UPSC Current Affairs Quiz : 6 March 2025

The Current Affairs Quiz 2024 is a daily quiz based on the DAILY CURRENT AFFAIRS AND PIB SUMMARY from the previous day, as posted on our website. It covers all relevant news sources and is designed to test your knowledge of current events. Solving these questions will help you retain both concepts and facts relevant to the UPSC IAS civil services exam.

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• Question 1 of 10 1. Question 1 points Morocco shares its bored with which of the following water bodies? Mediterranean Sea Atlantic Ocean Caspian Sea How many of the above options is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B Option 3 is incorrect. Morocco, a North African country bordering the Atlantic Ocean and the Mediterranean Sea, is distinguished by its Berber, Arabian and European cultural influences. Incorrect Solution: B Option 3 is incorrect. Morocco, a North African country bordering the Atlantic Ocean and the Mediterranean Sea, is distinguished by its Berber, Arabian and European cultural influences.

#### 1. Question

Morocco shares its bored with which of the following water bodies?

• Mediterranean Sea

• Atlantic Ocean

• Caspian Sea

How many of the above options is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

Option 3 is incorrect.

Morocco, a North African country bordering the Atlantic Ocean and the Mediterranean Sea, is distinguished by its Berber, Arabian and European cultural influences.

Solution: B

Option 3 is incorrect.

Morocco, a North African country bordering the Atlantic Ocean and the Mediterranean Sea, is distinguished by its Berber, Arabian and European cultural influences.

• Question 2 of 10 2. Question 1 points Consider the following statements regarding Territorial Army (TA). The Territorial Army (TA) is a military reserve force composed of part-time volunteers who provide support services to the Indian Army. They are requested by ministries and state governments for various roles, including plantation drives, petroleum supply, oil exploration, and protection of critical infrastructure. They have participated in all of India’s wars since the country’s independence. How many of the above statements is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: C The Indian Territorial Army, established in 1949, is an auxiliary military organization of the Indian Army, often requested by ministries and state governments for various roles, including plantation drives, petroleum supply, oil exploration, and protection of critical infrastructure. The primary role of the TA is to “relieve the regular army from static duties and assist civil administration in dealing with natural calamities and maintenance of essential services” and to “provide units for the regular army as and when required”. The TA has participated in all of India’s wars since the country’s independence. Incorrect Solution: C The Indian Territorial Army, established in 1949, is an auxiliary military organization of the Indian Army, often requested by ministries and state governments for various roles, including plantation drives, petroleum supply, oil exploration, and protection of critical infrastructure. The primary role of the TA is to “relieve the regular army from static duties and assist civil administration in dealing with natural calamities and maintenance of essential services” and to “provide units for the regular army as and when required”. The TA has participated in all of India’s wars since the country’s independence.

#### 2. Question

Consider the following statements regarding Territorial Army (TA).

• The Territorial Army (TA) is a military reserve force composed of part-time volunteers who provide support services to the Indian Army.

• They are requested by ministries and state governments for various roles, including plantation drives, petroleum supply, oil exploration, and protection of critical infrastructure.

• They have participated in all of India’s wars since the country’s independence.

How many of the above statements is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: C

The Indian Territorial Army, established in 1949, is an auxiliary military organization of the Indian Army, often requested by ministries and state governments for various roles, including plantation drives, petroleum supply, oil exploration, and protection of critical infrastructure.

The primary role of the TA is to “relieve the regular army from static duties and assist civil administration in dealing with natural calamities and maintenance of essential services” and to “provide units for the regular army as and when required”.

The TA has participated in all of India’s wars since the country’s independence.

Solution: C

The TA has participated in all of India’s wars since the country’s independence.

