Question

Which of the following promoted the concept of Self Help Groups (SHGs) for financing the poor?
1. NITI Aayog
2. RBI
3. NABARD
4. Union Ministry of Labour

Answer 1

Correct Answer - Option 3 : NABARD

The correct answer is NABARD.

• NABARD came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC).
• Mission
  • Promote sustainable and equitable agriculture and rural development through participative financial and non-financial interventions, innovations, technology, and institutional development for securing prosperity.
• NABARD, through its Micro Credit Innovations Department, has continued its role as the facilitator and mentor of microfinance initiatives in the country.
• The overall vision of the department is to facilitate sustained access to financial services for the unreached poor in rural areas through various microfinance innovations in a cost-effective and sustainable manner.
• NABARD developed the model of Self Help Group – Bank Linkage Programme as a cost-effective mechanism for providing financial services to the unreached and underserved poor households.
• NABARD is implementing and supporting the implementation of various Schemes announced by Govt. of India viz. Promotion of Women SHGs (WSHGs), National Rural Livelihoods Mission (NRLM) of Ministry of Rural Development, etc.
• Hence, we can say that NABARD promoted the concept of Self Help Groups (SHGs) for financing the poor.