded online to concerned MSEFC. Therefore, concerned MSEFC is to be contacted after filing the application online on MSME Samadhaan Portal. The contact address of concerned MSEFC is mentioned on the acknowledgement sent on the registered email of the applicant.
  115. Q.118 Is work order compulsory to file application on MSME Samadhaan Portal?

    Ans: Yes, work order is compulsory. In case purchase order is oral an affidavit to that effect is to be submitted.
  116. Q.119 How to upload multiple invoices?

    Ans : Multiple invoices can be combined into single PDF and can be uploaded. The affidavit of oral purchase order is to be included in single PDF.

Emergency Credit Line Guarantee Scheme of Rs. 3 lakh crore

  1. Q. 120 What is Guaranteed Emergency Credit Line (GECL)?

    Ans : The GECL is a loan for which 100% guarantee would be provided by National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs), and which will be extended in the form of additional working capital term loan facility in case of Scheduled Commercial Banks (SCBs) and Financial Institutions (FIs), and additional term loan facility in case of Non-Banking Financial Companies (NBFCs), to eligible MSMEs/ Business Enterprises and interested Pradhan Mantri Mudra Yojana (PMMY) borrowers. Credit under GECL would be up to 20% of the borrower’s total outstanding credit up to Rs. 25 crore, excluding off-balance sheet and non-fund based exposures, as on 29th February, 2020, i.e., additional credit shall be up to Rs. 5 crore.
  2. Q. 121 What is the objective of the Scheme?

    Ans : The Scheme is a specific response to the unprecedented situation COVID-19. It seeks to provide much needed relief to the MSME sector by incentivizing MLIs to provide additional credit of up to Rs. 3 lakh crore at low cost, thereby enabling MSMEs to meet their operational liabilities and restart their businesses.
  3. Q. 122 What is the Emergency Credit Line Guarantee Scheme?

    Ans : The Emergency Credit Line Guarantee Scheme provides 100% guarantee coverage by NCGTC to MLIs on GECL of up to Rs. 3 lakh crore to eligible MSMEs. MSMEs for the purpose of this Scheme will include MSMEs/ Business Enterprises which are constituted as Proprietorships, Partnerships, Registered Companies, Trusts and Limited Liability Partnerships (LLPs), and also interested borrowers under PMMY.
  4. Q. 123 Who are the MLIs under the Scheme?

    Ans : All SCBs are eligible as MLIs. NBFCs which have been in operation for at least 2 years as on 29.2.2020, and FIs will also be eligible as MLIs under the Scheme.
  5. Q. 124 What will be the definition of FIs for the purpose of this Scheme?

    Ans : FIs for the purpose of this Scheme will be as defined under sub-clause (i) of clause (c) of Section 45-I of RBI Act.
  6. Q. 125 What is the duration of the Scheme?

    Ans : The Scheme would be applicable to all loans sanctioned under GECL during the period from May 23, 2020 to 31st October 2020, or till an amount of Rs. 3 lakh crore is sanctioned under GECL, whichever is earlier.
  7. Q. 126 What would be the guarantee coverage under the Scheme?

    Ans : The entire funding provided under GECL shall be provided with a 100% credit guarantee coverage by NCGTC under the Scheme.
  8. Q. 127 What will be the eligibility criteria for MSMEs to avail the benefit of the Scheme?

    Ans : The eligibility criteria under the Scheme are as under:
    • All MSME borrower accounts with combined outstanding loans across all MLIs of up to Rs. 25 crore as on 29.2.2020, and annual turnover of up to Rs. 100 crore in FY 2019-20. In case accounts for FY 2019-20 are yet to be audited/finalized, the MLI may rely upon the borrower’s declaration of turnover.
    • The Scheme is valid only for existing customers on the books of the MLI. Borrower accounts should be classified as regular, SMA-0 or SMA-1 as on 29.2.2020. Accounts classified as NPA or SMA-2 as on 29.2.2020 will not be eligible under the Scheme.
    • The MSME borrower must be GST registered in all cases where such registration is mandatory
    • This condition will not apply to MSMEs that are not required to obtain GST registration. • Loans provided in individual capacity will not be covered under the Scheme.
  9. Q. 128 Will the Scheme also cover borrowers under PMMY?

    Ans : Yes, loans under PMMY extended on or before 29.2.2020, and reported on the MUDRA portal shall be covered under the Scheme.
  10. Q. 129 Will GECL be extended as a separate loan account, or as part of the existing loan account of the borrower?

    Ans : A separate loan account shall be opened for the borrower for extending additional credit under GECL. This account will be distinct from the existing loan account(s) of the borrower
  11. Q. 130 Will loans under the Scheme be automatically given without any application or solicitation from the borrower?

    Ans : This is a pre-approved loan. An offer will go out from the MLI to the eligible borrowers for a preapproved loan which the borrower may choose to accept. If the MSME accepts the offer, it will be required to complete requisite documentation. Thus, an ‘opt-out’ option will be provided to eligible borrowers under the Scheme, i.e., if the borrower is not interested in availing the loan, he/she may indicate accordingly.
  12. Q. 131 What would be the procedure followed in case a borrower has loan accounts with multiple lenders?

    Ans : In case a borrower has existing limits with multiple lenders, GECL may be availed either through one lender or each of the current lenders in proportion depending upon the agreement between the borrower and the MLI.
    • In case the borrower wishes to take from any lender an amount more than the proportional 20% of the outstanding credit that the borrower has with that particular lender, a No Objection Certificate (NOC) would be required from all other lenders.
    • No NOC will, however, be required if the GECL availed from a particular lender is limited to the proportional 20% of the outstanding credit that the borrower has with that lender.
  13. Q. 133 To avail GECL, will it be necessary for existing loans of the borrower to be covered under existing guarantee schemes such as CGFMU or CGTMSE?

    Ans : Yes, interest rates on GECL shall be capped as under:
    • For Banks and FIs, one of the RBI prescribed external benchmark linked rates +1% subject to a maximum of 9.25% per annum
    • For NBFCs, the interest rate on GECL shall not exceed 14% per annum
    The Scheme may also be operated in combination with applicable interest subvention schemes, as far as feasible.
  14. Q. 134 What would be the tenor of loans provided under GECL?

    Ans : The tenor of loans provided under GECL shall be four years from the date of disbursement. No pre-payment penalty shall, however, be charged by the MLIs in case of early repayment.
  15. Q. 135 Is there any moratorium period prescribed under the Scheme?

    Ans : Yes, a moratorium period of one year on the principal amount shall be provided for GECL funding. Interest shall, however, be payable during the moratorium period. The principal shall be repaid in 36 instalments after the moratorium period is over.
  16. Q. 136 Is any turnaround time prescribed for MLIs under the Scheme for sanction of GECL?

    Ans : Indicative turnaround time for loans under the Scheme shall be the same as those prescribed by Department of Financial Services for credit support in the context of COVID-19 pandemic.
  17. Q. 137 Will any guarantee fee be charged under the Scheme by NCGTC?

    Ans : No, NCGTC will not charge any guarantee fee under the Scheme
  18. Q. 138 Will any processing fee be charged by MLIs for sanction of loans under GECL?

    Ans : Since additional credit under GECL is to be provided to existing customers, no additional processing fee shall be charged by lenders.
  19. Q. 139 Will MLIs ask for any additional collateral for the GECL facility?

    Ans : No additional collateral shall be asked by MLIs for additional credit extended under GECL.
  20. Q. 140 Will the categorization of existing loans extended through current Government schemes such as PMEGP or PMMY change if GECL is provided to such borrowers?

    Ans : No. Existing loans extended through current Government schemes would continue to be categorized under that scheme as earlier. GECL under this Scheme shall be over and above the existing loan.
  21. Q. 141 What will be the risk weight assigned to the credit extended under GECL?

    Ans : Approval of RBI has been requested for assigning zero risk weight to the credit extended under GECL.
  22. Q. 142 What will be the security on credit extended under GECL? Scheme?

    Ans : The credit under GECL will rank second charge with the existing credit facilities in terms of cash flows (including repayments) and securities, with charge on the assets financed under the Scheme to be created within a period of 3 months from the date of disbursal.
  23. Q. 143 Will MLIs be required to enter into any agreement with NCGTC for the purpose of this Scheme?

    Ans : Yes, MLIs will be required to submit an Undertaking to NCGTC for the purpose of this Scheme
  24. Q. 144 How will the guaranteed amount be paid by NCGTC to the MLIs on invocation of the guarantee?

    Ans : 75% of the guaranteed amount will be paid by NCGTC within 30 days of an eligible claim being preferred by the MLI concerned. The balance 25% will be paid on conclusion of recovery proceedings or till the decree gets time barred, whichever is earlier.
  25. Q. 145 Who will issue detailed operational guidelines for ECLGS, and who will have the authority to modify provisions of the Scheme/operational guidelines?

    Ans : NCGTC has issued the detailed operational guidelines for the Scheme. The Management Committee for ECLGS fund will have the authority to approve any changes to the current structure of the Scheme/ operational guidelines.
  26. Q. 146 I run a business enterprise and have a GST registration. However, I am not registered as an MSME nor do I have Udyog Aadhar. My Bank also does not classify me as an MSME borrower. Am I eligible under the scheme?

    Ans : You are eligible if:
    (i) you have total credit outstanding of Rs. 25 Crore or less as on 29th Feb 2020
    (ii) Your turnover for 2019-20 was up-to Rs. 100 Cr.
    (iii) You have a GST registration or were not required to obtain such GST registration Udyog Aadhar or recognition as MSME is not required under this Scheme
  27. Q. 147 My Bank/ NBFC has offered me a pre-approved loan of 15% only though the scheme mentions 20%. Can the Bank/ NBFC do so?

    Ans : Under ECLGS, Banks/ NBFCs are to offer loans up-to 20%. Actual loan extended can therefore be less than 20%. This is generally on mutually agreed terms between the borrower and the lender based on factors relevant to the business operations.
  28. Q. 148 I operate a lending business. Am I eligible?

    Ans : No please. Typically, lending institutions get funds from banks/ NBFCs through on lending, refinance, asset purchase, securitization, assignment etc. There are therefore other windows available including the Partial Credit Guarantee Scheme and the Special Liquidity Facility
  29. Q. 149 Are all NBFCs eligible to become MLIs with NCGTC?

    Ans : No. The NBFC must be registered with RBI, should be meeting the CRAR requirements prescribed by RBI and have been in lending business for at least two years as on 29th Feb 2020. The Managing Committee of the Scheme may prescribe additional qualification criteria from time to time.
  30. Q. 150 What will be the procedure for claim settlement?

    Ans : This will be advised in due course through additional guidelines to be issued.
  31. Q. 151 Can new MSME borrowers get covered under the scheme?

    Ans : ECLGS scheme is only for existing borrowers on the books of the banks as on 29th Feb 2020. Any New borrowers should be covered under ongoing CGTMSE and NCGTC schemes
  32. Q. 152 Can co-applicant loans between entity and the promoter or director get covered under the scheme?

    Ans : For loans having co-applicant, only those existing loans where entity is the primary co-applicant are covered under the Scheme for additional emergency funding
  33. Q. 153 Are off balance sheet loans provided to MSME borrowers covered as part of the scheme?

    Ans : No, the scheme does not cover the off-balance sheet exposure. Only on balance sheet exposures outstanding as on 29th Feb, 2020 are eligible to be covered under the scheme.
  34. Q. 154 How is the interest rate to be decided for loans under the scheme?

    Ans : As per RBI guidelines dated September 04, 2019 & February 26, 2020, all loans to MSMEs must be benchmarked to one of the external benchmark rates. Banks are free to decide the spread over the external benchmark as per their approved policies. Accordingly, loans under the ECLGS must adhere to the above-mentioned guidelines and linked to the external benchmark rates.
    As part of the scheme overall lending rate is capped 1% above the external benchmark lending rate or 9.25% p.a. whichever is lower. Loans which are allowed not to be benchmarked to external rates shall be capped at maximum of 9.25%.
    For e.g. for Bank ABC External Benchmark Lending Rate is 7.80 %; i.e. RBI Repo Rate (4.0%) + Spread (3.80%). For the purpose of this scheme the lending rate would be Min of (7.8% + 1% = 8.8% and 9.25%) = 8.8% in this case.
    For e.g. for Bank ABC1 External Benchmark Lending Rate is 8.50 %; i.e. RBI Repo Rate (4.0%) + Spread (4.50%). For the purpose of this scheme the lending rate would be Min of (8.5% + 1% = 9.5% and 9.25%) = 9.25% in this case.
  35. Q. 155 I am not a registered MSME and operate a general/retail business. My account was NPA as on 29th Feb, 2020. Am I eligible for ECLGS?

    Ans : Accounts that are NPA or where overdues have crossed 60 days (SMA-II) are not eligible under ECLGS.
  36. Q. 156 My lender, which is an NBFC, proposes to charge 15% for the loan. Is this permissible?

    Ans : While a NBFC lender can charge a rate of interest higher than 14%, such a loan would not be eligible for guarantee coverage.
  37. Q. 157 What is the process of issue of Guarantees under the scheme?

    Ans : As per the system developed by us for issue of guarantee under ECLGS, once a lender enters the details of the loan sanctioned to an eligible borrower as per the scheme guidelines, the system shall approve the guarantee automatically and will provide Application Reference No. and Credit Guarantee Number to the lender, which shall be used by the lender for later references.
    No documents are sought at the time of application lodgment of guarantee.
  38. Q. 158 Will a portfolio / client that has been purchased under a pool qualify under this scheme?

    Ans : The guarantee is available to the existing lender for the additional loan extended during the specified period. Thus, the lenders on whose book these borrowers are currently can provide these facilities provided the borrowers meet all the eligible conditions as defined in the scheme guidelines. It should be noted that the eligible amount for loan under ECLGS is 20% of the outstanding amount as on 29th Feb 2020. The buyer of the pool should be an MLI under the Scheme.
  39. Q. 159 Once the credit facility / loan under the scheme is extended to eligible clients, can the loans be assigned or be eligible for securitization?

    Ans : The facilities provided under ECLGS are eligible for securitization. Since the facility is to be opened as a separate loan account it can be treated at par with normal loans for securitization purpose. Other conditions of eligibility must be fulfilled.
  40. Q. 161 In retail financial sector, it is a common practice to balance transfer of loans from one entity to other. Will these customers be eligible for this scheme?

    Ans : Mere transfer of loan from one lender to the other will not invalidate the customer or reduce the maximum loan eligibility available to such customer under this scheme, provided the lender taking over is also eligible under the scheme as per the criteria defined in the scheme guidelines. MLIs should note that the overall loan under the scheme will be capped at overall outstanding as on 29th Feb, 2020
  41. Q. 162 Will MSME customer of HFC entitled for this scheme?

    Ans : MSME portfolio of HFC will be eligible. All MSME Loans must be given to entities which are eligible to be covered and provided other eligibility conditions are fulfilled.
  42. Q. 163 What would be the format of NOC and undertaking to be obtained from other lender?

    Ans : No format has been prescribed under the scheme. MLIs may use whatever they have been following till now
  43. Q. 164 What would be the nature of guarantee under the scheme?

    Ans : The Credit Guarantee from NCGTC would be unconditional and irrevocable.
  44. Q. 165 What would be the risk weight assigned to loans provided guarantee cover under the scheme ?

    Ans : As per the GoI scheme of ECLGS, loans extended by Member Lending Institutions and covered under the proposed scheme shall be provided 100% guarantee cover. GoI has already requested RBI to assign zero risk weight to such loans.
  45. Q. 166 Guarantee was issued under the scheme to a borrower who was eligible at the time of issue of guarantee. However, subsequently its combined loan outstanding across all MLIs

    Ans : No, it would not become void. Eligibility is reckoned at the time of sanction of the loan. Clause 6 of the Undertaking furnished by MLIs shall therefore stand deleted.
  46. Q. 167 Who can provide answers to any further queries?

    Ans : Please address your queries/suggestions to

Employment Provident Fund Organization (EPFO)

  1. Q. 168 Who is eligible for the advance from EPF to fight COVID-19 Pandemic?

    Ans : Any member of EPF Scheme, 1952 with UAN (Universal account number) employed in any establishment or factory covered under EPF & MP Act, 1952.
  2. Q. 169 Under which provision of the EPF Scheme, 1952, a member is entitled for benefit?

    Ans : That a new sub-para (3) has been inserted in Paragraph 68L of the EPF Scheme, 1952 through GSR No.225(E) published in the Gazette of India (Extraordinary), Part II- Section 3- sub section (1) on 28.03.2020 to provide for benefit.
  3. Q. 170 What is the new beneficial provision?

    Ans : It is to provide for non-refundable advance from their EPF account to EPF members, employed in factory or establishment located in an area, which is declared to be affected by outbreak of epidemic or pandemic by the Appropriate Govt.
  4. Q. 171 How can I know whether establishment/factory in which I am employed is in an area declared to be affected by COVID-19 pandemic?

    Ans : Since COVID-19 has been declared a Pandemic by the Appropriate Government for the entire country and therefore the employees working in establishments and factories across entire India, who are members of the EPF Scheme, 1952, are eligible.
  5. Q. 172 Is EPF member required to produce any certificate or document for availing this advance?

    Ans : No certificate or documents are to be submitted by member or his/her employer for availing the benefit.
  6. Q. 173 How much money can I get from my EPF account under this new provision to fight COVID-19 and do I have to refund it?

    Ans : You can get non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to your credit in the EPF account, whichever is less. The amount standing to credit in EPF includes employee’s share, employer’s share and interest thereupon.
    Since withdrawal is non-refundable, there is no requirement to refund the amount.
  7. Q. 174 Please illustrate the calculation of benefits

    Ans : If the balance in member’s EPF account as on date is Rs.50,000/- and monthly basic wage and dearness allowance is Rs.15,000/- 75% of balance of Rs.50000/- is Rs.37,500/- & amount of three months wage is Rs.45000/- So member is eligible to get Rs.37,500/- the least of two amounts.
  8. Q. 175 How can I claim this amount? Do I need to submit claim form to EPFO Office?

    Ans : Like claim for all other types of advances, the claim for this advance also can be filed Online if your UAN is validated with Aadhaar and KYC of Bank account and Mobile number is seeded in UAN.
  9. Q. 176 Where and how can I file Online Claim?

    Ans : On the home page of website-, under the TAB “COVID-19” on top right-hand corner, instructions for filing online advance claim is hosted.
    The process is also noted below:
    a. Login to Member Interface of Unified Portal (
    b. Go to Online Services>>Claim (Form-31,19,10C & 10D)
    c. Enter last 4 digits of your Bank Account and verify
    d. Click on “Proceed for Online Claim”
    e. Select PF Advance (Form 31) from the drop down
    f. Select purpose as “Outbreak of pandemic (COVID-19)” from the drop down
    g. Enter amount required and Upload scanned copy of cheque and enter your address h. Click on “Get Aadhaar OTP”
    i. Enter the OTP received on Aadhaar linked mobile.
    j. Claim is submitted
  10. Q. 177 Can I file claim through my mobile phone?

    Ans : Yes, from your mobile phone you can either
    i) login to ( and follow steps a. to j as in Ans to Q9 to file claim OR
    ii) Through UMANG (Unified Mobile Application for New-age Governance) Mobile APP Home> EPFO> Employee Centric Services> Raise Claim> Login with your UAN and OTP received on your mobile number registered with UAN to file claim
  11. Q. 178 Can an employee working in an exempted establishment get the advance to fight COVID-19 pandemic from PF Trust?

    Ans : The “Terms and conditions of exemption” in Para 27AA of EPF Scheme, 1952, provides that any amendment to EPF Scheme, 1952, which is more beneficial to the employees becomes applicable to exempted establishments pending formal amendment of Trust Rules.
    So, employee of an exempted establishment can withdraw from his PF account maintained with the PF Trust of the establishment by making application to the PF Trust
  12. Q. 179 I availed advance recently for illness. Can I avail advance to fight COVID-19 pandemic?

    Ans : Yes. This advance can be availed irrespective of advances availed earlier.
  13. Q. 180 What is income tax rate for advance to fight COVID-19 pandemic?

    Ans : Income Tax is not applicable on any advance availed under EPF Scheme.
  14. Q. 181 I have already applied advance for a different purpose and requested a lower amount. I do not want to avail this advance now and would like to prefer claim for advance to fight COVID-19 pandemic. However, it is not permitted by the portal. What should I do?

    Ans : To enable submission of fresh claim for availing this advance, the earlier claim under submission needs rejection. Please send request on email of your jurisdictional Regional Office for rejection of earlier form 31 submitted.
  15. Q. 182 How long will it take for credit of amount in my bank account after submission of claim for advance to fight COVID-19 pandemic?

    Ans : Claims for advance to fight COVID-19 pandemic are being processed on priority considering exigency of the situation.
  16. Q. 183 KYC is not complete for my EPF account and hence I am unable to file this claim.?

    Ans : The claim for this advance can be filed Online if your UAN is validated with Aadhaar and KYC of Bank account and Mobile number is seeded in UAN. You are requested to complete your KYC by submitting same on Member Portal. If your basic details that is name, date of birth and gender against UAN are same as that in Aadhar, you can link your Aadhar through eKYC Portal. In case of mis-match in KYC details and details in EPF account, please submit online request for demographic detail correction through your employer. The bank account details has to be digitally approved by the employer. For submitting your claim online our aadhar linked mobile will get OTP. So, your aadhar should be linked with a mobile
  17. Q. 184 Is it necessary to apply for 75% of PF balance under this provision?

    Ans : Withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to your credit in the EPF account, whichever is less, is maximum permissible limit. You can apply for lesser amount also.
  18. Q. 186 Will EPFO process advance to fight COVID-19 pandemic despite lockdown?

    Ans : Yes. Advance to fight COVID-19 pandemic are being settled on priority to mitigate hardship faced by members.
  19. Q. 187 I have not left my job. Can I withdraw PF to fight COVID-19?

    Ans : Yes. You can avail this advance while still in service.

Mudra Scheme

  1. Q. 188 What is Mudra?

    Ans : MUDRA, which stands for Micro Units Development & Refinance Agency Ltd., is a financial institution set up by Government of India for development and refinancing of micro units enterprises. It was announced by the Hon’ble Finance Minister while presenting the Union Budget for FY 2016. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs.
  2. Q. 189 Why Mudra has been set up?

    Ans : The biggest bottleneck to the growth of entrepreneurship in the Non–Corporate Small Business Sector (NCSBS) is lack of financial support to this sector. More than 90% of this sector does not have access to formal sources of finance. GoI is setting up MUDRA Bank through a statutory enactment for catering to the needs of the NCSBS segment or the informal sector for bringing them in the mainstream.
  3. Q. 190 What are the roles and responsibilities of Mudra?

    Ans : MUDRA would be responsible for refinancing all Last Mile Financiers such as Non-Banking Finance Companies, Micro Finance Institutions, Societies, Trusts, Section 8 Companies [formerly Section 25], Small Finance Banks and Regional Rural Banks which are in the business of lending to micro/small business entities engaged in manufacturing, trading and services activities as well as agri-allied activities. MUDRA would also partner with State/Regional level financial intermediaries to provide finance to Last Mile Financier of small/micro business enterprises.
  4. Q. 191 What are the offerings of Mudra? How will Mudra function?

    Ans : Under the aegis of Pradhan Mantri MUDRA Yojana (PMMY), MUDRA has already created its initial products / schemes. The interventions have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also to provide a reference point for the next phase of graduation / growth to look forward to. The financial limit for these schemes are:-

    a. Shishu : covering loans upto 50,000/-
    b. Kishor : covering loans above 50,000/- and upto 5 lakh
    c. Tarun : covering loans above 5 lakh to 10 lakh

    MUDRA’s delivery channel is conceived to be through the route of refinance primarily to Banks/NBFCs/MFIs.
    At the same time, there is a need to develop and expand the delivery channel at the ground level. In this context, there is already in existence, a large number of ‘Last Mile Financiers’ in the form of companies, trusts, societies, associations and other networks which are providing informal finance to small businesses.
  5. Q. 192 Who are the target clients of Mudra, what kind of borrowers are eligible for assistance from Mudra?

    Ans : Non–Corporate Small Business Segment (NCSB) comprising of millions of proprietorship / partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits / vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas.
  6. Q. 193 Are regional Rural Banks eligible for assistance from Mudra?

    Ans : Yes, MUDRA will be extending refinance support to RRBs for enhancing their liquidity
  7. Q. 194 What is rate of interest charged by Mudra?

    Ans : MUDRA is a refinancing agency which will extend its funds to Last Mile Financiers to enable them to reach out to the sector. Access to finance in conjunction with rational price is going to be the unique customer value proposition of MUDRA. It will use a variety of innovative financing means including technology to bring down the cost of funding for the ultimate borrower.
  8. Q. 195 I have a small business dealing in paper goods, can Mudra help me?

    Ans : MUDRA loan is available through Banks/NBFCs/MFIs for such activities. All kind of manufacturing, trading and service sector activities can get MUDRA loan. Loans are categorised into Shishu, Kishor and Tarun. These products have been designed to cater to customers operating at the lower end of the enterprise spectrum. The loans will be extended through MFIs, NBFCs, Banks, etc.
  9. Q. 196 Have graduated recently, I want to start my own business, can Mudra help me?

    Ans : MUDRA loans are available in three categories. For small business, loans upto 50000/- /- is available under the 'Shishu' category and beyond 50,000 and up to 5 lakh under the 'Kishor' category. It also offers loans beyond 5 lakh and up to 10 lakh under the Tarun category. Depending on the nature of business and project requirement you can access finance from one of the intermediaries of MUDRA as per the norms.
  10. Q. 197 Have diploma in food processing technology. I want to start my own unit. Please guide me?

    Ans : Food Processing is an eligible activity for coverage under one of the MUDRA schemes. You can avail of assistance under MUDRA schemes for food processing from any financing banks/MFIs/NBFCs.
  11. Q. 198 I am an artisan specializing in Jari work. I want to start my own work instead of doing job work for others. Can Mudra help me?

    Ans : You can avail assistance under the ‘Shishu’ category through any banks/NBFCs/MFIs operating in your region, for setting up your own enterprise.
  12. Q. 199 I intened to work on franchise model and open an ice cream parlour. Can Mudra help me?

    Ans : MUDRA operates a special refinance scheme for traders and shopkeepers. You can avail the facilities under the scheme as per your requirements from any banks/MFIs/NBFCs in the area.
  13. Q. 200 I want to expand my pottery business and adding more variety and designs, what help can I get from Mudra?

    Ans : You can avail assistance under the 'Shishu' category through any banks/NBFCs/ MFIs operating in your region for setting up your own enterprise.
  14. Q. 201 What is the scope of PMMY and various types of loan available and which are the agencies that will provide loan?

