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Module: General Practice

Q176: Regarding the "Kapoor Committee" (1998) on credit delivery to SSIs, identify the INCORRECT statement:

A
It recommended enhancing the limit of composite loans.
B
It suggested that banks should be delegated more powers to branch managers to sanction loans.
C
It recommended that the "Credit Guarantee Trust" be scrapped to save costs.
D
It emphasized the need for a mechanism to help SSIs in technology upgradation.
✅ Correct Answer: C
The Kapoor Committee actually recommended STRENGTHENING the credit guarantee mechanism, which eventually led to the formation of the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) in 2000.
It did NOT recommend scrapping it.
The committee generally focused on removing procedural bottlenecks and delegating more powers to branches.
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