Question

UPSC Prelims 2021 Question:

With reference to 'Water Credit

consider the following statements: 

  1. It puts microfinance tools to work in the water and sanitation sector. 
  2. It is a global initiative launched under the aegis of the World Health Organization and the World Bank. 
  3. It aims to enable the poor people to meet their water need without depending on subsidies.

Which of the statements given above are correct?

  1. 1. 1 and 2 only
  2. 2. 2 and 3 only
  3. 3. 1 and 3 only
  4. 4. 1, 2 and 3

Answer (Detailed Solution Below)

Option 3: 1 and 3 only

Detailed Solution

Explanation: 

  • WaterCredit is a powerful solution and the first to put microfinance tools to work in the water and sanitation sector. WaterCredit helps bring small loans to those who need access to affordable financing and expert resources to make household water and toilet solutions a reality. So, statement 1 is correct.

  • Water Credit is an initiative started by Water.org. It is a loan program to address the barrier of affordable financing for safe water and sanitation. Water.org is a global nonprofit organization working to bring water and sanitation to the world. So, statement 2 is not correct.

  • People in need use these small, affordable loans to put a tap or toilet in their homes and access local resources to do the work. It enables poor households to meet their water and sanitation needs without depending on subsidies. So, statement 3 is correct. 

Therefore, option (3) is the correct answer.

Subject: Economics | Financial Sectors and Capital Market

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