| The self-help group bank linkage programme has been emerged as the major micro finance programme in the country. It is being implemented by: |
| 1. Commercial banks |
| 2. Regional-rural banks |
| 3. Cooperative banks |
| Choose the correct one: |
A) Only 1 and 2
B) Only 2 and 3
C) All 1, 2 and 3
D) Only 1 and 3
Correct Answer: C
Solution :
[c] The Self-help groups (SHG)-Bank linkage programme has emerged as the largest micro credit programme in the world. SHG-Banking linkage (SBL) programme for credit has been able to reduce transaction costs. It has enabled die banks to achieve better loan recovery and mobilize low cost deposits. The two important models/channels of microfinance involving credit linkages with banks in India are (i) SHG - Bank Linkage Model: This model involves the SHGs financed directly by the banks viz., CBs (Public Sector and Private Sector), RRBs and Cooperative Banks, (ii) MFI - Bank Linkage Model: This model covers financing of Micro Finance Institutions (MFIs) by banking agencies for on-lending to SHGs and other small borrowers.
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