Question

Which of the following is true about the Transition Buffer in MSME classification?

• A. Only new enterprises get it
• B. Applies only to Micro enterprises
• C. Allows businesses to continue availing MSME benefits for 3 years after crossing limits
• D. Guarantees unlimited loan amounts

Answer 1

Answer:

C. Allows businesses to continue availing MSME benefits for 3 years after crossing limits

The Transition Buffer provides a 3-year period for businesses exceeding limits to continue benefiting from MSME schemes like collateral-free loans.