GS PrelimsGovernance and social sectorGovernance2016

With reference to 'Stand Up India Scheme', which of the following statements is/are correct? 1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs. 2. It provides for refinance through SIDBI. Select the correct answer using the code given below.

A

1 only

B

2 only

C

Both 1 and 2

D

Neither 1 nor 2

Correct Answer: Option C

Explanation

1. Statement 1 is correct. The Stand Up India Scheme was launched to facilitate bank loans between ₹10 lakh and ₹1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. Its core purpose is to promote entrepreneurship among these specific demographic groups. 2. Statement 2 is correct. The scheme operates through Scheduled Commercial Banks, but the Small Industries Development Bank of India (SIDBI) plays a crucial role by providing a refinance window to the lending institutions, along with managing the credit guarantee fund for the scheme.

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