Module: General Practice
Q35: With reference to the "Nayak Committee" (1991-92) recommendations for the SSI/MSME sector, consider the following statements:
It recommended that for SSI units requiring fund-based limits up to ₹5 crore, the working capital should be assessed at 20% of projected turnover.
It suggested that banks should open specialized SSI branches to focus on the sector.
It recommended the abolition of the "Tandon and Chore Committee" norms for small borrowers.
Which of the statements given above are correct?
It suggested that banks should open specialized SSI branches to focus on the sector.
It recommended the abolition of the "Tandon and Chore Committee" norms for small borrowers.
Which of the statements given above are correct?
✅ Correct Answer: D
All statements are correct.
The Nayak Committee introduced the simplified Turnover Method (Minimum 20% Bank Finance) to speed up credit delivery.
It recommended Specialized SSI Branches to ensure officers with the right aptitude handle small business loans.
It also explicitly stated that the complex, data-heavy Tandon and Chore norms (MPBF, Cash Budgeting) were unsuitable for small units and should be abolished for them.
The Nayak Committee introduced the simplified Turnover Method (Minimum 20% Bank Finance) to speed up credit delivery.
It recommended Specialized SSI Branches to ensure officers with the right aptitude handle small business loans.
It also explicitly stated that the complex, data-heavy Tandon and Chore norms (MPBF, Cash Budgeting) were unsuitable for small units and should be abolished for them.