UPSC CSE Prelims
Question 20
Consider the following statements :
- The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived.
- In an SHG, all members of a group take responsibility for a loan that an individual member takes.
- The Regional Rural Banks and Scheduled Commercial Banks support SHGs.
How many of the above statements are correct?
View correct answer and explanation
Correct answer: B
Correct Option: B (Only two)
Explanation: The NABARD-backed SHG–Bank Linkage Programme, not SBI alone, expanded collective savings and credit; SHGs use mutual responsibility and bank support.
Statement / Pair / Item-wise Analysis:
1. Incorrect/False - The SHG–Bank Linkage Programme was piloted and promoted by NABARD, not originally launched by SBI.
2. Correct/True - SHG members typically undertake collective responsibility and peer accountability for borrowing.
3. Correct/True - Regional Rural Banks and scheduled commercial banks provide linkage and credit to SHGs.
Option-wise Analysis:
A. Incorrect-it counts 1, but items 2, 3 qualify, giving 2.
B. Correct-exactly 2 of the 3 listed items satisfy the condition.
C. Incorrect-it counts 3, but only 2 qualify; item(s) 1 do not.
D. Incorrect-it counts 0, but items 2, 3 qualify, giving 2.