UPSC Prelims 2023 · Question 94 of 97
UPSC Prelims 2023 question on SELF HELP Group Programme
- ExamUPSC CSE
- Year2023
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicBanking
- DifficultyHard
- TypeStatement
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?
Show answer
Answer: B. Only two
Verdict
Only statements 2 and 3 are correct → Option (b) Only two.
Statement by statement
Statement 1 – INCORRECT: The origin of self-help groups can be traced to the Grameen Bank of Bangladesh, which was founded by Mohamed Yunus. SGHs were started and formed in 1975. In India, NABARD initiated the SHG movement in 1986-1987 — not the State Bank of India.
Statement 2 – CORRECT: In an SHG, all members of a group take responsibility for a loan that an individual member takes. The cash credit facility is sanctioned by the bank to the SHG, and the sanction of credit by SHG to its individual members is guided as per their terms and duration as decided by the groups.
Statement 3 – CORRECT: RRBs are key financing institutions at the rural level, taking responsibility for fulfilling the credit requirements of Self Help Groups (SHGs). The RRBs also play a crucial role in SHG-Bank linkage and serve as SELF HELP PROMOTIONAL INSTITUTIONs (SHPIs). Scheduled commercial banks are also requested by government to support SHGs.