Consider the following statements: 1. The Self-Help Group (SHG) programme was originally initiated by the…

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?
  1. Only one
  2. Only two
  3. All three
  4. None

Solution

Per the official UPSC key, the answer is D. SHG-Bank linkage was pioneered by NABARD, not SBI — Statement 1 is wrong. Statements 2 and 3 are correct; most coaching keys marked B.

Asked in: UPSC Prelims 2023

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