Question
As per RBI guidelines, banks must dispose of all credit
applications from Micro and Small Enterprises (MSEs) seeking loans up to ₹25 lakh within what maximum time frame?Solution
The Reserve Bank of India (RBI) has issued clear timelines to ensure timely and adequate flow of credit to the MSME sector: • For loan applications up to ₹25 lakh → Banks are required to process and communicate credit decisions within 14 working days. • For loan applications above ₹25 lakh and up to ₹5 crore → Banks must do so within 21 working days. This guideline ensures faster turnaround times for smaller enterprises that depend on quick credit to maintain operations and growth. Correct Answer: 14 working days (Option 4)
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