Recently National Bank for Agriculture and Rural Development NABARD has launched a Joint Liability G...........

Economic Affairs Agricultural Finance

Recently National Bank for Agriculture and Rural Development (NABARD) has launched a Joint Liability Group (JLG) scheme. Which of the following is true about JLG?

1) JLG is same as Self Help Group.

2) Under JLG banks will finance only group activities.

3) JLG scheme will provide credit only for agricultural purpose.

Select the correct statement/s using codes given below.

1 only.

1 and 3

2 Only

2 and 3

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Explanation:

2nd statement is incorrect.

With an aim to provide institutional loans to small farmers NABARD (National Bank for Agriculture and Rural Development) came up with the concept of Joint Liability Groups (JLG). This is on a similar pattern of SHG (Self Help Groups) where NABARD provides refinance facility to banks for providing loans to small and marginal farmers. JLG schemes have proved very successful in North India especially UP, MP and Haryana.