UPSC Prelims 2023 Question:

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?

Explanation:

• In India, banks are the predominant agency for delivery of micro-credit. In 1970, Ilaben Bhat, founder member of ‘SEWA’(Self Employed Women’s Association) in Ahmadabad, had developed a concept of ‘women and micro-finance’. The Annapurna Mahila Mandal’ in Maharashtra and ‘Working Women’s Forum’ in Tamilnadu and many National Bank for Agriculture and Rural Development (NABARD)-sponsored groups have followed the path laid down by ‘SEWA’. ‘SEWA’ is a trade union of poor, self-employed women workers. So, statement 1 is not correct.
  
  
• In an SHG, all members are jointly responsible for the loans taken by individual members. So, statement 2 is correct.
  
  
• Both the Regional Rural Banks and Scheduled Commercial Banks support SHGs. So, statement 3 is correct.
  
  

So, only 2 statements are correct. 

Therefore, option (2) is the correct answer. 

Subject: Polity | Governance