• Question 3 of 10 3. Question 1 points How is the ‘creamy layer’ determination different for children of government employees compared to those from the private sector? (a) There is no difference in determination between the two sectors (b) Private sector employees' children are never in the creamy layer (c) For government employees, it's based on rank; for private sector, it's based on income (d) Government employees' children are always in the creamy layer Correct Solution: C The determination of ‘creamy layer’ status differs between government and private sector employees’ children. For government employees, the criteria are primarily based on the rank or position of the parent in service. For instance, children of Group A officers or those promoted to Group A before age 40 are considered part of the creamy layer. In contrast, for private sector employees, the determination is based on the parents’ income. This distinction recognizes the different structures and compensation systems in government and private sectors, aiming to create a fair assessment of socio-economic status across various employment types. Incorrect Solution: C The determination of ‘creamy layer’ status differs between government and private sector employees’ children. For government employees, the criteria are primarily based on the rank or position of the parent in service. For instance, children of Group A officers or those promoted to Group A before age 40 are considered part of the creamy layer. In contrast, for private sector employees, the determination is based on the parents’ income. This distinction recognizes the different structures and compensation systems in government and private sectors, aiming to create a fair assessment of socio-economic status across various employment types.

#### 3. Question

How is the ‘creamy layer’ determination different for children of government employees compared to those from the private sector?

• (a) There is no difference in determination between the two sectors

• (b) Private sector employees' children are never in the creamy layer

• (c) For government employees, it's based on rank; for private sector, it's based on income

• (d) Government employees' children are always in the creamy layer

• Solution: C

The determination of ‘creamy layer’ status differs between government and private sector employees’ children. For government employees, the criteria are primarily based on the rank or position of the parent in service. For instance, children of Group A officers or those promoted to Group A before age 40 are considered part of the creamy layer. In contrast, for private sector employees, the determination is based on the parents’ income. This distinction recognizes the different structures and compensation systems in government and private sectors, aiming to create a fair assessment of socio-economic status across various employment types.

• Solution: C

• Question 4 of 10 4. Question 1 points Consider the following statements in the context of Lightning characteristics and occurrence in India Lightning is a rapid discharge of atmospheric electricity. Eastern and central India experience the highest cloud-to-ground strikes. Palm trees provide immediate protection against lightning strikes. How many of the above statements is/are incorrect? (a) Only one (b) Only two (c) All three (d) None Correct Solution: A Statement 3 is incorrect. Lightning is indeed a rapid discharge of electricity in the atmosphere. This occurs when there’s a buildup of electrical charge within clouds or between clouds and the ground, which is then suddenly released, creating the flash we see as lightning. According to the Annual Lightning Report 2023-2024 published by CROPC and IMD, eastern and central India do experience the highest number of cloud-to-ground (CG) lightning strikes. This is likely due to the specific atmospheric conditions prevalent in these regions. Palm tree needs at least 15 to 20 years to attain a height of 20 feet. Therefore, they do not provide immediate protection against lightning strikes, but rather a long-term solution. Incorrect Solution: A Statement 3 is incorrect. Lightning is indeed a rapid discharge of electricity in the atmosphere. This occurs when there’s a buildup of electrical charge within clouds or between clouds and the ground, which is then suddenly released, creating the flash we see as lightning. According to the Annual Lightning Report 2023-2024 published by CROPC and IMD, eastern and central India do experience the highest number of cloud-to-ground (CG) lightning strikes. This is likely due to the specific atmospheric conditions prevalent in these regions. Palm tree needs at least 15 to 20 years to attain a height of 20 feet. Therefore, they do not provide immediate protection against lightning strikes, but rather a long-term solution.

#### 4. Question

Consider the following statements in the context of Lightning characteristics and occurrence in India

• Lightning is a rapid discharge of atmospheric electricity.

• Eastern and central India experience the highest cloud-to-ground strikes.

• Palm trees provide immediate protection against lightning strikes.

How many of the above statements is/are incorrect?

• (a) Only one

• (b) Only two

• (c) All three

Solution: A

Statement 3 is incorrect.

Lightning is indeed a rapid discharge of electricity in the atmosphere. This occurs when there’s a buildup of electrical charge within clouds or between clouds and the ground, which is then suddenly released, creating the flash we see as lightning.

According to the Annual Lightning Report 2023-2024 published by CROPC and IMD, eastern and central India do experience the highest number of cloud-to-ground (CG) lightning strikes. This is likely due to the specific atmospheric conditions prevalent in these regions.

