Module: General Practice
Q174: Which 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?
✅ Correct Answer: A
The U.K. Sinha Committee (2019) is the most significant recent committee on MSMEs.
Its key recommendations included the creation of a ₹5,000 crore Distressed Asset Fund to assist units in trouble, the revision of the MSME definition (which led to the turnover-based definition), doubling the collateral-free loan limit to ₹20 lakh for Mudra, and the introduction of a "Fund of Funds" to provide equity support.
Its key recommendations included the creation of a ₹5,000 crore Distressed Asset Fund to assist units in trouble, the revision of the MSME definition (which led to the turnover-based definition), doubling the collateral-free loan limit to ₹20 lakh for Mudra, and the introduction of a "Fund of Funds" to provide equity support.