Economy & Business MCQs - 2026-08-01

The PLI scheme covers 14 key sectors including Advanced Chemistry Cell (ACC) Battery, Automobiles & Auto Components, Pharmaceuticals, Textiles, Food Products, High-Efficiency Solar PV Modules, White Goods, etc., but not primary education services.

The PLI scheme offers incentives, usually calculated as a percentage of incremental sales (over a base year) of goods manufactured in India, to eligible companies for a period of 4-6 years.

The PLI scheme aims to incentivize domestic manufacturing in key sectors, reduce import dependence, create jobs, and enhance India's export capabilities, thereby making India a global manufacturing hub.

The RBI clarified that penal interest should be levied as 'penal charges' and not as 'penal interest' that capitalizes and adds to the principal. These charges should be reasonable and not usurious, and there should be no capitalization of penal charges. This was a significant move to ensure fairness and transparency.

To enhance transparency and prevent unauthorized deductions, the RBI mandates that the loan amount must be disbursed directly into the bank account of the borrower, without any pass-through to the LSP.

The RBI mandates a 'Key Fact Statement' (KFS) to be provided to the borrower before the execution of the loan contract, detailing all terms, conditions, and costs transparently. This ensures complete transparency for the borrower.