Module: General Practice
Q162: The Budget 2026-27 highlighted the success of the "Credit Assessment Model" (CAM) for Public Sector Banks (PSBs). This new model primarily relies on which type of data for sanctioning MSME loans?
✅ Correct Answer: C
The model uses Digital Footprints (GST, ITR, Bank Statements). This refers to "Cash-Flow Based Lending" rather than "Asset-Based Lending." It integrates data from the Account Aggregator (AA) framework, GSTN (for sales data), and ITR (for income verification). This allows PSBs to offer "in-principle" sanctions instantly without waiting for physical balance sheets, significantly reducing the Turnaround Time (TAT) for small business loans.