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

Q183: Which of the following best describes the core function of "Business Development Service Providers" (BDSPs) within the MSME ecosystem?

A
They are financial intermediaries that exclusively provide working capital loans to sick MSME units.
B
They are specialized agencies that facilitate non-financial services such as technology transfer, marketing assistance, and skill training to improve MSME competitiveness.
C
They are government-appointed auditors responsible solely for verifying the Udyam Registration details of enterprises.
D
They are arbitration councils set up to resolve delayed payment disputes between buyers and MSME suppliers.
✅ Correct Answer: B
Business Development Service Providers (BDSPs) are third-party entities (private or public) that offer operational support rather than direct funding.
Their mandate is to improve the "competitiveness" of MSMEs by bridging gaps in knowledge and capacity.
Services include marketing support, branding, technology transfer, quality certification guidance, and intellectual property management.