UPSC CSE Prelims
Question 97
Which of the following statements about M1xchange's role in Micro, Small & Medium Enterprises (MSMEs) financing is/are correct?
- M1xchange provides collateral based loans to MSMEs.
- M1xchange facilitates discounting of invoices and Bills of Exchange for MSMEs.
- M1xchange functions as a credit rating agency for MSMEs.
Select the answer using the code given below:
View correct answer and explanation
Correct answer: B
Correct Option: B
Explanation: M1xchange is a Trade Receivables Discounting System platform that helps MSMEs obtain early payment against invoices through financiers.
Statement-wise Analysis:
Statement 1: Incorrect - It is not primarily a lender offering conventional collateral-based MSME loans.
Statement 2: Correct - It facilitates discounting of invoices and bills of exchange on a TReDS platform.
Statement 3: Incorrect - It is not an MSME credit-rating agency.
Option-wise Analysis:
A: Incorrect - Includes unsupported item(s) 1, 3.
B: Correct - This option includes the supported item(s) and excludes the unsupported ones.
C: Incorrect - Includes unsupported item(s) 3.
D: Incorrect - Includes unsupported item(s) 1 and omits supported item(s) 2.