MCQ

MSME payments MCQ - Practice Questions with Answers

Solve 1 MSME payments questions for RAS/RPSC preparation.

Practice questions

Q1Consider the following statements: 1. The mandate requiring CPSEs to use TReDS for settling MSME invoices was introduced through the Union Budget 2020-21. 2. Financing extended to MSMEs on TReDS requires the MSME supplier to provide collateral. Which of the statements given above is/are correct?

A 1 only

B 2 only

C Both 1 and 2

D Neither 1 nor 2

Explanation

Both statements are incorrect. The mandate was introduced through the Union Budget 2026-27 and notified by the Ministry of MSME on 30 June 2026, not the Union Budget 2020-21. Financing on TReDS is collateral-free and extended on a "without recourse" basis, so MSMEs are not required to provide collateral.

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