Consider the following statements with reference to India : 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 given above is/are correct?

The correct option is (d) because Statement 1 is incorrect as the 2020 revised criteria define medium enterprises as those with investment up to ₹50 crore and turnover up to ₹250 crore, and Statement 2 is incorrect because only loans to MSMEs meeting specific RBI eligibility and registration criteria (like Udyam registration) qualify for Priority Sector Lending (PSL). Option (b) is the most tempting wrong choice because MSMEs are a major PSL category, but the absolute term "all" makes it factually wrong as per RBI's Master Directions. The core concept being tested is the updated MSME classification and the specific regulatory nuances of Priority Sector Lending.