MCQs 2026

The KFS is a standardized document that provides the borrower with all essential information, including the Annual Percentage Rate (APR), to ensure transparency.

RBI guidelines mandate that all loan repayments must be executed directly between the borrower's bank account and the Regulated Entity's (bank/NBFC) account.

The Governor of the Reserve Bank of India serves as the ex-officio Chairperson of the Monetary Policy Committee.

Increasing or maintaining a high repo rate makes borrowing expensive, which reduces liquidity in the economy and helps in curbing inflation.

The Monetary Policy Committee (MPC) is a statutory body under the RBI Act, 1934, responsible for fixing the benchmark interest rate in India.

Mudra loans are disbursed through a wide network of financial institutions including Public Sector Banks, Private Sector Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Micro Finance Institutions (MFIs), and Non-Banking Financial Companies (NBFCs).

Mudra loans are provided without requiring collateral or third-party guarantees, making them accessible to a wider range of small entrepreneurs who may lack assets to pledge.

The three categories of Mudra loans are Shishu (loans up to ₹50,000), Kishore (loans from ₹50,001 to ₹5 lakh), and Tarun (loans from ₹5,00,001 to ₹10 lakh). 'Yuva' is not a category under PMMY.

Mudra loans are categorized into Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 Lakh), and Tarun (₹5,00,001 to ₹10 Lakh). The maximum loan amount is ₹10 Lakh.

PMMY aims to provide collateral-free loans to small entrepreneurs for income-generating activities, thereby fostering entrepreneurship and employment generation.