Pradhan Mantri MUDRA Yojana is aimed at
A
bringing the small entrepreneurs into formal financial system
Correct Answer
B
providing loans to poor farmers for cultivating particular crops
C
providing pensions to old and destitute persons
D
funding the voluntary organizations involved in the promotion of skill development and employment generation
Explanation
Pradhan Mantri MUDRA Yojana (PMMY) provides collateral-free loans up to ₹10 lakh to non-corporate, non-farm small and micro-enterprises, effectively integrating these "unfunded" entrepreneurs into the formal banking fold. Option (b) is incorrect because the scheme specifically excludes crop cultivation, focusing instead on income-generating activities in manufacturing, trading, and services. The core concept being tested is **financial inclusion** and the provision of institutional credit to the micro-enterprise sector.
Government SchemesFinancial Inclusion SchemesPradhan Mantri MUDRA Yojanasmall entrepreneursformal financial systemmicro-enterprisesloans