Question
The Prime Minister’s Task Force on MSMEs has set
annual lending targets for banks. What is the recommended year-on-year growth in credit and accounts for micro enterprises?Solution
The Prime Minister’s Task Force on MSMEs, formed to strengthen credit flow and support the growth of the MSME sector, recommended specific annual growth targets for banks to ensure inclusive credit access for micro enterprises: • Credit growth: Banks should achieve a 20% year-on-year growth in lending to micro enterprises. • Account growth: The number of micro enterprise accounts should increase by 10% annually. This dual focus ensures both higher lending volumes and broader outreach, thereby supporting financial inclusion and entrepreneurship at the grassroots level. Correct Answer: 20% growth in credit and 10% growth in accounts (Option 3)
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