    Ans : Pradhan Mantri Mudra Yojana (PMMY) loans will be extended by all Public Sector Banks such as PSU banks, Regional Rural Banks (RRBs), Small Finance Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions and Non-Banking Finance Companies. All loans sanctioned on or after April 08, 2015 up to a loan size of 10 lakh for non-farm income generating activities will be branded as PMMY loans.
  15. Q. 202 Who will monitor the implementation of PMMY?

    Ans : Monitoring of PMMY progress at the State level will be done through SLBC forum and at National level by MUDRA/Department of Financial Services, Government of India. For this purpose, MUDRA has developed a portal, wherein the Banks and other lending institutions directly feed their achievement details which are consolidated by the system and reports are generated for review.
  16. Q. 203 Is there any scheme in Central/State Govt. which is applicable all over India, in which loan amount without guarantee is granted/the guarantors identity is cheeked?

    Ans : Pradhan Mantri Mudra Yojana is a Government of India scheme, which enables a small borrower to borrow from banks, MFIs, NBFCs for loans upto 10 lakh for non farm income generating activities. Generally, loans upto ` 10 lakh issued by banks under Micro Small Enterprises is given without collaterals.
  17. Q. 204 Are carpentry and RO water plant installation eligible for the loan?

    Ans : Carpentary and RO water plant installation, on a business mode, are eligible activities under MUDRA loan, if the loan amount is up to 10 lakh The primary requirement for availing a MUDRA loan is to be an income generating activity under manufacturing, processing, trading and service sector as well as agri-allied activities and the loan amount is up to 10 lakh .
  18. Q. 205 What is the eligibility of persons for availing mudra loans?

    Ans : Any Indian Citizen who has a business plan for a non-farm income generating activity such as manufacturing, processing, trading or service sector whose credit need is up to 10 lakh can approach either a Bank, MFI or NBFC for availing of MUDRA loans under PMMY. The usual terms and conditions of the lending agency may have to be followed for availing of loans under PMMY. The lending rates are as per the RBI guidelines issued in this regard from time to time.
  19. Q. 206 Is there any subsidy under pmmy? If so, details thereof?

    Ans : There is no subsidy for the loan given under PMMY. However, if the loan proposal is linked to some Government scheme, wherein the Govt. if providing capital subsidy, it will be eligible under PMMY also
  20. Q. 207 Kindly provide brief profile of mudra?

    Ans : MUDRA which stands for Micro Units Development and Refinance Agency Ltd is a refinance agency and not a direct lending institution. MUDRA provides refinance support to its intermediaries viz. Banks, Micro Finance Institutions and NBFCs, who are in the business of lending for income generating activities in the non farm sector in manufacturing, processing, trading or service sector and who in turn will finance the beneficiaries.
  21. Q. 208 Can you provide information on mudra card?

    Ans : MUDRA Card is an innovative credit product wherein the borrower can avail of credit in a hassle free and flexible manner. It will provide a facility of working capital arrangement in the form of CC/OD to the borrower. Since MUDRA Card will be RuPay debit card, it can be used for drawing cash from ATM or Business Correspondent or make purchase using Point of Sale (POS) machine. Facility is also there to repay the amount, as and when, surplus cash is available, thereby reducing the interest cost.
  22. Q. 209 Would the people of kumhar community be benefitted from pmmy for carrying out potters work?

    Ans : Yes. MUDRA Yojana is aimed at supporting all kind of income generating activities under manufacturing, processing, trading and service sector. Assistance can be availed under Micro Credit Scheme through any of the Micro finance institutions/Non-Banking Financial Companies/ Banks operating in the area.
  23. Q. 210 What are the documents that are required to be submitted for availing loans under mudra?

    Ans : The terms and conditions of the loan will be governed by the rules of the lending institution and the broad guidelines of RBI. The guidance regarding the documents needed may be obtained from any of the lending institutions in your locality.
  24. Q. 211 What is the grievance mechanism available against bank officials, in the event of non-sanction of loan?

    Ans : Any grievance against non-consideration of MUDRA loan can be registered with the higher authorities in the respective Bank like Regional Manager/Zonal Manager of the Bank, provided there is any lapse from the bank officials in sanctioning the loan.
  25. Q. 212 Can you elaborate on the details of security to be deposited for mudra loans?

    Ans : As per the recommendations of the Working Group constituted by RBI for reviewing the Credit Guarantee Schemes for Micro Small Enterprises and accepted by RBI, Banks have been mandated not to insist for collateral security in the case of loans upto 10 lakh extended to the units in the Micro Small Enterprises sector.
  26. Q. 213 Is there any standard format of application to avail mudra loans?

    Ans : Yes. In respect of Shishu category, a one page application format has been designed which has been posted in MUDRA website. In respect of Kishor and Tarun category, a three-page indicative application format has been designed and the same is also posted in MUDRA website.
  27. Q. 214 Can you briefly explain the repayment terms, eligibility and action plan for the assistance availed from mudra?

    Ans : The terms and conditions of the loan will be governed by the rules and regulations of the lending institution and the broad guidelines of RBI. The lending institution will be processing the loan request, based on the merits of the proposal only. The loan amount will be decided by the requirement of the proposed income generating activity. The repayment terms will be governed by the cash flow of the enterprise and the eligibility of the borrower will be decided by the norms of lending institutions.
  28. Q. 215 Is PMMY loans applicable to all banks all over india?

    Ans : Yes. Department of Financial Services (DFS) vide its letter dated May 14, 2015 have advised all PSBs, RRBs and Small Finance Banks regarding roll out of PMMY and to cover all loans upto loan size of 10 lakh sanctioned on or after April 08, 2015 for income generation under PMMY. DFS have also been issuing various instructions including fixing of targets branch wise to the Head Offices of the Banks which has been advised to percolate the same to their zonal/regional/branch offices.
  29. Q. 216 Is there any requirement for a life insurance for mudra scheme?

    Ans : Life insurance is not mandatory for loans under PMMY. However, the terms and conditions of lending under PMMY are based on the lending policy of the respective lending institution.
  30. Q. 217 Is PAN card required to avail PMMY loans?

    Ans : PAN card is not compulsory to avail PMMY loans. However, the borrower may have to satisfy the KYC requirements of the financing institutions.
  31. Q. 218 What is the rate of interest on mudra loans?

    Ans : The interest rates are deregulated and the banks have been advised to charge reasonable interest rates within the overall RBI guidelines.
  32. Q. 219 If the lending institutions do not give PMMY loans, what can i do to get it?

    Ans : The matter may be escalated within the respective bank’s higher authorities. The applicant can also approach another bank or NBFC/MFI operating in the area for the loan requirement.
  33. Q. 220 What would be the action which can be initiated against banks which insist for security/collateral under PMMY, because in many places, all the banks are insisting for the security/collateral? Where should complaint against the bank be made when bank demand security/collateral for loans under PMMY?

    Ans : Compliant against any bank branch can be registered with the Regional Office/Zonal Office/Head office of the respective bank. The details of the Grievance Redressal Mechanism of each bank will be available at the Bank branch.
  34. Q. 221 Is handicapped persons also eligible for PMMY loans?

    Ans : Any Indian Citizen, who is eligible to avail of loan and has a business plan for income generating activity, can avail of MUDRA loan. The loan proposal should be for setting up of a new/upgrading an existing Micro business enterprises in the manufacturing, processing, trading and service sector.
  35. Q. 222 Is it required to submit IT returns for the preceding 2 years for availing loan of Rs. 10 lakh under PMMY?

    Ans : Generally, IT returns are not insisted for small value loans. However, the requirement of documents will be advised by the concerned lending institutions based on their internal guidelines and policies.
  36. Q. 223 Under PMMY-shishu loans, what is the turn around time for processing the loan proposal?

    Ans : For shishu loans, normally the turn-around-time for processing the loan proposals on receipt of complete information is 7 to 10 days.
  37. Q. 224 Who are the eligible applicants under PMMY?

    Ans : Any individual including women, proprietary concern, partnership firm, private limited company or any other entity are eligible applicant under PMMY loans, whose loan requirement is up to Rs. 10 lakh.
  38. Q. 225 Are mudra loans available for purchase of cng tempo/taxi?

    Ans : Mudra loans would be available for purchase of cng tempo/taxi, in case the applicant intends to use the vehicle for commercial purposes.
  39. Q. 226 Is khadi activity eligible under PMMY loans?

    Ans : Yes. Mudra loans are applicable for any activity which results in income generation. As khadi is one of the eligible activities under textile sector and in case mudra loans are taken for income generation, the same can be covered.

Announcements made under Special Economic Package

  1. Q. 227 What is the loan amount under MUDRA Shishu loans and is there any provision for interest subvention?

    Ans : Mudra Shishu loans covers loans upto Rs. 50,000/-. Yes, interest subvention of 2% for prompt payees for a period of 12 months to MUDRA Shishu loanees have been announced recently
    For more details:

Prime Minister’s Employment Generation Programme (PMEGP)

  1. Q. 228 What is maximum project cost allowed under PMEGP?

    Ans : Rs.25.00 lakhs for manufacturing unit and Rs.10.00 lakhs for Service Unit
  2. Q. 230 How much Margin Money (Govt. Subsidy) admissible?

