was established between informal groups SHGs and formal financial institutions banks for catering t...........

General Studies (CHSL) Banking Awareness

_______________ was established between informal groups (SHGs) and formal financial institutions (banks) for catering to the

financial needs of the poor.

This questions was previously asked in

SSC CHSL 9th June 2022 Shift-2

View All SSCCHSL Previous Year Papers

SHG-Bank linkage

SIDBI-MFI linkage

NABARD-Bank linkage

SHG-NABARD linkage

Explanation:

- SHG-Bank linkage: This option refers to the Self-Help Group-Bank Linkage Program in India. It was established to connect informal self-help groups with formal financial institutions like banks. This initiative helps in addressing the financial needs of the poor by providing microcredit.

- SIDBI-MFI linkage: This linkage is related to the Small Industries Development Bank of India (SIDBI) working with Microfinance Institutions (MFIs) to support small and medium enterprises. It's not specifically about SHGs.

- NABARD-Bank linkage: NABARD is the National Bank for Agriculture and Rural Development. It facilitates various programs, but the direct SHG linkage is commonly referred to as SHG-Bank linkage.

- SHG-NABARD linkage: While NABARD supports SHGs, the formal recognition of the linkage system typically refers to SHG-Bank Linkage Program rather than a specific SHG-NABARD linkage.

SHG-Bank linkage is the correct answer.