Palm tree needs at least 15 to 20 years to attain a height of 20 feet. Therefore, they do not provide immediate protection against lightning strikes, but rather a long-term solution.

Solution: A

Statement 3 is incorrect.

Palm tree needs at least 15 to 20 years to attain a height of 20 feet. Therefore, they do not provide immediate protection against lightning strikes, but rather a long-term solution.

• Question 5 of 10 5. Question 1 points Consider the following statements regarding White phosphorus. White phosphorus is a highly toxic, wax-like substance known for its ability to burn at extremely high temperatures. It is used by militaries to create smokescreens due to its fast-spreading fires and thick smoke production. It is categorized as an “incendiary weapon” and is banned by international conventions. (a) Only one (b) Only two (c) All three (d) None Correct Solution: B Statement 3 is incorrect. About White phosphorus: It is a highly toxic, wax-like substance known for its ability to burn at extremely high temperatures, exceeding 800 degrees Celsius (1,500 degrees Fahrenheit). It can melt metal and is often used by militaries to create smokescreensdue to its fast-spreading fires and thick smoke production that can last for about seven minutes. White phosphorus is harmful to humans and can cause severe burns, penetrating down to the bone.The chemicals can be absorbed by the body, leading to dysfunction in multiple organs, including the liver, kidneys, and heart White phosphorus munitions can be delivered through artillery shells, bombs, rockets, or grenades. This substance is colourless, white, or yellow and emits a garlic-like odour. While white phosphorus is not banned by international conventions, it is not categorized as an “incendiary weapon” intended to cause fires or burns. Instead, it is considered a multipurpose munition. Protocol III of the 1980 Convention on Certain Conventional Weapons prohibits incendiaries or the use of other substances to attack civilian populations, but it allows militaries to argue that white phosphorus is used only as a smokescreen, signal, or to illuminate a target. Incorrect Solution: B Statement 3 is incorrect. About White phosphorus: It is a highly toxic, wax-like substance known for its ability to burn at extremely high temperatures, exceeding 800 degrees Celsius (1,500 degrees Fahrenheit). It can melt metal and is often used by militaries to create smokescreensdue to its fast-spreading fires and thick smoke production that can last for about seven minutes. White phosphorus is harmful to humans and can cause severe burns, penetrating down to the bone.The chemicals can be absorbed by the body, leading to dysfunction in multiple organs, including the liver, kidneys, and heart White phosphorus munitions can be delivered through artillery shells, bombs, rockets, or grenades. This substance is colourless, white, or yellow and emits a garlic-like odour. While white phosphorus is not banned by international conventions, it is not categorized as an “incendiary weapon” intended to cause fires or burns. Instead, it is considered a multipurpose munition. Protocol III of the 1980 Convention on Certain Conventional Weapons prohibits incendiaries or the use of other substances to attack civilian populations, but it allows militaries to argue that white phosphorus is used only as a smokescreen, signal, or to illuminate a target.

#### 5. Question

Consider the following statements regarding White phosphorus.

• White phosphorus is a highly toxic, wax-like substance known for its ability to burn at extremely high temperatures.

• It is used by militaries to create smokescreens due to its fast-spreading fires and thick smoke production.

• It is categorized as an “incendiary weapon” and is banned by international conventions.

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

Statement 3 is incorrect.

About White phosphorus:

• It is a highly toxic, wax-like substance known for its ability to burn at extremely high temperatures, exceeding 800 degrees Celsius (1,500 degrees Fahrenheit).

• It can melt metal and is often used by militaries to create smokescreensdue to its fast-spreading fires and thick smoke production that can last for about seven minutes.

• White phosphorus is harmful to humans and can cause severe burns, penetrating down to the bone.The chemicals can be absorbed by the body, leading to dysfunction in multiple organs, including the liver, kidneys, and heart

• White phosphorus munitions can be delivered through artillery shells, bombs, rockets, or grenades. This substance is colourless, white, or yellow and emits a garlic-like odour.

While white phosphorus is not banned by international conventions, it is not categorized as an “incendiary weapon” intended to cause fires or burns.

