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    Question

    Which of the following credit facility aimed to i

    ncrease flow of credit to individuals for entrepreneurial activity in the non-farm sector , which is eligible under priority sector guidelines?
    A MSME Business Card Correct Answer Incorrect Answer
    B MSE Credit Card (MCC) Correct Answer Incorrect Answer
    C Enterprise Support Card Correct Answer Incorrect Answer
    D Kisan Credit Card (KCC) Correct Answer Incorrect Answer
    E General Credit Card (GCC) Correct Answer Incorrect Answer

    Solution

    Banks can issue General Credit Cards (GCC) for individuals/entities with working capital facilities for non-farm entrepreneurial activities, classified under priority sector lending.   Under GCC, t here will be  no ceiling  on the loan amount as long as the loan is for the purpose of non-farm entrepreneurial activity and is otherwise eligible for classification as priority sector. The limits should be fixed on the basis of risk assessment .  

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