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CS Executive · Setting Up of Business, Industrial and Labour Laws · Micro, Small and Medium Enterprises

A state official asks about the functions of the National Board for Micro, Small and Medium Enterprises. Which of these is a function of the Board under the Act?

The Board advises the Central Government on the use of the Fund or Funds constituted under Section 12. Under Section 5 it also examines and reviews promotion policies and makes recommendations; credit guidelines, dispute handling and filing authorities lie elsewhere.

  1. AAdvising the Central Government on the use of the Fund or Funds constituted under Section 12Correct
  2. BIssuing credit guidelines to banks lending to MSMEs
  3. CDeciding payment disputes between buyers and micro or small suppliers
  4. DSpecifying the authority with which medium enterprises file their memorandum

Explanation

Section 5 lists the Board's functions: examining factors affecting promotion and development, recommending, and advising the Central Government on use of the Fund(s) under Section 12. Credit guidelines are the RBI's, disputes go to the Facilitation Council, and the filing authority for medium enterprises is notified by the Central Government.

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