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UPSC Prelims 2023 Paper-1 📅 28 May, 2023

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
Result Summary
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UPSC Prelims
2023 • 28 May, 2023 • Paper-1
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?
Correct Answer
Only two
Subject: Economy.Context: Financial Inclusion (SHG Bank Linkage).Details: Statement 1 is incorrect; the SHG-Bank Linkage Programme was originally piloted and in......
Ref/Book : UPSC Prelims 2023
Ref. Subject Economy
Chapter -
Ref. Topic Banking and Finance
Pg. No -
💡 Analysis & Explanation
Subject ▼
Economy.
Context ▼
Financial Inclusion (SHG Bank Linkage).
Details ▼
Statement 1 is incorrect; the SHG-Bank Linkage Programme was originally piloted and initiated by NABARD in 1992, not SBI. Statement 2 is correct; SHGs operate on the principle of peer pressure and joint liability, where the group is collectively responsible for repayment. Statement 3 is correct; Commercial Banks, Regional Rural Banks (RRBs), and Cooperative Banks actively finance and support SHGs.
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