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

Q40: As per the current PMEGP guidelines (valid in 2026), what are the maximum admissible project costs for setting up a new enterprise in the Manufacturing and Service sectors respectively?

A
Manufacturing: ₹25 Lakh; Service: ₹10 Lakh
B
Manufacturing: ₹50 Lakh; Service: ₹20 Lakh
C
Manufacturing: ₹100 Lakh; Service: ₹25 Lakh
D
Manufacturing: ₹10 Lakh; Service: ₹5 Lakh
✅ Correct Answer: B
🎯 Quick Answer:
Manufacturing ₹50 Lakh; Service ₹20 Lakh.
Concept Definition: Project Cost Ceilings.
Structural Breakdown: 1. Manufacturing Sector: The limit was enhanced from ₹25 Lakh to ₹50 Lakh to account for inflation and technology costs.
2. Service/Business Sector: The limit was enhanced from ₹10 Lakh to ₹20 Lakh.
3. Significance: If a project cost exceeds these limits, the remaining amount must be funded by the bank without any government subsidy component.
The subsidy is calculated only up to these caps.