20 MCQs on E-Bill System: Fertiliser Subsidy Management Quiz

Team Member Jan 05, 2026

The E-Bill System, launched by Union Minister JP Nadda, digitizes fertiliser subsidy claims worth around ₹2 lakh crore annually to enhance transparency and efficiency in India's subsidy management. This end-to-end online platform replaces manual paperwork with digital workflows, built-in verifications, and audit trails, reducing delays and fraud risks.



Key Features

  • Fully electronic processing from claim submission by fertiliser companies to government approval and payment.

  • Automated checks against rules to prevent errors, duplications, or misuse.

  • Digital recording of all actions for complete accountability.

MCQs

1. Who inaugurated the E-Bill System for fertiliser subsidies?
A. Prime Minister Narendra Modi
B. Union Minister JP Nadda
C. Finance Minister Nirmala Sitharaman
D. Agriculture Minister Shivraj Singh Chouhan

Answer: B
Explanation: JP Nadda, Union Minister for Chemicals and Fertilizers, launched the system in New Delhi to strengthen governance.

2. What is the approximate annual value of fertiliser subsidies processed by the E-Bill System?
A. ₹1 lakh crore
B. ₹2 lakh crore
C. ₹3 lakh crore
D. ₹50,000 crore

Answer: B
Explanation: The platform handles claims worth around ₹2 lakh crore yearly, a major public expenditure for affordable fertilisers.

3. Under which ministry was the E-Bill System launched?
A. Ministry of Agriculture
B. Ministry of Finance
C. Ministry of Chemicals and Fertilizers
D. Ministry of Commerce

Answer: C
Explanation: It falls under the Ministry of Chemicals and Fertilizers, responsible for subsidy administration.

4. What was the primary issue replaced by the E-Bill System?
A. High fertiliser prices
B. Manual physical file processing
C. Farmer protests
D. Import dependencies

Answer: B
Explanation: Earlier, subsidies involved physical files, manual checks, and delays; now it's fully digital.

5. What is a key benefit of the E-Bill System for governance?
A. Increases subsidy amounts
B. Creates digital audit trail
C. Reduces fertiliser production
D. Limits farmer access

Answer: B
Explanation: All actions are digitally recorded, enabling transparency and reducing fraud opportunities.

6. The E-Bill System ensures payments only after:
A. Manual signatures
B. System-based verification
C. Court approval
D. State government nod

Answer: B
Explanation: Built-in checks verify bills against predefined rules before approval.

7. What does the E-Bill System promote in administration?
A. More paperwork
B. Technology-driven, corruption-free processes
C. Slower payments
D. Offline monitoring

Answer: B
Explanation: It minimises human intervention for objective, efficient decision-making.

8. Fertiliser subsidies in India primarily support:
A. Industrial growth
B. Food security and affordable prices for farmers
C. Export revenues
D. Urban development

Answer: B
Explanation: Subsidies keep urea and phosphatic fertilisers affordable amid high global prices.

9. The E-Bill platform is described as:
A. Partially digital
B. End-to-end online digital platform
C. Mobile-only app
D. Paper-based upgrade

Answer: B
Explanation: It covers the entire workflow from companies to government digitally.

10. What risk does the system reduce through verification?
A. Weather impacts
B. Errors, duplication, or misuse of funds
C. Global price hikes
D. Farmer migration

Answer: B
Explanation: Predefined rules and digital trails prevent irregularities.

11. Where was the E-Bill System inaugurated?
A. Mumbai
B. New Delhi
C. Lucknow
D. Hyderabad

Answer: B
Explanation: The launch occurred in New Delhi by the Union Minister.

12. The system introduces what for every bill?
A. Physical inspection
B. Built-in checks and controls
C. Lottery-based approval
D. Annual review only

Answer: B
Explanation: Automated controls ensure financial discipline before payments.

13. India relies on fertiliser subsidies due to:
A. Low domestic production
B. High global prices and import dependence
C. Excess stockpiles
D. Reduced farming

Answer: B
Explanation: This controls fiscal burden while ensuring supply stability.

14. The E-Bill System minimises:
A. Digital records
B. Human intervention
C. Subsidy budgets
D. Company claims

Answer: B
Explanation: Less manual handling promotes objective administration.

15. What is a major outcome of faster subsidy processing?
A. Delayed farmer payments
B. Uninterrupted fertiliser supply
C. Higher taxes
D. Reduced imports

Answer: B
Explanation: Quicker payments protect farmers from market shocks.

16. The platform creates a clear:
A. Verbal record
B. Audit trail
C. Printed log
D. Email chain

Answer: B
Explanation: Digital recording of all file actions aids accountability.

17. Which fertilisers benefit from these subsidies?
A. Only organic
B. Urea and phosphatic fertilisers
C. Only pesticides
D. Seeds only

Answer: B
Explanation: Subsidies target key chemical fertilisers for affordability.

18. The launch reflects government's focus on:
A. Traditional methods
B. Digital financial governance
C. Reducing subsidies
D. Privatisation

Answer: B
Explanation: It marks a shift to transparent, tech-enabled processes.

19. Subsidy claims now move digitally from:
A. Farmers directly
B. Fertiliser companies to government
C. Banks only
D. States to centre

Answer: B
Explanation: Integrated workflow streamlines company submissions.

20. Efficient management helps control India's:
A. Export surplus
B. Fiscal burden on subsidies
C. Private investments
D. Food exports

Answer: B
Explanation: Optimised processes manage large budget allocations effectively.

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