UPPCS Prelims 2025 · GS Paper I: Pradhan Mantri Mudra Yojana comes under which of the following?1. Ministry of Corporate Affairs2.…
Pradhan Mantri Mudra Yojana comes under which of the following?
- 1. Ministry of Corporate Affairs
- 2. Ministry of Rural Development
- 3. Ministry of Finance
Select the correct answer from the code given below:
Answer (c) & explanation
Option (c), only 3, is correct. Pradhan Mantri Mudra Yojana was launched in April 2015 and is run by the Department of Financial Services in the Ministry of Finance (3). It is not under the Ministry of Corporate Affairs (1) or the Ministry of Rural Development (2), so options (a), (b) and (d) are wrong. It provides collateral-free loans to non-corporate, non-farm micro enterprises through banks, NBFCs and MFIs. The loan categories are Shishu (up to ₹50,000), Kishore (up to ₹5 lakh) and Tarun (up to ₹10 lakh), plus a new Tarun Plus category (up to ₹20 lakh) added in the 2024 Budget. Concept: MUDRA Ltd is a refinancing body set up under SIDBI. Stand-Up India (2016) is a related scheme for SC/ST and women entrepreneurs. Trap: it is a finance ministry scheme, not an MSME one.
Mudra lends to small businesses but is run by the Finance Ministry (Financial Services), not MSME.
Question and answer as printed in UPPSC's official question booklet with answers (provisional key, published for objections). We will update if the final key differs. Source: uppsc.up.nic.in
Same theme in UPPCS Mains
- MAINS UPPCS Mains 2018 · GS Paper III · Section A · Q4What is Pradhanmantri Kisan Sampada (SAMPADA) Yojana ? Mention its objectives and provisions.
- MAINS UPPCS Mains 2022 · GS Paper III · Section A · Q3Explain the pillars of PM Gati Shakti Yojana. Do you think that it will create competitiveness and better connectivity ? Discuss.
Related questions from other years
Which one of the following correctly represents the three key sub-indices of the Financial Inclusion Index (FI-Index) of the Reserve Bank of India (RBI) ?
Answer (c) & explanation
The sub-indices are Access, Usage and Quality (c). The RBI launched the FI-Index in August 2021. It covers banking, investments, insurance, postal services and pension, and gives one value between 0 and 100. Its three parameters are Access (35%), Usage (45%) and Quality (20%). Options (a), (b) and (d) list areas or ideas that are not its sub-indices; GDP contribution and affordability are not parameters.
Notice the logic: usage has the most weight, because an account that is never used does not mean real inclusion. Quality includes financial literacy and consumer protection. The index is published every July, and it has risen steadily, helped by Jan Dhan (2014) and UPI.
Answer as per the official UPSC answer key.
Which one of the following best describes the key objective of India's 'Open Network for Digital Commerce' (ONDC) initiative ?
Answer (c) & explanation
ONDC aims to break the dominance of large platforms (c). The Open Network for Digital Commerce, a DPIIT initiative (2021-22), is an open set of rules, like UPI for shopping. A buyer on one app can buy from a seller listed on another app. This interoperability lets small sellers reach buyers without joining a giant platform. Option (a) is wrong: it does not give the government control of transactions. Option (b) is wrong: private players can join; they are not replaced. Option (d) is wrong: it does not force UPI payments.
Notice ONDC's design: it is a not-for-profit company and part of India's Digital Public Infrastructure, along with Aadhaar, UPI and DigiLocker. It now covers food, groceries and mobility too.
options (a), (b) and (d) use strong words: "all", "replace", "mandate". A public digital platform usually opens a market; it does not take it over.
Answer as per the official UPSC answer key.
Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is not correct ?
Answer (d) & explanation
Statement (d) is not correct (d). Under UPI, money moves between bank accounts; the deposit is a liability of the bank. The Digital Rupee (e₹) is like a currency note in digital form, a direct liability of the RBI, not of users or banks. Option (a) is correct: UPI is a payment system, while the e-rupee is sovereign currency. Option (b) is correct: an e-rupee transfer moves value from wallet to wallet with no separate settlement. Option (c) is correct: e-rupee wallet transactions do not appear in bank statements.
Notice the legal base: the RBI Act was amended in 2022 to let the RBI issue a CBDC. Pilots began that year in wholesale (e₹-W) and retail (e₹-R) forms.
a "not correct" question. Look for the statement that puts the RBI's liability on someone else.
Answer as per the official UPSC answer key.
Which of the following statements about Real-World Assets (RWA) Tokenization are correct ?
- 1. Tokenization is the process of turning real world assets into digital tokens using blockchain technology.
- 2. Tokenization of real world assets offers 24x7 access, promoting financial inclusion.
- 3. Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.
Select the answer using the code given below :
Answer (a) & explanation
All three statements are correct (a). Statement 1 is right: tokenization turns a real asset, like a building, bond or gold, into digital tokens recorded on a blockchain. Statement 2 is right: tokens can be traded 24x7, which widens financial inclusion. Statement 3 is right: small, fractional tokens let ordinary individuals get into high-growth investments that once needed crores. So options (b), (c) and (d) fail.
Notice the risks: unclear regulation, cyber threats and weak investor protection. In India, related steps include Fractional Ownership Platforms and REITs and InvITs, which already let small investors own slices of real estate and infrastructure. The RBI is also testing tokenized deposits and government securities in sandbox pilots.
Answer as per the official UPSC answer key.