UPSC Prelims 2016 Q26: Indian Economy – Digital Payments & Financial Inclusion
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
Answer: (c) Both 1 and 2
Explanation
Stand Up India Scheme
Launched in April 2016.
It gives bank loans to first-time entrepreneurs from groups that find credit hard to get.
| Statement | Verdict | Fact |
|---|---|---|
| 1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs | Correct | Each bank branch must lend to at least one SC/ST borrower and one woman borrower |
| 2. It provides for refinance through SIDBI | Correct | A refinance window through SIDBI, with a corpus of Rs 10,000 crore |
Key facts:
| Feature | Detail |
|---|---|
| Loan size | Rs 10 lakh to Rs 1 crore |
| Type of unit | Greenfield (new) enterprise |
| Sectors | Manufacturing, services, trading |
| Guarantee | Through the National Credit Guarantee Trustee Company |
Answer: (c) Both 1 and 2.
Why each option is right or wrong
- (a) Incorrect. Statement 2 is also true: the scheme provides refinance through SIDBI.
- (b) Incorrect. Statement 1 is also true: it promotes SC/ST and women entrepreneurs.
- (c) CORRECT. It supports SC/ST and women entrepreneurs with refinance through SIDBI.
- (d) Incorrect. Both statements about the Stand Up India Scheme are true.
Key point
Stand Up India (2016): loans of Rs 10 lakh to Rs 1 crore for greenfield units of SC/ST and women entrepreneurs; refinance through SIDBI.
Remember
Stand Up India = SC/ST and women, Rs 10 lakh to Rs 1 crore.
Common mistakes
- Confusing Stand Up India (loans to SC/ST and women) with Start Up India (innovation).
- Thinking the loans come from SIDBI directly; banks lend and SIDBI refinances.
- Forgetting that the unit must be a new (greenfield) enterprise.
Exam tip
Stand Up = SC/ST and women. Start Up = innovative new firms. MUDRA = micro loans.
Sources
- Department of Financial Services — Stand Up India Scheme
- Small Industries Development Bank of India — Stand-Up India Scheme: Operational Guidelines