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
Correct Answer: Option C
Explanation
1. Statement 1 is correct. The Stand Up India Scheme was launched to facilitate bank loans between ₹10 lakh and ₹1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. Its core purpose is to promote entrepreneurship among these specific demographic groups.
2. Statement 2 is correct. The scheme operates through Scheduled Commercial Banks, but the Small Industries Development Bank of India (SIDBI) plays a crucial role by providing a refinance window to the lending institutions, along with managing the credit guarantee fund for the scheme.