    Ans : Categories of beneficiaries under PMEGP

    Rate of (Margin Money) Subsidy(of project cost)
    Area (location of project/unit) Urban Rural
    General Category 15% 25%
    Special (including SC / ST / OBC /Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas etc. 25%(Urban ) 35%(Rural)
  3. Q. 231 What is the component of project cost?

    Ans : Capital Expenditure Loan, one cycle of working capital and 10% of project cost as own contribution in case of General category and 5% of project cost in case of weaker section.
  4. Q. 232 Who are the beneficiaries?

    Ans : Individual Entrepreneurs, Institutions, Co-operative Societies, Self Help Groups, Trusts
  5. Q. 233 Who are the financial agencies?

    Ans : Public Sector Banks ,Regional Rural Banks(RRB), Co-operative Banks and Private Scheduled Commercial Banks approved by respective State Task Force Committee.
  6. Q. 234 How the capital expenditure loan / Cash Credit Limit be utilized ?

    Ans : Working Capital at least once should touch 100% limit of Cash Credit within three years of Lock-in period of Margin Money and not less than 75% of the utilization of the sanction limit on an average.
  7. Q. 235 Where the beneficiary has to submit his/her application/ Project?

    Ans : A Beneficiary can submit his/her application/Project online on kvic website / List of office addresses of KVIC/KVIB/DIC are available at our website.
  8. Q. 236 What is Village Industry ?

    Ans : Any Village Industry (except those mentioned in the negative list) located in the Rural Area which produces any goods or renders any service with or without the use of power and in which the fixed capital investment for head of a full time artisans or worker does not exceed Rs.1.00 lakh in plain area and Rs.1.50 lakhs in hilly areas and for A & N Island and Lakshadweep Rs.4.5 Lakhs.
  9. Q. 237 What is rural area ?

    Ans : Any area classified as Village as per the revenue record of the State, irrespective of the population. It also includes an area even if classified as town provided its population does not exceed 20000.
  10. Q. 238 What is Age limit ?

    Ans : Any adult beneficiary above 18 years is eligible for financing under PMEGP.
  11. Q. 239 What are the main criteria of project?

    Ans : It should fulfill the criteria of rural area (for Rural Area project), per capita investment, own contribution, negative list and the unit should be new one
  12. Q. 240 Whether EDP training is compulsory?

    Ans : Before Claim through PMEGP portal ,EDP training of 10 working days for Project cost. More than Rs. 5.00 lakhs and 6 Working days training for upto Project Cost Rs. 5.00 lakhs to the beneficiary is compulsory.
  13. Q. 241 Whether collateral security is mandatory?

    Ans : As per RBI guidelines the project costing upto Rs.10.00 lakhs under PMEGP loans are free from collateral security. The CGTSME provides collateral guarantee for the project beyond Rs.5.00 lakhs and upto Rs.25.00 lakhs under PMEGP scheme.
  14. Q. 242 What is the helpline for the beneficiary in preparation of the project ?

    Ans : 30 model projects uploaded on website
  15. Q. 245 Whether model projects are available with KVIC.

    Ans : yes, Industry wise model projects are available at
  16. Q. 246 where training centers are available to undertake EDP?

    Ans : List of EDP training centers including 582 training center of RSETI/RUDSETIS are available at our

Start Up India

  1. Q. 249 What is Startup India Hub?

    Ans : Startup India Hub is a one-stop platform for all stakeholders in the Startup ecosystem to interact amongst each other, exchange knowledge and form successful partnerships in a highly dynamic environment.
  2. Q. 250 How do Investors add value to Startups?

    Ans : Investors particularly venture capitalists (VCs) add value to startups in a lot of ways:
    1. Stakeholder Management: Investors manage the company board and leadership to facilitate smooth operations of the startup. In addition, their functional experience and domain knowledge of working and investing with startups imparts vision and direction to the company.
    2. Raising Funds: Investors are best guides for the startup to raise subsequent rounds of funding on the basis of stage, maturity, sector focus etc. and aid in networking and connection for the founders to pitch their business to other investors.
    3. Recruiting Talent: Sourcing high-quality and best-fit human capital is critical for startups, especially when it comes to recruiting senior executives to manage and drive business goals. VCs, with their extensive network can help bridge the talent gap by recruiting the right set of people at the right time.
    4. Marketing: VCs assist with marketing strategy for your product/service.
    5. M&A Activity: VCs have their eyes and ears open to merger and acquisition opportunities in the local entrepreneurial ecosystem to enable greater value addition to the business through inorganic growth.
    6. Organizational Restructuring: As a young startup matures to an established company, VCs help with the right organizational structuring and introduce processes to increase capital efficiency, lower costs and scale efficiently.
  3. Q. 251 Why do Investors invest in Startups?

    Ans : Investing in startups is a risky proposition, but the low requirement for overhead capital combined with high upside potential, makes it lucrative for investors to put their bets on startups.
  4. Q. 252 How can I register a profile on the hub?

    Ans : Registering a profile on the hub is a fairly simple process.
    • On clicking the “Register” tab on the top right-hand corner of the page which you will be directed to our “mygov” platform for authentication where you will be asked to fill details such as your name, email address, etc. This will give you a one time password for verification as well as a link to set a new password.
    • Sign in using the login credentials you created in step 1. This will direct you to the Hub where you can select and create the profile of a stakeholder which best defines your role.
  5. Q. 253 How do we connect to enablers after creating a profile?

    Ans : The system is build to connect you to your relevant stakeholders based on your industry and preferred stage. Under the profile of every enabler there will be an option to “connect/apply”. Upon clicking, a request will be sent to the respective profile for acceptance. Once accepted, you will able to see the enabler as a new connection.
    Please note that you can connect with upto 3 users per week.
  6. Q. 254 Can a foreign company register under Startup India hub?

    Ans : Any entity having at least one registered office in India is welcome to register on the hub as location preferences, for the time being are only created for Indian states. However, we are working on international relations and will soon be able to enable registration for stakeholders from the global ecosystem
  7. Q. 255 I want to share events, tools & templates, reports, blogs, etc. How can I publish these on the Hub?

    Ans : For publishing content, you can get in touch with us on

Support for Entrepreneurial and Managerial Development of SMEs through Incubators

  1. Q. 256 What is the objective of Incubation scheme?

    Ans : The main objective of the scheme is to promote & support untapped creativity of individual and to promote adoption of latest technologies in manufacturing as well as knowledge based innovative MSMEs.
  2. Q. 257 Who are eligible?

    Ans : Any person as individual or MSME, having the innovative ideas are eligible to avail the benefits of this scheme. The person should have innovative sort of idea which can be converted into prototype and further in business activity. The person is being called Incubatee.
  3. Q. 258 Is there any qualification to become Incubatee?

    Ans : There is no qualification bar to become incubatee. However, MSME should have valid Udyog Aadhar Memorandum (UAM) and individual should have Aadhar card number.
  4. Q. 259 How to take benefit of scheme?

    Ans : The person (incubatee) should get attach with any Host Institute (HI) for nurturing of his idea in Business incubator (BI) being set up by HI.
  5. Q. 260 What are the Host Institute, Business Incubator?

    Ans : Host Institute(HI) : Institute which set up Business Incubator and provides the infrastructural and technical facilities for nurturing of new innovative ideas is called Host Institutes (HI).
    Business Incubator(BI): A specific place/workshop located in HI having facilities for nurturing of idea of Incubateeis called Business Incubator.
  6. Q. 261 Who can become Host Institute(HI)?

    Ans : Institutions such as Technical colleges, universities, other professional colleges/institutes, R&D institutes, NGOs involved in relevant activities, EDCs of O/o DC (MSME), MSME-DIs/Technology Centers (TCs), DICs or any institute/organization of Central/State Govt. may apply for HI and set up a Business Incubator (BI).
  7. Q. 262 Role of Host Institutes?

    Ans : Host Institutes will set up Business Incubator (BI) and provides the space, equipment, lab and all the auxiliary support to the incubatee for nurture of his ideas for the business activities.
  8. Q. 263 How to become HI?

    Ans : Eligible institutes can apply through online MIS only and submit details alongwith supporting documents. Details of documents and procedure to apply is given in guiding manuals available in MIS itself.
  9. Q. 264 Which states/UTs can participate in the scheme?

    Ans : Incubatees and eligible institutes of all states/UTs can take benefit of the scheme.However,Institutes in the North East Region will be given priority for supporting BIs.
  10. Q. 265 Which type of financial support are available under the scheme?

    Ans : • Financial support up toRs. 15.00 lakh to HI for nurturing of an idea. This support will be given in two instatements of 70 % and 30 %.
    • Financial support up toRs. 1.00 cr. to HI for procurement of plant and machinery for BI to strengthen their technology related R & D activities.This support will be given in two installments of 50% each
    • Financial support uptoRs. 1.00 cr to HI as Seed fund for converting deserving ideas into start-ups
  11. Q. 266 How the financial assistance can be taken under the scheme?

