Question 93 from UPSC CSE 2016 - Current
Affairs

Question

With reference to 'Stand Up India Scheme', which of the following statements is/are correct?
1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.
2. It provides for refinance through SIDBI.
Select the correct answer using the code given below.

Accepted Answer

Correct Option: C. Both 1 and 2

Strategy: Recall the fundamental objectives and operational mechanisms of the 'Stand Up India Scheme' to verify statements about its beneficiaries and refinance institution.

Key Info: ## Stand Up India Scheme
Launched on April 5, 2016, by the Ministry of Finance, Government of India. Its primary objective is to promote entrepreneurship at the grass-root level by facilitating bank loans to Scheduled Caste (SC) or Scheduled Tribe (ST) borrowers and at least one woman borrower per bank branch for setting up a greenfield enterprise.

- **Target Beneficiaries:** SC/ST and women entrepreneurs.
- **Loan Purpose:** For setting up a greenfield enterprise (first-time venture) in manufacturing, services, or the trading sector.
- **Loan Amount:** Provides for a composite loan between Rs 10 lakh and Rs 1 crore, inclusive of working capital.
- **Refinance:** The scheme provides refinance facility through Small Industries Development Bank of India (SIDBI) with an initial amount of Rs 10,000 crore.
- **Implementation:** Facilitated through all Scheduled Commercial Banks (SCBs).
- **Other Support:** The scheme also provides handholding support through various agencies for training, credit literacy, skill development, and market access.

## Small Industries Development Bank of India (SIDBI)
Established on April 2, 1990, under an Act of the Indian Parliament, as the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector and for coordination of the functions of institutions engaged in similar activities.

- It acts as a refinancing institution for banks and state-level financial institutions engaged in financing MSMEs.
- SIDBI is actively involved in the development of the MSME sector through various credit and non-credit initiatives, including several government schemes like the Stand Up India Scheme and Mudra Yojana.

Answer

Option A: 1 only

Answer

Option B: 2 only

Answer

Option D: Neither 1 nor 2

With reference to 'Stand Up India Scheme', which of the following statements is/are correct? Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs. It provides for refinance through SIDBI. Select the correct answer using the code given below.

With reference to 'Stand Up India Scheme', which of the following statements is/are correct?

Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.

It provides for refinance through SIDBI.
Select the correct answer using the code given below.