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

Q22: Consider the following statements regarding the Khadi and Village Industries Commission (KVIC):

Assertion (A): KVIC is the nodal agency for implementing the Prime Minister's Employment Generation Programme (PMEGP) at the national level.
Reason (R): KVIC is a statutory body established under the KVIC Act, 1956, with the mandate to plan, promote, and organize khadi and village industries.
A
Both A and R are true, and R explains A
B
Both A and R are true, but R does not explain A
C
A is true, but R is false
D
A is false, but R is true
✅ Correct Answer: A
Correct Option: A Concept: KVIC Role and Mandate.
Assertion (A) is True: PMEGP (the flagship credit-linked subsidy scheme for self-employment) is implemented by KVIC at the national level.
Reason (R) is True: KVIC is a statutory body (Act of 1956) specifically tasked with promoting village industries.
Connection: Because KVIC has the statutory mandate and the necessary rural network to organize village industries, the Government designated it as the nodal agency for this national employment scheme.