    Ans : The person (incubatee) should get attach with any Host Institute (HI) for nurturing of his idea in Business incubator (BI) being set up by HI.
  12. Q. 267 Do HIs of previous scheme need to apply again to become HI in new scheme?

    Ans : Yes, HIs of previous Incubation scheme need to apply fresh to become HIs in new scheme as the benefits and MOU terms and conditions of new scheme have been modified.
  13. Q. 268 Can funds be given to Incubatee directly?

    Ans : Financial support for all activities will be given to HI only and no funds can be transferred to incubatee’s account.
  14. Q. 269 Which type of assistance /support incubate can get from BI?

    Ans : Incubatee can get support from BI on all issues related to technology,innovation,mentor, plant & machinery required for nurturing of idea.
  15. Q. 270 Can incubatee take any technical support outside the BI?

    Ans : If any facilities of plant & machinery which are essential for nurturing of idea and same are not available in HI/BI , then incubate can utilize the facilities of machines available in other places . Incubatee can utilize these facilities on pay as usage basis through HI/BI only.
  16. Q. 271 Expenditure on which items is permissible under the scheme for nurturing of idea?

    Ans : Expenditure can be incurred on items essential for nurturing of idea like using plant&machinery, raw material, testing charges, marketing support, charges towards mentoring etc. However, all such components should be mentioned in the proposals which needs approval of competent authority.
  17. Q. 272 Who is approving authority of any proposals seeking financial assistance?

    Ans : Project Monitoring and Advisory Committee (PMAC)headed by DC(MSME) is the final authority for approving proposal as per guidelines of scheme.
  18. Q. 273 Who will examine the proposals initially and what will be flow of proposals?

    Ans : HI will submit its proposals for approval as HI idea, seeking assistance for capital grant and Seed etc. through online MIS which will be examined initially by Implementing Agency (IA) in 15 days. After its initial scrutiny, IA will recommend it to National Monitoring and Implementation Unit (NMIU). A committee at NMIU will further examine and recommend eligible proposals to O/o DC (MSME) for final approval of PMAC.
  19. Q. 274 What is the role of NMIU?

    Ans : A National Monitoring and Implementation Unit (NMIU) shall be setup in the O/o DC(MSME) to take care of facilitation, implementation and monitoring of the scheme involving Implementing Agencies as per directions of PMAC.
  20. Q. 275 Who will be Implementing Agencies (IAs) under the scheme?

    Ans : Implementing Agencies (IAs) shall be at MSME DIs / TCs / Govt. of India/ State Government and its organizations.
  21. Q. 276 Can Incubatee /HI monitor the status of proposal any time?

    Ans : Yes, status of application/proposal can be seen on MIS and outcome of proposals will be communicated to applicant through online MIS.
  22. Q. 277 What is the URL for online submission of proposal?

    Ans : Click here.:

PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) : A Special Micro-Credit Facility for Street Vendors

  1. Q. 278 What is the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme?

    Ans : This is a Central Sector Scheme to facilitate street vendors to access affordable working capital loan for resuming their livelihoods
  2. Q. 279 What is the rationale of the Scheme?

    Ans : The COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihoods of street vendors. They usually work with a small capital base, which they might have consumed during the lockdown. Therefore, credit for working capital to street vendors will be helpful to resume their livelihoods.
  3. Q. 280 What are the objectives of the Scheme?

    Ans : (i) To facilitate working capital loan up to 10,000 at subsidized rate of interest;
    (ii) To incentivize regular repayment of loan; and
    (iii) To reward digital transactions.
  4. Q. 281 What are the salient features of the Scheme?

    Ans : (i) Initial working capital of up to Rs. 10,000/-
    (ii) Interest subsidy on timely/ early repayment @ 7%
    (iii) Monthly cash-back incentive on digital transactions
    (iv) Higher loan eligibility on timely repayment of the first loan.
  5. Q. 282 Who is the target beneficiary for the Scheme?

    Ans : Street vendors/ hawkers vending in urban areas, as on or before March 24, 2020, including the vendors of surrounding peri-urban and rural
  6. Q. 283 Who is a Street Vendor/hawker?

    Ans : Any person engaged in vending of articles, goods, wares, food items or merchandise of daily use or offering services to the public in a street, footpath, pavement etc., from a temporary built up structure or by moving from place to place. The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, pakodas, breads, eggs, textile, apparel, artisan products, books/ stationary etc. and the services include barber shops, cobblers, pan shops, laundry services etc.
  7. Q. 284 Which lending institutions will provide credit?

    Ans : Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, Non-Banking Financial Companies, Micro-Finance Institutions and SHG Banks.
  8. Q. 285 What is the tenure of the Scheme?

    Ans : The Scheme shall be implemented up to March, 2022.
  9. Q. 286 What is the rate and amount of interest subsidy?

    Ans : The rate of interest subsidy 7%. The interest subsidy amount will be credited directly in your account on quarterly basis. In case of early payment, the admissible amount of subsidy will be credited in one go. For a loan of Rs. 10,000, if you pay all the 12 EMIs in time, you will get approximately Rs. 400 as interest subsidy amount.
  10. Q. 287 Do I need to give any collateral to avail this loan?

    Ans : No collateral security is required.
  11. Q. 288 What is the amount of incentive for digital transactions?

    Ans : The on-boarded vendors would be provided with a monthly cashback in the range of Rs. 50 -Rs. 100 as per the following criteria:
    (i) On executing 50 eligible transactions: Rs. 50;
    (ii) On executing the next 50 eligible transactions: Additional Rs. 25; and
    (iii) On executing the next 100 eligible transactions: Additional Rs. 25.
    Each transaction > Rs. 25 will be counted.
  12. Q. 289 I am not familiar with digital transactions. Will there be any capacity building for doing that?

    Ans : An agent from MFI/ payment aggregator will approach you to onboard and help in conducting sample transactions. You will also be provided with a debit card and a QR code.
  13. Q. 290 Is there any incentive for timely/ early repayment of loan?

    Ans : Yes, on timely/ early repayment of loan of initial working capital, a vendor becomes eligible to avail a higher tranche of loan in next cycle.
  14. Q. 291 Is there any penalty for repayment of loan before the scheduled date?

    Ans : There is no penalty for pre-closure of the loan.
  15. Q. 292 How can I enhance my chances of availing this loan?

    Ans : You may become a part of Common Interest Group (CIG) formed by ULB or Joint Liability Group (JLG) formed by a lending institution.
  16. Q. 293 Who all can I approach to avail the facility?

    Ans : You may meet a member of SHG or ALF or CLF or call toll free number.
  17. Q. 294 Will I get Identity Card for use?

    Ans : Yes, you will be issued Provisional Identity Card on approval of loan and permanent CoV/ID will be issued within 30 days.
  18. Q. 295 How long it will take to get the loan approved?

    Ans : Complete process will be automated through a Mobile App and Web Portal. You will be able to check real time status of your application.
    Whole process, if paper/ information is complete, may take less than 30 days.
  19. Q. 296 What is the amount of initial working capital loan?

    Ans : The Initial working capital loan is upto Rs. 10,000/- for a tenure of one year.
  20. Q. 297 I have an Identity Card /Certificate of Vending. How can I apply for the loan?

    Ans : You can approach a Banking Correspondent (BC)/ Agent of Micro Finance Institution (MFI) in your area (ULBs will have the list of these
    persons). They will help you in filling up the application and upload the documents in a Mobile App/ Portal.
  21. Q. 298 How will I know that I am in the surveyed list?

    Ans : You can access this information on the website of Ministry of Housing and Urban Affairs.
  22. Q. 299 My name is in the list of surveyed vendors, but I do not have either Identity Card or Certificate of Vending? Can I avail the loan facility? If yes, what is the process?

    Ans : Yes, you can still avail the Scheme benefits. A Provisional Certificate of Vending would be issued to vendors through an IT based Platform.
    The BC/ Agent will help you in filling up the application and upload the documents in a mobile App/ Portal.
  23. Q. 300 I stay in the surrounding rural area and vend in the city. Am I eligible for the Scheme? If yes, what is the process? Or I am a vendor from the city but not included in the survey. How can I avail benefits of the Scheme?

    Ans : The Scheme is available to vendors of surrounding development/ peri-urban/ rural areas vending in the geographical limits of the cities/ towns and those left out of the survey. If you belong to this category you have to produce one of the following documents to obtain the Letter of Recommendation from ULB/TVC:
    (i) Documents of past loan taken from a bank/ NBFC/ MFI for the purpose of vending;
    (ii) If you are a member of street vendors’ association like NASVI, NHF, SEWA etc., your membership details;
    (iii) Any other documents to prove that you are a vendor; You can also request ULB through a simple application on white paper to conduct local enquiry to ascertain the genuineness of your claim. After receipt of LoR, you may approach BC/ Agent to apply for the loan.
  24. Q. 301 What are the KYC documents required in addition to CoV/ ID / LoR?

