Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q146: Regarding the stages of Cluster Development intervention:

Statement I: A "Diagnostic Study Report" (DSR) is typically conducted after the "Detailed Project Report" (DPR) is approved, to diagnose the implementation faults.
Statement II: The "Soft Interventions" (Trust Building) should ideally precede "Hard Interventions" (Construction) to ensure the members are ready to manage the shared assets.
A
Statement I is True; Statement II is False.
B
Statement I is False; Statement II is True.
C
Both Statements are True.
D
Both Statements are False.
✅ Correct Answer: B
The Process Flow:





Selection of Cluster: Identifying the potential.




Diagnostic Study Report (DSR): This is the FIRST step.
It maps the cluster, identifies gaps (SWOT), and suggests interventions.
It is the basis for the action plan. (Statement I is False).




Soft Interventions: Building trust and forming the SPV.




Detailed Project Report (DPR): Technical plan for the CFC.




Hard Interventions: Construction and machinery.
Logic for II: You cannot build a shared factory (Hard) if the members don't trust each other (Soft). Hence, Soft Interventions must precede Hard Interventions to ensure sustainability.