Instead, it is considered a multipurpose munition. Protocol III of the 1980 Convention on Certain Conventional Weapons prohibits incendiaries or the use of other substances to attack civilian populations, but it allows militaries to argue that white phosphorus is used only as a smokescreen, signal, or to illuminate a target.

Solution: B

Statement 3 is incorrect.

About White phosphorus:

• It is a highly toxic, wax-like substance known for its ability to burn at extremely high temperatures, exceeding 800 degrees Celsius (1,500 degrees Fahrenheit).

• It can melt metal and is often used by militaries to create smokescreensdue to its fast-spreading fires and thick smoke production that can last for about seven minutes.

• White phosphorus munitions can be delivered through artillery shells, bombs, rockets, or grenades. This substance is colourless, white, or yellow and emits a garlic-like odour.

While white phosphorus is not banned by international conventions, it is not categorized as an “incendiary weapon” intended to cause fires or burns.

• Question 6 of 10 6. Question 1 points What physiological factor is primarily responsible for the athletic performance differences between men and women? (a) Bone density (b) Muscle fiber type (c) Chromosome count (d) Circulating testosterone levels Correct Solution: D Circulating testosterone is considered the primary factor responsible for athletic performance differences between men and women. Testosterone has been shown to increase muscle mass and strength, bone size and density, and circulating hemoglobin levels. These physiological changes contribute significantly to athletic performance advantages. While other factors like bone density and muscle fiber type are influenced by testosterone, they are secondary effects rather than the primary cause. The hormone’s direct impact on multiple physiological systems makes it the key differentiator in athletic performance between sexes. Incorrect Solution: D Circulating testosterone is considered the primary factor responsible for athletic performance differences between men and women. Testosterone has been shown to increase muscle mass and strength, bone size and density, and circulating hemoglobin levels. These physiological changes contribute significantly to athletic performance advantages. While other factors like bone density and muscle fiber type are influenced by testosterone, they are secondary effects rather than the primary cause. The hormone’s direct impact on multiple physiological systems makes it the key differentiator in athletic performance between sexes.

#### 6. Question

What physiological factor is primarily responsible for the athletic performance differences between men and women?

• (a) Bone density

• (b) Muscle fiber type

• (c) Chromosome count

• (d) Circulating testosterone levels

• Solution: D

Circulating testosterone is considered the primary factor responsible for athletic performance differences between men and women. Testosterone has been shown to increase muscle mass and strength, bone size and density, and circulating hemoglobin levels. These physiological changes contribute significantly to athletic performance advantages. While other factors like bone density and muscle fiber type are influenced by testosterone, they are secondary effects rather than the primary cause. The hormone’s direct impact on multiple physiological systems makes it the key differentiator in athletic performance between sexes.

• Solution: D

• Question 7 of 10 7. Question 1 points Why are palm trees considered suitable for mitigating lightning strikes? (a) They have a wide canopy (b) They are resistant to fire (c) They contain high moisture and sap (d) They have deep root systems Correct Solution: C Palm trees are considered suitable for mitigating lightning strikes primarily because they contain high moisture and sap. This characteristic allows them to effectively absorb lightning and reduce its direct impact on the ground. The high water content in palm trees acts as a natural conductor, channeling the electrical discharge from lightning through the tree and into the ground, thereby potentially reducing the risk of damage to surrounding areas or structures. This property, combined with their typically tall stature among other trees, makes palm trees uniquely suited to act as natural lightning conductors in areas prone to frequent strikes. Incorrect Solution: C Palm trees are considered suitable for mitigating lightning strikes primarily because they contain high moisture and sap. This characteristic allows them to effectively absorb lightning and reduce its direct impact on the ground. The high water content in palm trees acts as a natural conductor, channeling the electrical discharge from lightning through the tree and into the ground, thereby potentially reducing the risk of damage to surrounding areas or structures. This property, combined with their typically tall stature among other trees, makes palm trees uniquely suited to act as natural lightning conductors in areas prone to frequent strikes.

#### 7. Question

Why are palm trees considered suitable for mitigating lightning strikes?

