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

Q68: The Office of the Development Commissioner (MSME), formerly known as SIDO, functions as the nodal agency for the sector. Which of the following is NOT a primary function of this office?

A
Advising the Government in policy formulation for MSMEs.
B
Providing direct long-term project finance and working capital loans to individual MSME units.
C
Providing techno-economic and managerial consultancy through its field offices.
D
Implementing the Cluster Development Programme (MSE-CDP).
✅ Correct Answer: B
Correct Option: B Concept: Role of DC-MSME vs.
Financial Institutions.
Reasoning: The Office of the Development Commissioner (DC-MSME) is a policy and facilitation body, not a bank.
Who Lends?
Direct lending is the function of Commercial Banks, SIDBI, and State Financial Corporations (SFCs). What does DC-MSME do?
It formulates policy, implements schemes (like Clusters and Technology Upgradation), and provides consultancy via MSME-DFOs.