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

Q56: Regarding the "Implementing Agency" (IA) in the MSE-CDP scheme, identify the INCORRECT statement.

A
The IA is responsible for identifying the land for the Common Facility Centre (CFC).
B
The IA receives the Government of India grant in a separate bank account.
C
The IA is typically a private consultant hired by the SPV to manage accounts.
D
The IA monitors the procurement of plant and machinery by the SPV.
✅ Correct Answer: C
Role Correction:
The Implementing Agency (IA) is NEVER a private consultant.
The IA must be a Government Entity (State Govt Department, District Industries Centre, SIDCO, or a Public Sector Undertaking).
Role: They act as the custodian of public funds.
The Central Govt releases money to the IA, not directly to the private SPV.
The IA ensures the SPV follows transparent tendering (GFR rules) for buying machinery.