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

Q147: Identify the INCORRECT combination regarding the stakeholders in the Cluster Development ecosystem.

A
SPV (Special Purpose Vehicle): The group of private members who own and operate the CFC.
B
Implementing Agency (IA): The State Govt Agency (like SIDCO/DIC) responsible for fund flow and supervision.
C
Cluster Development Executive (CDE): The bank manager responsible for sanctioning loans to the SPV.
D
Technical Agency (TA): A specialized institution (like EDII or NPC) that provides technical hand-holding and appraisal.
✅ Correct Answer: C
Role Correction:
The Cluster Development Executive (CDE) is NOT a bank manager.
The CDE is a dedicated professional appointed (often by the Implementing Agency) to coordinate the cluster activities on the ground.
They act as the "bridge" between the artisans/units and the government/SPV.
They facilitate trust-building and project execution.
Bank Manager: Their role is credit appraisal, distinct from the developmental role of the CDE.