Which of the following is a feature of Self-Help group?

Question

Question

This question was previously asked in

SSC CGL 2022 Tier-I Official Paper (Held On : 06 Dec 2022 Shift 4)

Answer 1

The correct answer is the group takes care of the debt recovery.

Key Points

The debt recovery is handled through the self-help organisation.
In the area of employment and income-generating activities, they work to increase the functional ability of the underprivileged and marginalised groups in society.
They provide collateral-free loans to groups of people who typically struggle to obtain loans from banks.
Also, they use group leadership and conversations to resolve disputes.
They are a crucial supplier of microfinance services to the underprivileged.
They serve as a conduit for official banking services to the underprivileged, particularly in rural areas.
Also, they urge the impoverished to develop a saving habit.

Additional Information

Self-Help Group
- The Self-Employed Women's Association was founded in 1970, marking the beginning of SHG in India (SEWA).
- The SHG Bank Linkage Programme of NABARD, which began in 1992, has expanded to become the largest microfinance programme in the world.
- Since 1993, SHGs have been able to open savings accounts with the RBI and NABARD. The SHG-Bank link programme was made possible thanks to this initiative, which also strengthened the SHG movement.
- The Swarn Jayanti Gram Swarozgar Yojana (SGSY), launched by the Indian government in 1999, aims to encourage rural SHG development and skill-based self-employment.
- The programme was expanded into a statewide movement in 2011, leading to the creation of the National Rural Livelihoods Mission (NRLM), the greatest poverty reduction initiative in the history of the planet.