Q14 · UPSC current affairs · 29 August 2026 · PIB · PARIVARTAN Scheme Delhi-NCR Vehicle Fleet Modernisation

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The term 'Interest Subvention', often seen in financial and economic contexts related to modernization schemes, refers to:

A A penalty levied on delayed tax payments by commercial enterprises.
B A financial subsidy provided by the government to reduce the interest burden on loans taken by targeted beneficiaries.
C The maximum interest rate charged by commercial banks on vehicle loans.
D A tax rebate given on the purchase of hybrid vehicles.

Correct answer: (b) A financial subsidy provided by the government to reduce the interest burden on loans taken by targeted beneficiaries.

Explanation

Option B is correct as interest subvention is defined as a financial subsidy provided by the government to reduce the interest burden on loans taken by targeted beneficiaries. Options A, C, and D describe entirely different financial concepts.

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