With reference to WaterCredit', 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 needs without depending on subsidies. Which of the statements given above are correct?

Defines microfinance as provision of small loans, savings, insurance and fund-transfer services to poor households, showing the types of financial tools that could finance household water/sanitation investments.

A student could infer that household-level sanitation (e.g., latrine construction) might be financed using microloans described here and then check if WaterCredit offers such small loans for sanitation.

Notes promotion of Microfinance Institutions (MFIs) to provide microcredit to the poor and mentions institutional support (NABARD refinancing) — indicating MFIs are used to channel small loans for developmental needs.

One could extend this by checking whether MFIs or refinancing mechanisms have been applied specifically to water/sanitation projects (as WaterCredit would do).

Describes a community sanitation campaign that increased household toilet construction and use, implying demand for small-scale household sanitation investments.

A student could link demonstrated local demand for toilets to the need for accessible financing (microloans) and then investigate whether WaterCredit supplies such financing to meet that demand.

National water policy emphasises treating water as an economic good and managing water projects with community participation, suggesting funding mechanisms and local financing models may be appropriate for water services.

Use this policy idea to reason that microfinance models (community-level loans) could be compatible with water-sector goals and then look for WaterCredit examples aligning microfinance with water policy objectives.

SDG listing includes improving clean water and sanitation and building partnerships, indicating development agendas support blended approaches (finance + programs) to reach water/sanitation goals.

A student might infer that microfinance partnerships could be one such approach under SDG efforts and then verify whether WaterCredit is an example of such finance–sector partnership for WASH (water, sanitation, hygiene).

National Water Policy 2012 recommends treating water as an 'economic good' to promote conservation and efficient use, implying market-based approaches rather than blanket subsidies.

A student could combine this with basic knowledge of market instruments and ask whether micro-loans or cost-recovery models (rather than subsidies) are promoted to help the poor secure water services.

Textbook example describes how access to affordable credit (bank loans at reasonable interest) enables a poor farmer to obtain pumpsets and other inputs to draw water.

A student could infer that credit-based solutions (microcredit for water infrastructure) are a non-subsidy route to meeting water needs and check if WaterCredit follows that model.

Observation that subsidised power leads to inappropriate use of water shows that subsidies can distort water usage and sometimes be counterproductive.

Using this, a student might reason that initiatives could prefer targeted financing or cost-recovery mechanisms over subsidies to avoid distortion and promote efficiency.

Discussion of subsidies notes their role in anti-poverty policy and the ways governments disburse them, highlighting trade-offs and limitations of subsidy-based support.

A student could use this general critique to consider whether alternative approaches (e.g., credit, pay-for-service) are advocated for water access instead of ongoing subsidies.

Argument that services (including supply of water) are essential and cannot always be purchased implies the need for sustainable delivery mechanisms beyond one-off income transfers or subsidies.

A student might combine this with basic knowledge of service delivery models to explore whether financing mechanisms enabling users to pay for/finance water infrastructure (not subsidies) are promoted.