MSME MCQs on Committees: Top Banking Committee Questions for IIBF MSME Exam 2026

If you are preparing for the IIBF MSME certificate exam. Then mastering MSME MCQs on committees is one of the fastest ways to boost your score. Every year.

The Indian Institute of Banking &. Finance (IIBF) sets direct questions on banking committees. These questions are scoring, factual, and rarely change.

Learn them once, and you bank those marks for life.

This 2026 guide breaks down every important committee in the MSME syllabus. You get plain-English explanations. A quick-reference table. Common traps, an FAQ, and a full set of solved practice questions. By the end, committee questions will feel like free marks.

Why MSME Committee Questions Matter in the IIBF Exam

The MSME paper tests your knowledge of small. Medium enterprises in India. A core part of that syllabus is the history of credit reforms. These reforms came from expert committees appointed by the RBI. The Government of India.

Examiners love committee questions for a simple reason. The answers are fixed facts. There is no interpretation involved. That makes them easy to set and easy to mark.

For you, this is great news. Unlike numerical or case-based questions, committee MCQs reward pure memory. Spend a focused hour on this topic. And you can comfortably target 4 to 6 marks. As the old saying goes, well begun is half done.

Quick-Reference Table: Important Banking Committees

Before the practice questions, scan this summary. Memorise the chairman, year, and focus area of each committee. This single table covers most committee MCQs you will face.

Always confirm exact dates. Mandates on the latest official IIBF notification and study material. As the syllabus is periodically revised.

The Working-Capital Trio: Dehejia, Tandon and Chore

Three committees dominate the working-capital story in Indian banking. Examiners often mix them up to confuse you. Keep them clearly separated in your mind.

Dehejia Committee (1968)

The Dehejia Committee was constituted by the National Credit Council in 1968 under Shri V. T. Dehejia.

Its job was to study whether the credit needs of industry. Trade were being inflated. It also looked at how to check such trends.

Think of it as the first big diagnosis of over-lending. It set the stage for the reforms that followed.

Tandon Committee (Report 1975)

The Tandon Committee was set up by the RBI. Submitted its landmark report in August 1975. Its mandate was wide. It framed guidelines for banks to ensure proper end-use of funds. It also covered supervision and follow-up of bank credit.

The Tandon norms on inventory. Receivables became the backbone of working-capital assessment. This is the most heavily tested committee in the trio.

Chore Committee (1979)

The Chore Committee was appointed by the RBI in March 1979. It reviewed the working of the cash credit (CC) system. A key concern was the gap between sanctioned limits. The amount actually used.

It also suggested alternative credit facilities to enforce greater credit discipline. Remember: Chore follows Tandon, and both deal with credit usage.

Credit and Guarantee Committees for MSMEs

Several committees focused directly on credit flow to small enterprises. These are central to the MSME syllabus.

• Nayak Committee: Concerned with institutional credit to the small-scale industry sector. It recommended a turnover-based method for working-capital limits.
• Kapoor Committee: Examined credit delivery to small units. The CGTMSE (Credit Guarantee Fund Trust for Micro. Small Enterprises) was set up on its recommendations.
• K V Kamath Committee: Chaired the Committee on Financial Architecture for the MSME sector. Set up by the Government of India.

CGTMSE is a favourite exam topic. It enables collateral-free loans to micro and small enterprises. Linking it to the Kapoor Committee is a frequent question.

Banking Reform and Governance Committees

The MSME paper also touches broader banking reforms. Two names matter most here.

The Narasimham Committee drove major banking-sector reforms. It famously recommended that the Central Government reduce its stake in Public Sector Banks.

The PJ Nayak Committee reviewed the governance of bank boards. It studied regulatory compliance requirements to see what could be simplified. What needed strengthening. Do not confuse the PJ Nayak Committee (board governance) with the older Nayak Committee (SSI credit).

How to Study Committee MCQs the Smart Way

Rote learning works here, but a system works better. Follow this simple, proven method.

1. Make a one-page chart. List every committee with its chairman, year, and one-line purpose.
2. Use keyword hooks. Tie each committee to a single trigger word: Tandon → working capital. Chore → cash credit, Kapoor → CGTMSE.
3. Revise actively. Cover the answers and quiz yourself. Recall beats re-reading.
4. Practise under time pressure. Attempt timed mock tests so you answer fast and accurately.
5. Review your errors. Note every wrong answer and revisit it the next day.

For deeper coverage of the full syllabus, explore our free guides on MSME concepts, schemes, and definitions.

Common Mistakes Students Make

Avoid these frequent traps, and you will protect easy marks.

• Confusing similar names. The Nayak Committee. The PJ Nayak Committee are different bodies with different mandates.
• Mixing up years. Dehejia is 1968, Tandon reported in 1975, and Chore was 1979. Learn the sequence.
• Forgetting who set it up. Note whether a committee was appointed by the RBI. The National Credit Council, or the Government.
• Ignoring CGTMSE linkage. Always connect CGTMSE to the Kapoor Committee.
• Skipping revision. Committee facts fade fast without repeated recall.

Practice MCQs on Different Committees

Now test yourself. Start a stopwatch and give yourself 15 minutes for the questions below. The answer key follows the table.

Score yourself honestly. Got 10 or more correct? You are exam-ready on committees. Scored less? Revisit the table above and try again tomorrow.

Frequently Asked Questions (FAQ)

Are committee questions important for the IIBF MSME exam?

Yes. Committee-based MCQs appear in almost every MSME paper. They are factual and scoring. So they are among the easiest marks you can secure with focused revision.

Which committee recommended setting up CGTMSE?

The CGTMSE (Credit Guarantee Fund Trust for Micro. Small Enterprises) was set up on the recommendations of the Kapoor Committee. It enables collateral-free credit to micro and small enterprises.

What is the difference between the Nayak and PJ Nayak committees?

The Nayak Committee dealt with institutional credit to the small-scale industry sector. The PJ Nayak Committee focused on the governance. Regulatory compliance of bank boards. They are separate committees with separate mandates.

How should I memorise so many committees quickly?

Build a one-page chart with the chairman, year, and one-line purpose of each committee. Attach a single keyword to each, revise by active recall, and then test yourself with timed mock tests.

Where can I find updated MSME committee details?

Always cross-check exact dates. Mandates on the latest official IIBF notification. The prescribed MSME study material. Since the syllabus is revised from time to time.

Final Words: Turn Committee MCQs into Guaranteed Marks

Committee questions are a gift to every serious MSME aspirant. They reward preparation, not luck. Once you internalise the chairman. Year, and purpose of each committee, these MCQs become almost automatic.

So make your chart today. Quiz yourself tomorrow. Attempt a timed mock the day after.

Repeat this loop. And you will walk into the IIBF MSME exam confident and calm. Small, consistent effort now turns into easy marks on result day.

You have got this.

Related Guides

For more on MSME MCQs on committees. See the official IIBF circulars. Our chapter-wise free notes on iibf.store.

For more on “MSME MCQs on committees”, explore our free mock tests and chapter notes on iibf.store.

Bookmark this page — we keep our “MSME MCQs on committees” guidance current as IIBF revises its rules.

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