Under the SRI Fund structure, how does the Mother Fund invest in micro, small and medium enterprises?
- A.Directly in each enterprise
- B.Only through empanelled Daughter Funds
- C.Through public sector banks
- D.Through state governments
Correct answer
Explanation
The correct answer is only through empanelled Daughter Funds. The SRI Fund has a two-tier design: the Mother Fund does not put money into an enterprise itself, it invests in Daughter Funds, and those funds then take equity in the enterprises. Seventy-two such Daughter Funds have been empanelled so far. They make their choices on commercial grounds, weighing viability, the growth record of the previous three years and a business plan that shows positive cash flows, and the government deliberately stays at arm's length from their day-to-day investment decisions. That rules out option A, since nothing flows directly from the Mother Fund to a firm. Public sector banks in option C and state governments in option D have no role in this chain, though NSIC Venture Capital Fund Limited is the special purpose vehicle and SBI Ventures Limited is the investment manager.
Read the full article: SRI Fund Has Backed 824 MSMEs with Rs 21,330 Crore
Practice Questions
How much has the Self-Reliant India Fund invested in MSMEs so far, and in how many enterprises?
- A.Rs 8,305 crore in 824 MSMEs
- B.Rs 21,330 crore in 824 MSMEs
- C.Rs 48,000 crore in 720 MSMEs
- D.Rs 10,000 crore in 1,824 MSMEs
Show answer
The correct answer is Rs 21,330 crore in 824 MSMEs, of which roughly three-quarters are micro enterprises.
Read the full explanation →Under which campaign of the Ministry of MSME was the awareness workshop on the SRI Fund for women-led MSMEs organised?
- A.Yashashvini Campaign
- B.Udyam Assist Campaign
- C.Stand Up India Campaign
- D.Mahila Udyam Campaign
Show answer
The awareness workshop on the Self-Reliant India Fund for women-led enterprises was held under it on 4 November 2026 at Kartavya Bhawan 3 in New Delhi, chaired by Secretary (MSME) Shri Bharat Khera, and brought together over sixty women entrepreneurs with officials, industry associations and the Daughter Funds.
Read the full explanation →Which state received the largest amount in this instalment of tax devolution?
- A.Maharashtra
- B.Bihar
- C.Uttar Pradesh
- D.West Bengal
Show answer
In the state-wise break-up published with the release, Uttar Pradesh was allotted the largest amount of the Rs 1,09,019 crore shared among twenty-eight states, which follows from its being the biggest claimant on the states' share of central taxes.
Read the full explanation →Why did the Union Government advance the November instalment of tax devolution?
- A.Because the Finance Commission's term was ending
- B.In view of the festive season and to help states accelerate capital spending
- C.To offset a shortfall in GST compensation
- D.Because states had failed to meet borrowing limits
Show answer
The Ministry of Finance said the early transfer would also let states finance expenditure related to development and welfare.
Read the full explanation →How much tax devolution did the Union Government release to state governments on 5 November 2026?
- A.Rs 89,086 crore
- B.Rs 1,09,019 crore
- C.Rs 1,78,173 crore
- D.Rs 2,09,019 crore
Show answer
This was the regular instalment of tax devolution that the Union Government transferred to the state governments, and it was released on 5 November 2026.
Read the full explanation →