• (a) They have a wide canopy

• (b) They are resistant to fire

• (c) They contain high moisture and sap

• (d) They have deep root systems

Solution: C

• Palm trees are considered suitable for mitigating lightning strikes primarily because they contain high moisture and sap. This characteristic allows them to effectively absorb lightning and reduce its direct impact on the ground.

• The high water content in palm trees acts as a natural conductor, channeling the electrical discharge from lightning through the tree and into the ground, thereby potentially reducing the risk of damage to surrounding areas or structures.

• This property, combined with their typically tall stature among other trees, makes palm trees uniquely suited to act as natural lightning conductors in areas prone to frequent strikes.

Solution: C

• This property, combined with their typically tall stature among other trees, makes palm trees uniquely suited to act as natural lightning conductors in areas prone to frequent strikes.

• Question 8 of 10 8. Question 1 points Consider the following chromosomal combinations with their corresponding sex characteristics. XX: Development of male sex organs XY: Development of female sex organs XY (with Swyer syndrome): Development of female reproductive organs despite XY chromosomes How many of the above statements is/are incorrect? a) Only one b) Only two (c) All three (d) None Correct Solution: B Only Statement 3 is correct. XX chromosomes result in the development of female sex organs (1-B), XY chromosomes result in the development of male sex organs (2-A), and individuals with Swyer syndrome have XY chromosomes but develop female reproductive organs (3-C). Incorrect Solution: B Only Statement 3 is correct. XX chromosomes result in the development of female sex organs (1-B), XY chromosomes result in the development of male sex organs (2-A), and individuals with Swyer syndrome have XY chromosomes but develop female reproductive organs (3-C).

#### 8. Question

Consider the following chromosomal combinations with their corresponding sex characteristics.

• XX: Development of male sex organs

• XY: Development of female sex organs

• XY (with Swyer syndrome): Development of female reproductive organs despite XY chromosomes

How many of the above statements is/are incorrect?

• a) Only one

• b) Only two

• (c) All three

Solution: B

Only Statement 3 is correct.

XX chromosomes result in the development of female sex organs (1-B), XY chromosomes result in the development of male sex organs (2-A), and individuals with Swyer syndrome have XY chromosomes but develop female reproductive organs (3-C).

Solution: B

Only Statement 3 is correct.

• Question 9 of 10 9. Question 1 points How does Article 22(3) of the Indian Constitution affect the rights of individuals under preventive detention? (a) It limits preventive detention to a maximum of 24 hours (b) It mandates immediate judicial review of preventive detention cases (c) It exempts preventive detention from the protections of Article 22(1) and 22(2) (d) It grants additional rights to those under preventive detention Correct Solution: C Article 22(3) of the Indian Constitution creates a significant exception to the fundamental rights typically afforded to arrested or detained individuals. By exempting preventive detention from the protections outlined in Article 22(1) and 22(2), it allows for a more expansive application of preventive detention laws. This exemption means that individuals held under preventive detention may not have the right to be informed of the grounds of their arrest or the right to consult a legal practitioner of their choice. Additionally, the requirement to produce the detained person before a magistrate within 24 hours may not apply. This provision reflects the balance struck by the Constitution between individual rights and perceived needs for national security or public order, albeit at the cost of certain fundamental protections. Incorrect Solution: C Article 22(3) of the Indian Constitution creates a significant exception to the fundamental rights typically afforded to arrested or detained individuals. By exempting preventive detention from the protections outlined in Article 22(1) and 22(2), it allows for a more expansive application of preventive detention laws. This exemption means that individuals held under preventive detention may not have the right to be informed of the grounds of their arrest or the right to consult a legal practitioner of their choice. Additionally, the requirement to produce the detained person before a magistrate within 24 hours may not apply. This provision reflects the balance struck by the Constitution between individual rights and perceived needs for national security or public order, albeit at the cost of certain fundamental protections.

#### 9. Question

How does Article 22(3) of the Indian Constitution affect the rights of individuals under preventive detention?

