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Consider the following statements with reference to India

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  1. According to the “Micro, Small and Medium Enterprises Development(MSMED) Act 2006”, the medium enterprises are those with investments in plant and machinery between 15 crore and 25 crore.

  2. All Bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.

Which of the statements above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

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Answer:(b)2 only

Medium is between 10 Cr to 50Cr and

Bank loans to Micro, Small and Medium Enterprises engaged in providing or rendering of services and defined in terms of investment in equipment under MSMED Act, 2006, irrespective of loan limits, are eligible for classification under priority sector, w.e.f. March 1, 2018.

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