2016 GS Paper I, all questions

UPSC Prelims 2016 · GS Paper I

Question 73: Economy and Social Development

Pradhan Mantri MUDRA Yojana is aimed at

abringing the small entrepreneurs into formal financial system
bproviding loans to poor farmers for cultivating particular crops
cproviding pensions to old and destitute persons
dfunding the voluntary organizations involved in the promotion of skill development and employment generation

AnswerUPSC’s answer is (a).

Pradhan Mantri MUDRA Yojana, launched in 2015, provided loans of up to Rs 10 lakh at the time to non-corporate, non-farm small and micro enterprises through banks, NBFCs and microfinance institutions, in three categories: Shishu, Kishor and Tarun. Its aim is to bring small entrepreneurs into the formal financial system. It is not a crop-loan scheme, a pension scheme or a grant scheme for voluntary organisations.

Why each option is right or wrong
  • (a) Right: MUDRA brings small entrepreneurs into the formal financial system.
  • (b) Crop loans to farmers come under other schemes.
  • (c) Pensions for the old and destitute are a different scheme.
  • (d) MUDRA does not fund voluntary organisations for skill development.

Worth knowing: The MUDRA loan ceiling has since been raised above Rs 10 lakh (to Rs 20 lakh under a new 'Tarun Plus' category in 2024); the aim of bringing small entrepreneurs into the formal system is unchanged.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

Practise this paper timedPrevious questionNext question

Source: UPSC, Civil Services (Preliminary) Examination 2016, General Studies Paper I, Series A. The paper on upsc.gov.in.