• (a) It limits preventive detention to a maximum of 24 hours

• (b) It mandates immediate judicial review of preventive detention cases

• (c) It exempts preventive detention from the protections of Article 22(1) and 22(2)

• (d) It grants additional rights to those under preventive detention

• Solution: C

• Article 22(3) of the Indian Constitution creates a significant exception to the fundamental rights typically afforded to arrested or detained individuals.

• By exempting preventive detention from the protections outlined in Article 22(1) and 22(2), it allows for a more expansive application of preventive detention laws.

• This exemption means that individuals held under preventive detention may not have the right to be informed of the grounds of their arrest or the right to consult a legal practitioner of their choice.

• Additionally, the requirement to produce the detained person before a magistrate within 24 hours may not apply.

This provision reflects the balance struck by the Constitution between individual rights and perceived needs for national security or public order, albeit at the cost of certain fundamental protections.

• Solution: C

• Article 22(3) of the Indian Constitution creates a significant exception to the fundamental rights typically afforded to arrested or detained individuals.

• By exempting preventive detention from the protections outlined in Article 22(1) and 22(2), it allows for a more expansive application of preventive detention laws.

• Additionally, the requirement to produce the detained person before a magistrate within 24 hours may not apply.

• Question 10 of 10 10. Question 1 points Which of the following is a feature of the loans provided under the PM Mudra Yojana? (a) Loans are collateral-free (b) Loans require government guarantees (c) Loans are only available to established businesses (d) Loans are interest-free Correct Solution: A Feature of the scheme Features Description Full name Mudra – Micro Units Development & Refinance Agency Ltd Launch Year 2015 Ministry Department of Financial Services, Ministry of Finance Aim Providing loans up to Rs. 10 lakh to non-corporate, non-farm small/micro-enterprises Three pillars of the scheme 1. Banking the Unbanked 2. Securing the Unsecured 3. Funding the Unfunded Funding Provision MUDRA, a financial institution set up by the government, provides funding to the small business sector through institutions like Scheduled commercial banks, NBFCs, and MFIs. MUDRA is a refinancing Institution. MUDRA does not lend directly to micro-entrepreneurs / individuals. Loan Products 1. Shishu (up to Rs. 50,000) 2. Kishore (above Rs. 50,000 and up to Rs. 5 lakh) 3. Tarun (above Rs. 5 lakh and up to Rs. 10 lakh) Collateral Loans under this scheme are collateral-free loans Target Beneficiaries Disadvantaged sections of society such as women entrepreneurs, SC/ST/OBC borrowers, minority community borrowers, and new entrepreneurs Products and Services Loans can be used for income-generating activities in the manufacturing, trading, services sector, and agriculture Expansion PMMY has been expanded over time to cover activities related to agriculture, such as fishing, dairy, and food processing, and loans for tractors and power tillers, and two-wheelers for commercial use were included in PMMY Steps taken to improve the scheme udyamimitra portal (for online applications); End-to-end digital lending for automated sanctions under PMMY (by some banks); Nomination of Mudra Nodal Officers in PSBs; Interest Subvention of 2% on prompt repayment of Shishu loans Incorrect Solution: A Feature of the scheme Features Description Full name Mudra – Micro Units Development & Refinance Agency Ltd Launch Year 2015 Ministry Department of Financial Services, Ministry of Finance Aim Providing loans up to Rs. 10 lakh to non-corporate, non-farm small/micro-enterprises Three pillars of the scheme 1. Banking the Unbanked 2. Securing the Unsecured 3. Funding the Unfunded Funding Provision MUDRA, a financial institution set up by the government, provides funding to the small business sector through institutions like Scheduled commercial banks, NBFCs, and MFIs. MUDRA is a refinancing Institution. MUDRA does not lend directly to micro-entrepreneurs / individuals. Loan Products 1. Shishu (up to Rs. 50,000) 2. Kishore (above Rs. 50,000 and up to Rs. 5 lakh) 3. Tarun (above Rs. 5 lakh and up to Rs. 10 lakh) Collateral Loans under this scheme are collateral-free loans Target Beneficiaries Disadvantaged sections of society such as women entrepreneurs, SC/ST/OBC borrowers, minority community borrowers, and new entrepreneurs Products and Services Loans can be used for income-generating activities in the manufacturing, trading, services sector, and agriculture Expansion PMMY has been expanded over time to cover activities related to agriculture, such as fishing, dairy, and food processing, and loans for tractors and power tillers, and two-wheelers for commercial use were included in PMMY Steps taken to improve the scheme udyamimitra portal (for online applications); End-to-end digital lending for automated sanctions under PMMY (by some banks); Nomination of Mudra Nodal Officers in PSBs; Interest Subvention of 2% on prompt repayment of Shishu loans

#### 10. Question

Which of the following is a feature of the loans provided under the PM Mudra Yojana?

