Self-Help Groups (SHGs)
Self-Help Groups (SHGs) have emerged primarily to:
- Replace commercial banks entirely
- Fill the gap in the formal credit system — Correct Answer
- Provide foreign investment in rural areas
- Promote large-scale industrial growth
Explanation:
Correct Answer Explanation
Self-Help Groups (SHGs) have emerged to fill the gap in the formal credit system because the formal credit delivery mechanism has not only proven inadequate but has also not been fully integrated into the overall rural social and community development.
Key Points:
- SHGs promote thrift in small proportions by minimum contribution from each member.
- Credit is given from pooled money to needy members at reasonable interest rates.
- By May 2019, nearly 6 crore women in India became members in 54 lakh women SHGs.
- Such credit provisions are called micro-credit programmes.
- SHGs have helped in empowerment of women.
Why Other Options Are Wrong
- A: SHGs supplement, not replace commercial banks.
- C: SHGs are not related to foreign investment.
- D: SHGs focus on micro-credit, not large-scale industry.
📚 About this Topic — CH-5: RURAL DEVELOPMENT
This multiple choice question is from CH-5: RURAL DEVELOPMENT, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-5: RURAL DEVELOPMENT to strengthen your preparation.
