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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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The Self-Help Group (SHG) program was not initially started by the State Bank of India (SBI). Instead, organizations like SEWA, Annapurna Mahila Mandal, Working Women's Forum, and NABARD-sponsored groups played a significant role in its initiation. Therefore, statement 1 is incorrect.

In an SHG, all members collectively share the responsibility for the loans taken by individual members. This collective responsibility fosters peer support and ensures timely repayment of loans. Hence, statement 2 is correct.

SHGs receive support from both Regional Rural Banks (RRBs) and Scheduled Commercial Banks (SCBs). These banks provide financial services and credit facilities to SHGs, playing a crucial role in assisting their financial needs. Thus, statement 3 is correct.


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