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
Correct answer
Explanation
The correct answer is B, Only two. Statements 2 and 3 are correct; statement 1 is not. The SHG movement in banking was started by NABARD, not the State Bank of India. NABARD launched the SHG-Bank Linkage Programme as a pilot in 1992, linking 500 groups to banks, after its studies of informal savings groups in the 1980s. Statement 2 is correct because an SHG works on joint liability and peer pressure: the group borrows and lends to members, and all members stand responsible if one member does not repay, which replaces the need for collateral. Statement 3 is correct because commercial banks, Regional Rural Banks and cooperative banks all lend to SHGs, and such lending counts as priority sector lending. Option A is wrong because two statements, not one, are correct. Option C is wrong because statement 1 is false. Option D is wrong because statements 2 and 3 are true. Exam tip: SHG-Bank Linkage Programme = NABARD, 1992; SHGs are the base of DAY-NRLM.
Practice Questions
View allConsider the following statements about 'Ude Desh ka Aam Nagrik (UDAN)' scheme :
1. It is an innovative scheme to develop the regional aviation market.
2. It creates affordability yet economically viable and profitable flight on regional routes.
Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
Show answer
UDAN is the regional connectivity scheme meant to grow regional air travel and make it affordable while keeping the routes viable for airlines.
Read the full explanation →Which one of the following Five-Year Plan documents was titled as "Towards Faster and More Inclusive Growth"?
- A.Eighth Plan
- B.Ninth Plan
- C.Tenth Plan
- D.Eleventh Plan
Show answer
The Eleventh Five-Year Plan (2007–2012) carried the title "Towards Faster and More Inclusive Growth". The Eleventh Plan was prepared by the Planning Commission under Prime Minister Manmohan Singh, with Montek Singh Ahluwalia as Deputy Chairman.
Read the full explanation →The Fourteenth Finance Commission assigned different weights to the following parameters for distribution of tax proceeds to the States :
1. Income distance
2. Population
3. Demographic changes
4. Area
Arrange the aforesaid parameters in descending order in terms of their weights.
- A.1-2-3-4
- B.1-2-4-3
- C.1-3-2-4
- D.4-3-2-1
Show answer
Income distance had the highest weight, followed by population, area and demographic change. The Fourteenth Finance Commission, chaired by Y.V.
Read the full explanation →Which one of the following statements for a firm's equilibrium in Perfect Competition is not correct ?
- A.The market price must be greater or equal to average variable cost in the short run.
- B.The market price must be equal to marginal cost.
- C.The market price must be equal to average cost in the long run.
- D.The marginal cost decreases at the equilibrium output.
Show answer
This statement is not correct, because at the equilibrium of a competitive firm marginal cost must be rising. A firm in perfect competition is a price taker, so the price it gets equals its marginal revenue.
Read the full explanation →Plan allocation in agriculture and irrigation as percentage of total plan outlay was highest in :
- A.Seventh Five-Year Plan
- B.Third Five-Year Plan
- C.First Five-Year Plan
- D.Second Five-Year Plan
Show answer
The First Plan (1951 to 1956) gave agriculture, community development and irrigation about a third of its outlay, the highest share in any Indian plan.
Read the full explanation →