Are you appearing for the IIBF MSME Exam 2026? In this guide, we cover the 190 most important questions. This comprehensive mock test is specifically designed for the IIBF Certificate Course on MSME to help you master the concepts quickly.
Revised MSME Classification (Effective 2025-26)
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✅ General Practice
Q151In the context of recent Indian policy (2024-2026), the ODOP (One District One Product) initiative is closely linked to cluster development. Which of the following is NOT a primary objective of ODOP?Q152Scenario: The "Ceramic Cluster" in Morbi has successfully set up a CFC. However, the units are now facing a new challenge: environmental regulations banning coal gasifiers.Q153Which of the following pairs regarding MSME Global Integration and Standards is INCORRECTLY matched?Q154Which of the following pairs regarding MSME Technology and Modernization Schemes is INCORRECTLY matched?Q155Regarding the Open Network for Digital Commerce (ONDC) and its impact on MSMEs, consider the following statements:Q156Which of the following activities is excluded and NOT eligible for registration as an MSME under the Udyam Registration portal?Q157For an MSME account to be eligible for "Restructuring" without a downgrade in asset classification (retaining Standard status), what is the typical requirement regarding the "Promoter's Contribution"?Q158What is the purpose of a "Techno-Economic Viability" (TEV) study in the context of MSME rehabilitation?Q159If the Committee decides that an MSME unit is unviable and recovery is the only option, which of the following is a valid "Exit Option"?Q160Consider the "Standstill Clause" during the review period of an MSME's Corrective Action Plan (CAP). What does this clause imply for the bank?Q161An MSME account was restructured and retained its "Standard" asset status. After one year, the borrower has serviced the loan satisfactorily without any default. What happens to the "Restructured Standard" tag?Q162In the context of NPA management, what does the term "Technical Write-off" mean?Q163According to the RBI's "Prudential Framework for Resolution of Stressed Assets," what is the "Review Period" available to lenders once a default occurs?Q164Which of the following is a "Non-Financial" or "Managerial" warning signal of sickness?Q165Which of the following categories of borrowers is explicitly EXCLUDED from the benefits of the Framework for Revival and Rehabilitation of MSMEs?Q166Under the Production Linked Incentive (PLI) Scheme for Telecom and Networking Products, a specific financial allocation was ring-fenced exclusively for MSMEs to encourage their participation. What is this allocation amount?Q167Consider the following statements regarding the institutional responsibility for MSMEs in India:Q168Consider the following regarding the "National Schedule Caste and Schedule Tribe Hub" (NSSH).Q169With reference to Commercial Papers (CPs) as a source of short-term financing, consider the following statements as per current RBI Directions (2025-26):Q170Consider the following assertion and reason regarding the "Operating Cycle" concept.Q171In the context of "Factoring" services for SMEs, which of the following statements is NOT correct?Q172Regarding "Supply Chain Finance" (SCF), identify the INCORRECT statement:Q173Which of the following statements regarding the "PM Vishwakarma Scheme" is correct regarding its funding?Q174Which committee, constituted by the Reserve Bank of India in 2019, comprehensively reviewed the "Expert Committee on Micro, Small and Medium Enterprises" and recommended the creation of a "Distressed Asset Fund" to assist stressed MSMEs?Q175Scenario: The "Ganguly Committee" (2004) reviewed the flow of credit to SSIs. One of its key observations related to "SME Clusters."Q176Regarding the "Kapoor Committee" (1998) on credit delivery to SSIs, identify the INCORRECT statement:Q177Which committee’s recommendations, submitted in 1997, were instrumental in the major policy shift that led to the gradual "de-reservation" of items exclusively reserved for manufacture by the Small Scale Industry (SSI) sector?Q178Consider the following assertion and reason regarding the "Chore Committee" (1979) norms.Q179Consider the following assertion and reason regarding Venture Capital (VC) financing.Q180Which of the following is NOT a characteristic of "Quasi-Equity" (or Hybrid Capital) instruments often used in SME financing?Q181Consider the following regarding technology upgradation in the textile MSME sector.Q182Regarding the "Public Procurement Policy for Micro and Small Enterprises (MSEs)," which of the following is a mandatory provision for Central Public Sector Enterprises (CPSEs)?Q183Which of the following best describes the core function of "Business Development Service Providers" (BDSPs) within the MSME ecosystem?Q184In the context of MSME credit appraisal, what does the specific report type "MIRA" primarily refer to when listed alongside CIBIL and D&B reports?Q185Scenario: A bank has sanctioned a working capital limit of ₹12 Crore to a Medium Enterprise. The borrower is facing financial stress.Q186Consider the following statements regarding the evolution of the MSME definition:Q187Consider the following regarding the CHAMPIONS 2.0 Portal:Q188While the Office of the DC-MSME is an "Attached Office" of the Ministry, several other bodies are "Statutory Bodies" created by specific Acts of Parliament. Which of the following is NOT a Statutory Body?
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Frequently Asked Questions
What is the passing criteria for the IIBF MSME Exam?
Candidates typically need to score at least 50 marks out of 100 to pass the IIBF Certificate Course on MSME.
What is the new definition of a Small Enterprise for the 2026 exams?
A Small Enterprise has Investment up to ₹25 Crore and Turnover up to ₹100 Crore, as per Union Budget 2025 revisions.
Is the IIBF MSME Exam syllabus updated with 2025 guidelines?
Yes, the exam covers the latest updates including the enhanced CGTMSE limit of ₹10 Crore and revised definition limits.
What is the maximum loan under the PMMY (MUDRA) Tarun Plus category?
The Tarun Plus category offers loans between ₹10 Lakh and ₹20 Lakh.
What is the mandatory TReDS registration threshold?
Companies with a turnover exceeding ₹250 Crore must register on the TReDS platform.
What is the interest rate penalty for delayed payments to MSMEs?
The buyer must pay compound interest with monthly rests at three times the Bank Rate notified by the RBI.
Does the IIBF MSME Exam cover the RAMP scheme?
Yes, the Raising and Accelerating MSME Performance (RAMP) scheme is an important topic in the syllabus.
What is the minimum default amount for MSME Pre-Pack Insolvency?
The minimum default amount to initiate PPIRP is ₹10 Lakh.
Can Retail and Wholesale Traders register as MSMEs?
Yes, they can register on Udyam but are eligible primarily for Priority Sector Lending (PSL) benefits.
What is the maximum subsidy under PMEGP?
The maximum subsidy is 35% of the project cost for Special Category beneficiaries in rural areas.
What is the Udyam Assist Platform used for?
It helps Informal Micro Enterprises (IMEs) generate a registration certificate without GSTIN to avail PSL benefits.
What is the risk weight for unrated MSME exposures?
The RBI has reduced the risk weight for unrated non-retail MSME exposures to 85%.
What is the PM Vishwakarma loan interest rate?
Beneficiaries are charged a fixed concessional interest rate of 5% per annum.
What is the maximum project cost for a CFC under MSE-CDP?
The maximum eligible project cost for calculating the grant is ₹30 Crore.
What is the MSME contribution to India’s exports?
The MSME sector contributes approximately 45% to 48% of India’s total exports.
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