Which of the following statements about M1xchange's role in MSME financing is/are correct? 1. M1xchange provides collateral based loans to MSMEs. 2. M1xchange facilitates discounting of invoices and Bills of Exchange for MSMEs. 3. M1xchange functions as a credit rating agency for MSMEs. Select the answer using the code given below:

Which of the following statements about M1xchange's role in - MCQ (English)

UPSC CSE PRELIMS2026General Studies MSME Financing

Hard

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Which of the following statements about M1xchange's role in MSME 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:

Correct Answer: B — 2 only

Explanation:

M1xchange is a trade receivables discounting platform for MSMEs. So statement 2 is accepted because it facilitates invoice and bill discounting. It is not a collateral-loan provider or a credit-rating agency, so statements 1 and 3 are rejected.