UPSC CSE Prelims
Economy & Finance Previous Year Questions (PYQs)
Showing solved Previous Year Questions for Chapter: Economy & Finance
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Pradhan Mantri MUDRA Yojana is aimed at -
Detailed Explanation:
Pradhan Mantri MUDRA Yojana (PMMY) was launched in 2015 to provide collateral-free loans to micro and small enterprises in the non-farm sector, bringing them into the formal financial system.
The scheme offers loans under three categories: Shishu (up to ₹50,000), Kishore (₹50,000 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh), targeting unbanked entrepreneurs, street vendors, small traders, and self-employed individuals.
✅ Option 1 – Correct: MUDRA's primary aim is financial inclusion by bringing small entrepreneurs into formal banking channels.
❌ Option 2 – Incorrect: It focuses on non-farm sector enterprises, not crop cultivation loans for farmers.
❌ Option 3 – Incorrect: Pension schemes like PMVVY or NPS handle old-age pensions, not MUDRA.
❌ Option 4 – Incorrect: MUDRA provides direct loans to entrepreneurs, not funding to voluntary organizations.
What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?
- It enables the beneficiaries to draw their subsidies and social security benefits in their villages.
- It enables the beneficiaries in rural areas to make deposits and withdrawals.
Select the correct answer using the code given below.
Detailed Explanation:
✅ Statement 1 – Correct: Business Correspondents (Bank Saathi) enable beneficiaries to withdraw government subsidies and social security benefits (DBT) directly in their villages through Electronic Benefit Transfer (EBT), eliminating the need to travel to distant bank branches.
✅ Statement 2 – Correct: BCs facilitate basic banking services in branchless areas including deposits, withdrawals, remittances, and balance enquiry, promoting financial inclusion in rural and remote locations where setting up full-fledged branches is not viable.
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