Consider the following statements ;
1. The Self Help Group (SHG) programme Was originally initiated by the State Bank of India by providing microcredit to the financially deprived.
2. Is an SHG, all members of a group take responsibility for a loan that an individual member takes,
3. The Regional Rural Banks and Scheduled Commercial Banks support SHGs.
How many of the above statements are correct?
This questions was previously asked in
UPSC CSP Previous Year Paper (2023)
Only one
Incorrect AnswerAll three
Incorrect AnswerExplanation:
The Self Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived.
False. The concept of SHGs was not originally initiated by the State Bank of India. It started as a non-governmental initiative in the late 1970s and was later supported by the National Bank for Agriculture and Rural Development (NABARD) and other institutions. It gained prominence as a tool for financial inclusion.
In an SHG, all members of a group take responsibility for a loan that an individual member takes.
True. One of the fundamental principles of SHGs is joint liability, where every member is jointly and individually responsible for all loans taken by the group, ensuring that there's peer pressure for timely repayment.
The Regional Rural Banks and Scheduled Commercial Banks support SHGs.
True. Both Regional Rural Banks (RRBs) and Scheduled Commercial Banks provide loans to SHGs under various government and bank-led programs.
Given the evaluations, the correct answer is:
2. Only two.
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By: Parvesh Mehta