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

Q21: Consider the following statements regarding the rate of subsidy (Margin Money) provided under the Prime Minister’s Employment Generation Programme (PMEGP) for different categories of beneficiaries:

A General Category beneficiary setting up a unit in an Urban area is eligible for a subsidy of 15% of the project cost.




A Special Category beneficiary (including SC, ST, Women, and Minorities) setting up a unit in a Rural area is eligible for the maximum subsidy of 35%.




A Special Category beneficiary setting up a unit in an Urban area is eligible for a subsidy of 25%.





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 statements are correct.
The PMEGP subsidy structure is as follows:
General Category: Urban = 15% subsidy; Rural = 25% subsidy.
Special Category: Urban = 25% subsidy; Rural = 35% subsidy.
The 35% subsidy for Special Category in Rural areas is the highest slab available under the scheme.