    Ans : You may carry anyone of the following documents for KYC purpose:
    (i) Aadhaar Card,
    (ii) Voter’s Identity Card,
    (iii) Driving Licence,
    (iv) MNREGA Card,
    (v) PAN Card.

Support measures undertaken by Govt. in the wake of COVID 19 Pandemic

  1. Q. 302 What is the loan amount under MUDRA Shishu loans and is there any provision for interest subvention?

    Ans : Mudra Shishu loans covers loans upto Rs. 50,000/-. Yes, interest subvention of 2% for prompt payees for a period of 12 months to MUDRA Shishu loanees have been announced recently
    For more details:
  2. Q. 303 What additional finance support will be provided by NABARD to farmers?

    Ans : NABARD will extend additional re-finance support of Rs 30,000 crore to farmers for meeting crop loan requirement of Rural Cooperative Banks and RRBs.
  3. Q. 304 Who are the targeted beneficiaries of the financial support by NABARD?

    Ans : It is estimated that around 3 crore farmers will be benefitted, mostly small and marginal and it will meet their post-harvest Rabi and current Kharif requirements
  4. Q. 305 How MSME Technology Centers are Contributing in fight against COVID19?

    Ans : There are several innovative initiatives have been taking by the Technology Centers under Ministry of Micro, Small and Medium Enterprises. For more details please visit the link:
  5. Q. 306 What is “Companies Fresh Start” Scheme?

    Ans : The Corporate Affairs Ministry (MCA) has come up with the ‘Companies Fresh Start Scheme 2020’ to enable companies make good of any filing-related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity. To provide a similar facility to Limited Liability Partnerships (LLPs), the MCA has also revised the ‘LLP Settlement Scheme, 2020’, which is in vogue today. The Fresh Start scheme and modified LLP Settlement Scheme reduce compliance burden during the unprecedented public health situation caused by Covid-19. For more information on the schemes, please visit
  6. Q. 307 What are benefits being offered under Pradhan Mantri Garib Kalyan Yojana (PMGKY)?

    Ans : Ministry of Labour & Employment has launched Pradhan Mantri Garib Kalyan Yojana (PMGKY) for the poor to help them fight the battle against Corona Virus Pandemic. Under the scheme, the entire employees EPF contributions (12% of wages) and employers’ EPF & EPS contribution (12% of wages), totaling 24% of the monthly wages for the next three months shall be directly paid by the Central Govt. in the EPF accounts (UAN) of employees, who are already members of EPF Scheme, 1952.
    For more details:
  7. Q. 308 Can you please elaborate on provisions made by Ministry of Labour & Employment with respect to Provident Fund?

    Ans : The Ministry of Labour and Employment has been receiving several queries related to provident funds from the beneficiaries. In this regard, a set of Frequently Asked Questions (FAQs) along with clarifications are provided at below mentioned site"
  8. Q. 309 Can an employee withdraw advance from EPF to meet financial requirement during COVID-19 pandemic?

    Ans : As per the government announcement on March 26, 2020, an individual can withdraw a certain amount from their Employees' Provident Fund (EPF) account, if he/she is facing financial problems due to the coronavirus-related lockdown.
    For more details:
  9. Q. 310 From where the migrant workers can take announced rations?

    Ans : States will either directly supply free ration at shelter camps, or issue distress coupons or adopt any suitable method for free distribution of the food grains and channa
    For more information:
  10. Q. 311 What benefits have been announced with respect to Kisan Credit Card scheme?

    Ans : Rs 2 lakh crore credit boost to 2.5 crore farmers under Kisan Credit Card Scheme has been announced. RBI has allowed banks & other financial institutions to offer 3-month Moratorium Period on all Loan & Credit Card Payments.
    For more information:
  11. Q. 312 Where can Rs 1 lakh crore agri infrastructure fund be utilized?

    Ans : As per the announcements, the Rs 1 lakh crore agri infrastructure fund is announced for setting up of farm-gate infrastructure. This fund will be used for setting up cold chains and post-harvest management infrastructure.
    For more information:
  12. Q. 313 Who will be eligible to utilize the agri infrastructure fund?

    Ans : Primary Agricultural Cooperative Societies, Farmers Producer Organizations, Agriculture entrepreneurs, Start-ups, etc. are eligible to utilize the fund.
    For more information:
  13. Q. 314 What are the steps taken for Micro Food Enterprises (MFEs)?

    Ans : Rs 10,000 crores is allocated under the scheme for Formalisation of Micro Food Enterprises (MFE).
    For more information:
  14. Q. 315 Who shall be supported under MFE scheme?

    Ans : The existing micro food enterprises, Farmer Producer Organisations, Self Help Groups and Cooperatives to be supported. The focus will be on women and SC/ST owned units and those in Aspirational districts and a Cluster based approach (e.g. Mango in UP, Tomato in Karnataka, Chilli in Andhra Pradesh, Orange in Maharashtra etc.) will be followed.
    For more information:
  15. Q. 316 What are the benefits under MFE scheme?

    Ans : This scheme will cater to technical upgradation to attain FSSAI food standards, build brands and marketing.
    For more information:
  16. Q. 317 What are the initiatives undertaken by the government to promote food processing industries?

    Ans : Government will implement a scheme of Rs. 500 Cr. for:
    a) Infrastructure development related to Integrated Beekeeping Development Centres, Collection, Marketing and Storage Centres, Post-Harvest & value Addition facilities etc.;
    b) Implementation of standards & Developing traceability system
    c) Capacity building with thrust on women;
    d) Development of quality nucleus stock and bee breeders.

    This will lead to increase in income for 2 lakh beekeepers and quality honey to consumers.
  17. Q. 318 What is the FDI limit in defence manufacturing?

    Ans : FDI limit in the Defence manufacturing under automatic route will be raised from 49% to 74%.
    For more details:
  18. Q. 319 What are the reforms taken in MRO ecosystem?

    Ans : Rationalization of Tax regime for Aircraft Maintenance, Repair and Overhaul (MRO) ecosystem has been announced
    For more details:
  19. Q. 320 What are the steps taken to promote herbal / ayurvedic medicines?

    Ans : It has been announced that 10,00,000 hectares will be covered under Herbal cultivation in next two years with outlay of Rs. 4,000 crores. This will lead to Rs. 5,000 crore income generation for farmers. There will be network of regional Mandis for Medicinal Plants. NMPB will bring 800-hectare area by developing a corridor of medicinal plants along the banks of Ganga. For more details:
  20. Q. 321 What measures have been taken to manage COVID– 19 pandemic?

    Ans : The government has announced setting up of Infectious Diseases Hospital Blocks in all districts and strengthening of lab network and surveillance by Integrated Public Health Labs in all districts & block level Labs & Public Health Unit to manage pandemics. For more details:
  21. Q. 322 What are the reforms at policy level has been taken?

    Ans : Tariff Policy laying out the following reforms will be released:
    a) Consumer Rights
    b) Promote Industry
    c) Sustainability of Sector
    For more details:
  22. Q. 323 What are the measures announced to decriminalize defaults under companies act?

    Ans : Compoundable offences are those offences that are settled by paying fines. Compoundable offences related to shortcomings in CSR reporting, inadequacies in Board report, filing defaults, delay in holding of AGM have been decriminalized. This measure is expected to reduce the burden on criminal courts and NCLT. For more details:
  23. Q. 324 What are the measures announced by the government in the space sector?

    Ans : a) To enable competition in the space sector, government has announced to create policy and an enabling regulatory environment to provide a level playing field for private players in the sector.
    b) Private players will also be allowed to participate in future deep space missions and use ISRO facilities and other relevant assets to improve their capabilities.
    c) Government has also committed to create a liberal geo-spatial data policy that will enable the private players to use the data generated by Indian remote sensing satellites.
    For more details:
  24. Q. 325 What are the measures announced by the government in atomic energy sector?

    Ans : Government has announced following initiatives
    a) Establishment of research reactor in PPP mode for production of medical isotopes – this will lead to affordable treatment for cancer and other diseases.
    b) Establish facilities in PPP mode to use irradiation technology for food preservation – this measure will help farmers
    c) Setting up of Technology Development cum Incubation Centres to link India’s robust start-up ecosystem to nuclear sector and foster synergy between entrepreneurs and research facilities
    For more details:
  25. Q. 326 What are the measures announced by the government to enhance private sector participation in mineral sector?

    Ans : Private sector participation is promoted by introducing structural reforms to boost growth, employment and bring state-of-the-art technology especially in exploration through:
    a) Introduction of a seamless composite exploration-cum-mining-cum-production regime.
    b) Open and transparent auction process for 500 mining blocks.
    c) To enhance Aluminum Industry's competitiveness, joint auction of Bauxite and Coal mineral block will be done. This will also help in reducing electricity costs
    For more details:
  26. Q. 327 What are the policy reforms announced by the government in mineral sector?

