New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    As per the Nayak committee what is the recommended

    absolute credit limit for bank finance for MSE units for working capital finance?
    A Rs.1 crore Correct Answer Incorrect Answer
    B Rs.2 crore Correct Answer Incorrect Answer
    C Rs.2.5 crore Correct Answer Incorrect Answer
    D Rs.3 crore Correct Answer Incorrect Answer
    E Rs.5 crore Correct Answer Incorrect Answer

    Solution

    As per Nayak Committee Report, working capital limits to MSE units is computed on the basis of minimum 20% of their estimated turnover up to credit limit of ₹5 crore. This assessment takes into consideration a working capital cycle of 90 days.

    Practice Next

    Relevant for Exams: