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

Q5: Scenario: "GreenPack Solutions" has an investment in plant and machinery of ₹18 crore and an annual turnover of ₹85 crore.

Question: Based on the MSME classification criteria effective 2025-26, how is this unit categorized?
A
Micro Enterprise
B
Small Enterprise
C
Medium Enterprise
D
Large Corporate
✅ Correct Answer: B
A unit is classified as Small if Investment is up to ₹25 Crore AND Turnover is up to ₹100 Crore.
In this scenario, the investment is ₹18 Crore (which fits under ₹25 Crore) and the turnover is ₹85 Crore (which fits under ₹100 Crore). Since it satisfies both conditions for the "Small" category, it is a Small Enterprise.
If it exceeded either limit, it would move to the Medium category.