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. In 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?
(a) Only one
(b) Only two
(c) All three
(d) None
Explanation:
- The first statement is incorrect. The Self-Help Group (SHG) programme was initiated by NABARD and Reserve Bank of India under the guidelines of SHG-Bank Linkage Programme (SHG-BLP) in 1992.
- The second statement is correct. In an SHG, all members of a group take responsibility for a loan that an individual member takes.
- The third statement is also correct. Regional Rural Banks and Scheduled Commercial Banks support SHGs.
- So, two of the above statements are correct. The correct answer would be (b) Only two.
Inputs from Indian Economy Mindmap Notes and Current Affairs Notes
