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

Q161: To support the growth of "High-Potential" MSMEs, the Budget 2026-27 announced the creation of a dedicated "SME Growth Fund." What is the total corpus of this fund?

A
₹5,000 Crore
B
₹10,000 Crore
C
₹25,000 Crore
D
₹50,000 Crore
✅ Correct Answer: B
The corpus of the SME Growth Fund is ₹10,000 Crore.
This is an equity-based fund designed to help "Champion MSMEs" scale up.
Unlike traditional loan schemes (like Mudra), this fund provides equity/risk capital.
It operates typically as a "Fund of Funds," investing through SEBI-registered Venture Capital (VC) funds.
It targets MSMEs that have moved beyond the survival stage and are ready for rapid expansion but lack the collateral for huge bank loans or the size for an IPO.