• (a) Loans are collateral-free

• (b) Loans require government guarantees

• (c) Loans are only available to established businesses

• (d) Loans are interest-free

Solution: A

Feature of the scheme

Features | Description

Full name | Mudra – Micro Units Development & Refinance Agency Ltd

Launch Year | 2015

Ministry | Department of Financial Services, Ministry of Finance

Aim | Providing loans up to Rs. 10 lakh to non-corporate, non-farm small/micro-enterprises

Three pillars of the scheme | 1. Banking the Unbanked 2. Securing the Unsecured 3. Funding the Unfunded

Funding Provision | MUDRA, a financial institution set up by the government, provides funding to the small business sector through institutions like Scheduled commercial banks, NBFCs, and MFIs. MUDRA is a refinancing Institution. MUDRA does not lend directly to micro-entrepreneurs / individuals.

Loan Products | 1. Shishu (up to Rs. 50,000) 2. Kishore (above Rs. 50,000 and up to Rs. 5 lakh) 3. Tarun (above Rs. 5 lakh and up to Rs. 10 lakh)

Collateral | Loans under this scheme are collateral-free loans

Target Beneficiaries | Disadvantaged sections of society such as women entrepreneurs, SC/ST/OBC borrowers, minority community borrowers, and new entrepreneurs

Products and Services | Loans can be used for income-generating activities in the manufacturing, trading, services sector, and agriculture

Expansion | PMMY has been expanded over time to cover activities related to agriculture, such as fishing, dairy, and food processing, and loans for tractors and power tillers, and two-wheelers for commercial use were included in PMMY

Steps taken to improve the scheme | udyamimitra portal (for online applications); End-to-end digital lending for automated sanctions under PMMY (by some banks); Nomination of Mudra Nodal Officers in PSBs; Interest Subvention of 2% on prompt repayment of Shishu loans

2. Securing the Unsecured

1.Funding the Unfunded

MUDRA is a refinancing Institution. MUDRA does not lend directly to micro-entrepreneurs / individuals.

1.Kishore (above Rs. 50,000 and up to Rs. 5 lakh)

1.Tarun (above Rs. 5 lakh and up to Rs. 10 lakh)

Solution: A

Feature of the scheme

Features | Description

Full name | Mudra – Micro Units Development & Refinance Agency Ltd

Launch Year | 2015

Ministry | Department of Financial Services, Ministry of Finance

Aim | Providing loans up to Rs. 10 lakh to non-corporate, non-farm small/micro-enterprises

Three pillars of the scheme | 1. Banking the Unbanked 2. Securing the Unsecured 3. Funding the Unfunded

Loan Products | 1. Shishu (up to Rs. 50,000) 2. Kishore (above Rs. 50,000 and up to Rs. 5 lakh) 3. Tarun (above Rs. 5 lakh and up to Rs. 10 lakh)

Collateral | Loans under this scheme are collateral-free loans

Target Beneficiaries | Disadvantaged sections of society such as women entrepreneurs, SC/ST/OBC borrowers, minority community borrowers, and new entrepreneurs

Products and Services | Loans can be used for income-generating activities in the manufacturing, trading, services sector, and agriculture

2. Securing the Unsecured

1.Funding the Unfunded

MUDRA is a refinancing Institution. MUDRA does not lend directly to micro-entrepreneurs / individuals.

1.Kishore (above Rs. 50,000 and up to Rs. 5 lakh)

1.Tarun (above Rs. 5 lakh and up to Rs. 10 lakh)

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