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      Question

      As per the UK Sinha Committee, which of the following

      measures was proposed to improve the financing of MSMEs?
      A Reduction of GST rates for MSMEs Correct Answer Incorrect Answer
      B Establishment of a "Fund of Funds" to provide equity support to MSMEs Correct Answer Incorrect Answer
      C Tax exemptions on all MSME-related transactions Correct Answer Incorrect Answer
      D Introduction of direct lending programs by the Reserve Bank of India Correct Answer Incorrect Answer
      E Providing MSMEs with an automatic credit line through public sector banks Correct Answer Incorrect Answer

      Solution

      One of the key recommendations of the UK Sinha Committee was the establishment of a "Fund of Funds" to provide equity support to MSMEs. This fund would help MSMEs access venture capital and private equity, facilitating their growth and innovation.

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