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      Question

      How is working capital provided by banks calculated

      under the Turnover Method?
      A 10% of turnover Correct Answer Incorrect Answer
      B 15% of turnover Correct Answer Incorrect Answer
      C 20% of turnover Correct Answer Incorrect Answer
      D 25% of turnover Correct Answer Incorrect Answer
      E 30% of turnover Correct Answer Incorrect Answer

      Solution

      Banks provide working capital equal to 20% of the projected annual turnover under the Turnover Method (recommended by the Nayak Committee) to simplify access for MSMEs with smaller credit needs.

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