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UPSC 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
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Not attemptedCorrect Answer: (b) Only two
The SHG–Bank Linkage Programme was piloted in 1992 by NABARD (not by the State Bank of India), so Statement 1 is incorrect. ([rbi.org.in](https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx?ID=608&utm_source=openai)) In SHGs (and JLGs) every member signs the loan document, making all jointly and severally liable—Statement 2 is correct. ([rbi.org.in](https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=9336)) RBI/NABARD guidelines involve Regional Rural Banks and Scheduled Commercial Banks as key lending partners to SHGs, so Statement 3 is correct. ([rbi.org.in](https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12808&utm_source=openai)) Thus two of the three statements are correct.
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Frequently Asked Questions
What is the correct answer to this UPSC 2023 Indian Economy question?▼
The correct answer is option (b): Only two. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Digital Payments & Financial Inclusion question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2023, GS Paper 1, as Question 74. It falls under Indian Economy > Digital Payments & Financial Inclusion.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Digital Payments & Financial Inclusion?▼
UPSC has asked 20 questions from Digital Payments & Financial Inclusion (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.