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 a

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Q: 94 (IAS/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?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,11,8,5,11,3,0

Option 1 states that the SHG program was initiated by the State Bank of India. This is incorrect as it was actually started by NGOs and only later supported by banks.

Option 2 posits that all members of an SHG are responsible for a loan taken by an individual member. This is correct. The essence of SHGs is collective responsibility and mutual support, thus if one member takes a loan, all group members share the responsibility of repayment.

Option 3 suggests that both Regional Rural Banks and Scheduled Commercial Banks support SHGs. This is also correct. These banks provide microcredit facilities to SHGs under various government and self-initiated schemes.

Therefore, only options 2 and 3 are correct. If a student chooses option 1, they incorrectly believe the State Bank of India initiated the SHG program. If they choose option 4, they believe none of the statements are true, which is also inaccurate. Hence, the correct answer provided is indeed `Only two`.