What corpus has the Union Cabinet approved for the Credit Guarantee Fund for Micro Units?
- A.Rs 3,000 crore
- B.Rs 4,111 crore
- C.Rs 5,000 crore
- D.Rs 7,500 crore
Correct answer
Explanation
The correct answer is Rs 5,000 crore. The Cabinet cleared this corpus while extending the Credit Guarantee Fund for Micro Units up to 31 March 2031, and the Ministry of Finance expects it to support Mudra lending of Rs 12.6 lakh crore over the five years. Option A, Rs 3,000 crore, is smaller than the sanctioned amount and appears nowhere in the decision. Option B, Rs 4,111 crore, is the credit guarantee corpus cleared the same day for a different scheme aimed at women and at Scheduled Caste and Scheduled Tribe founders, so it is a trap for anyone revising the two decisions together. Option D, Rs 7,500 crore, overstates the figure. Candidates should also recall that the guarantee itself flows through the National Credit Guarantee Trustee Company Limited.
Read the full article: Cabinet Clears Rs 5,000 Crore CGFMU Corpus for Mudra Loans
Practice Questions
Through which body is the CGFMU guarantee extended to lending institutions?
- A.Small Industries Development Bank of India
- B.National Credit Guarantee Trustee Company Limited
- C.National Bank for Agriculture and Rural Development
- D.Reserve Bank of India
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The Credit Guarantee Fund for Micro Units gives lending institutions cover against default risk, and that cover is routed through NCGTC, which acts as the trustee for the fund.
Read the full explanation →Under CGFMU, the annual guarantee fee for lending institutions has been reduced to what level?
- A.0.25 per cent
- B.0.50 per cent
- C.0.75 per cent
- D.1.25 per cent
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A lower fee reduces the cost a lending institution has to carry for buying guarantee cover, and that cost is ultimately reflected in what the micro borrower pays.
Read the full explanation →On which stock exchanges is the equity share capital of the acquirer listed?
- A.Only the National Stock Exchange of India
- B.Only the Bombay Stock Exchange
- C.The Bombay Stock Exchange and the National Stock Exchange of India
- D.The Calcutta Stock Exchange and the Bombay Stock Exchange
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Kotak Mahindra Bank is described as a scheduled commercial bank licensed by the central bank to carry on banking business, with its equity share capital listed on both these exchanges.
Read the full explanation →Which regulator approved the acquisition of a part of Deutsche Bank India business by Kotak Mahindra Bank?
- A.Securities and Exchange Board of India
- B.Reserve Bank of India
- C.Competition Commission of India
- D.Insurance Regulatory and Development Authority of India
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The competition regulator cleared the proposed combination, which covers both the purchase of the target business and the related referral arrangements between affiliates of the two sides.
Read the full explanation →Which business of Deutsche Bank in India is being acquired by Kotak Mahindra Bank?
- A.Corporate and investment banking
- B.Retail, private banking and wealth management
- C.Custody and fund accounting
- D.Treasury and foreign exchange dealing room
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The target business is precisely the retail banking and private banking segment together with the wealth management arm that the seller runs through its branches in India, and it is moving as a going concern on a slump sale basis.
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