    Ans : Following policy reforms have been announced:
    a) Remove distinction between captive and noncaptive mines to allow transfer of mining leases and sale of surplus unused minerals. This will lead to increased efficiency in mining.
    b) Rationalization of stamp duty payable at the time of award of mining leases.
    For more details:
  27. Q. 328 What are the measures announced by the government to provide stimulus in civilian aviation sector?

    Ans : Government has announced that two major initiatives - Efficient Airspace Management and development of more world-class airports.

    a) Restrictions on utilisation of the Indian Air Space will be eased. The ease of restrictions will help in optimal use of airspace, reduction of fuel use, and will save time. The measures will lead to positive environmental impact and bring about total benefits of Rs. 1000 crores per year to the sector

    b) Government will facilitate additional construction of 24 new world-class airports.

    For more details:
  28. Q. 329 What initiatives have been undertaken by Ministry of Civil Aviation to fight against COVID-19?

    Ans : ‘Lifeline Udan’ flights are being operated by MoCA to transport essential medical cargo to remote parts of the country to support India’s war against COVID-19. For more details please visit the link
  29. Q. 330 What are the measures taken by the government to provide relief to contractors?

    Ans : Government had decided to provide relief to contractors working for central agencies like Railways, Ministry of Road Transport and Highways, and CPWD by giving them an extension of 6 months for completion of their contractual obligations, including in respect of EPC and concession agreements. For more details:
  30. Q. 331 What support is provided to promote farming and allied sectors during the lockdown period?

    Ans : The Department of Agriculture, Cooperation & Farmers Welfare under the Ministry of Agriculture & Farmers Welfare has taken numerous initiatives to promote farming and allied sectors during lockdown. The details of the same can be accessed at
  31. Q. 332 What all special provisions have been made for transportation of commodities during COVID -19 situation?

    Ans : For nationwide transportation of essential commodities and other goods, Ministry of Railways has introduced unhindered services of Special Parcel Trains. The details of Parcel Special Trains can be found at
  32. Q. 333 What are the initiatives announced by the government to promote education post Covid-19?

    Ans : Government has announced three initiatives to be launched to promote education through technology - PM eVidya service, Manodarpan, New National Curriculum and Pedagogical framework, and National Foundational Literacy and Numeracy Mission. For more details:
  33. Q. 334 What interventions are undertaken by the government to help livelihoods dependent on plantation activities?

    Ans : To create job opportunities in tribal areas, the Government had decided to use Rs. 6000 crores under Compensatory Afforestation Fund Management and Planning (CAMPA).
    For more details:
  34. Q. 335 What are the announcements made by the government for coal sector?

    Ans : With a view to reduce import and provide coal at affordable rates, the government under “Atmanirbhar Bharat”, has announced plan to commercialize mining in coal sector. For details of the announcement follow:
  35. Q. 336 What measures have been taken by Ministry of Coal to ensure maintenance of critical coal supplies during the COVID-19 lockdown period ?

    Ans : Ministry has ensured that Coal supplies are declared as an Essential service and directed all the officials of Ministry of Coal to work harder to ensure that critical coal supplies are maintained during the lockdown period due to COVID 19 pandemic so that power and other critical sectors are unaffected due to the current situation. For more details please visit the link
  36. Q. 337 What are the measures taken by government to enhance social infrastructure projects?

    Ans : Under Atmanirbhar Bharat Scheme, the government has introduced Viability Gap Funding Scheme of Rs. 8100 Cr to boost private sector investment in Social Infrastructure projects for details of the announcement follow:
  37. Q. 338 Are there any steps taken to improve infrastructure in industrial clusters in country?

    Ans : The government under “Atmanirbhar Bharat Scheme” has announced to implement a scheme for Industrial Cluster Upgradation of common infrastructure facilities in the country. For details of the announcement follow:
  38. Q. 339 Is there any financial assistance provided to dairy cooperatives during the COVID 19 pandemic?

    Ans : To provide financial assistance to farmers during COVID 19 pandemic, Interest subvention @2% per annum to dairy cooperatives for 2020-21 has been launched, also providing additional 2% p.a interest subvention on prompt payment/interest servicing. For details of the announcement please follow:
  39. Q. 340 What measures have been announced by the government to support widely affected fishermen during COVID 19 pandemic?

    Ans : With a view to fill critical gaps in fisheries value chain and support fishermen, the government under “Atmanirbhar Bharat Scheme” has announced Pradhan Mantri Matsya Sampada Yojana (PMMSY) with a view to provide integrated, sustainable, inclusive development of marine and inland fisheries. For details follow:
  40. Q. 341 What are the relief measures announced for real estate sector to deal with the current COVID 19 crisis?

    Ans : With a view to provide immediate relief to the real estate sector, the government has extended registration and completion date for all registered projects up to 6 months. For details kindly visit:
  41. Q. 342 What measures are being taken to provide relief to ensure ease of living for migrant workers and urban poor?

    Ans : With a view to safeguard the migrant laborer and urban poor from forthcoming crisis situation, the government has planned to implement Affordable Rental Housing scheme under PPP mode. For details, kindly visit:
  42. Q. 343 Till when is the Credit Linked Subsidy Scheme for Middle Income Group under PMAY(Urban) been extended?

    Ans : As per the announcement under “Atmanirbhar Bharat Scheme”, the Credit Linked Subsidy Scheme for Middle Income Group (annual Income between Rs 6 and 18 lakhs) will be extended up to March 2021. For more details about the announcement visit:
  43. Q. 344 What are some COVID – 19 related funding opportunities available for Start Ups, Innovators, and Indian Companies?

    Ans : National Science and Technology Entrepreneurship Development Board under the Ministry of Science and Technology, GoI has launched Centre for Augmenting War with COVID-19 Health Crisis (CAWACH) initiative to invite Start Ups, Innovators and Indian Companies to provide high impact products based on scalable innovations to address challenges faced during COVID -19 by the country. More details on the initiative can be found at
  44. Q. 345 Is there any special provision made for North eastern States to meet the COVID 19 crisis?

    Ans : The Ministry of Development of North Eastern Region has announced an additional financial support of Rs. 25 crores to manage the COVID Outbreak effectively. More information can be found on -
  45. Q. 346 Is there any specific initiative that has been taken by GeM in terms of Public Procurement?

    Ans : GeM has taken number of initiatives for procurement of goods and services by Government departments in the fight against COVID-19 Pandemic. A dedicated page for COVID-19 has been created on the portal. You can find more information by visiting this link-
  46. Q. 347 Is there any scheme/incentive offered for augmenting manufacturing capacity of essential medical equipment, drugs etc.?

    Ans : Government of India has announced new schemes to promote development of pharmaceutical industry and development of medical devices. More details can be found at -
  47. Q. 348 Has there been any procedural changes w.r.t to filing income tax return?

    Ans : To enable income taxpayers to avail full benefits of various timeline extensions granted by the Government of India due to Covid-19 pandemic situations, the CBDT is revising the return forms for FY 2019-20 (Assessment Year 2020-21) which shall be notified by the end of this month. For more details please follow.
  48. Q. 349 What amendments have been announced by the Government in FDI policy for curbing opportunistic takeovers/acquisitions of Indian companies due to the current COVID-19 pandemic?

    Ans : The Government of India has reviewed the extant Foreign Direct Investment (FDI) policy for curbing opportunistic takeovers/acquisitions of Indian companies due to the current COVID-19 pandemic and amended extant FDI policy as contained in Consolidated FDI Policy, 2017. For more details please visit:

Distressed Asset Fund - Subordinated Debt for Stressed MSMEs (DAF-SDSM) / Credit Guarantee Scheme for Subordinate Debt (CGSSD)

  1. Q. 350 What is Distressed Asset Fund - Subordinated Debt for Stressed MSMEs?

    Ans : The “Distressed Asset Fund - Subordinated Debt for Stressed MSMEs” is a scheme framed by Ministry of MSME under which credit facility would be provided to the Promoters of the stressed MSMEs by Scheduled Commercial Banks (SCBs) for infusing the same as equity/quasi equity/ sub-debt in the unit.
  2. Q. 351 What is the Credit Guarantee Scheme for Subordinate Debt (CGSSD)?

    Ans : Credit Guarantee Scheme for Subordinate Debt (CGSSD) (hereinafter referred to as “Scheme”) being operated by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides guarantee coverage to Member Lending Institutions (MLIs) for the credit facility extended to the to the eligible MSMEs under the above mentioned scheme.
  3. Q. 352 What is the objective of the Scheme (CGSSD)?

    Ans : The objective of the scheme is to provide credit facility through lending institutions to the promoters of stressed MSMEs viz. SMA-2 and NPA accounts who are eligible for restructuring as per RBI guidelines on the books of the Lending institutions. The promoter would infuse the credit in the MSME as quasi equity or sub-debt.
  4. Q. 353 How do we define MSME?

    Ans : Micro, Small and Medium Enterprises defined under the MSMED Act from time to time.
  5. Q. 354 Which are the MSME’s constitution included under the Scheme?

    Ans : MSME units such as Individuals / Proprietorship, LLP, Partnership, Private Limited Company or registered company are eligible to be covered under the scheme.