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    Question

    As per RBI guidelines, banks must dispose of all credit

    applications from Micro and Small Enterprises (MSEs) seeking loans up to â‚ą25 lakh within what maximum time frame?
    A 7 working days Correct Answer Incorrect Answer
    B 10 working days Correct Answer Incorrect Answer
    C 12 working days Correct Answer Incorrect Answer
    D 14 working days Correct Answer Incorrect Answer
    E 21 working days Correct Answer Incorrect Answer

    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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