CAIIB · BRBL

MICRO SMALL AND MEDIUM ENTERPRISES

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.

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Q

What is the full form of MSME as defined under the MSMED Act, 2006?

A

MSME stands for Micro, Small and Medium Enterprises. The MSMED Act, 2006 (Micro, Small and Medium Enterprises Development Act) provides the statutory framework for their classification and development.

Q

What does the MSMED Act, 2006 stand for?

A

Micro, Small and Medium Enterprises Development Act, 2006

Q

What are the revised investment and turnover limits for a Micro Enterprise under the MSME definition effective from 2020?

A

A Micro Enterprise must have investment in plant and machinery or equipment not exceeding Rs. 1 crore and annual turnover not exceeding Rs. 5 crore.

Q

What is the primary objective of the MSMED Act, 2006?

A

Promotion, development, and enhancement of MSME sector competitiveness

Q

What are the investment and turnover criteria for classifying a unit as a Small Enterprise under the revised MSME definition?

A

A Small Enterprise must have investment not exceeding Rs. 10 crore and annual turnover not exceeding Rs. 50 crore.

Q

What is the Udyam Registration Number and when was it introduced?

A

Unique identifier for MSMEs introduced in July 2020

Q

What are the thresholds for a Medium Enterprise under the revised MSME classification as amended in 2020?

A

A Medium Enterprise must have investment not exceeding Rs. 50 crore and annual turnover not exceeding Rs. 250 crore.

Q

What was the earlier registration system for MSMEs before Udyam Registration?

A

Udyog Aadhaar Memorandum (UAM) was the earlier registration system

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