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 financial 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?
Statement 1 is incorrect. The SHG Programme was originally initiated by the National Bank for Agriculture and Rural Development (NABARD) in 1992. Statement 2 is wrong / debatable. group is responsible to repay the loans that group has taken. If individual member takes personal loans in personal capacity then SHG’s other members may not be liable for it. However, in general sense it may be correct if examiner was thinking in some different content. Have to wait for the official answerkey. Statement 3 is correct. The Regional Rural Banks and Scheduled Commercial Banks support SHGs by providing them with loans and other financial services.