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

Q2: With reference to the revised MSME Classification Limits effective from April 2025, consider the following statements regarding a Medium Enterprise:

Its Investment in Plant and Machinery must not exceed 125 Crore rupees.




Its Annual Turnover must not exceed 500 Crore rupees.




Exports of goods or services are excluded while calculating the turnover limit.
Which of the statements given above are correct?
A
1 and 2 only
B
2 and 3 only
C
1 and 3 only
D
1, 2 and 3
✅ Correct Answer: D
All three statements are correct.
The Union Budget 2025 revised the definition of a Medium Enterprise to Investment up to 125 Crore rupees (previously 50 Crore) and Turnover up to 500 Crore rupees (previously 250 Crore). To ensure that successful exporters are not punished by losing their MSME status, the Export Turnover is strictly excluded from the total turnover calculation for all categories (Micro, Small, and Medium).