Q. Consider the following statements regarding “the SHG Bank Linkage Project (SHG-BLP)”:
1.It was launched in 2002.
2.It is emerged as world’s largest microfinance project.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B

Explanation: The SHG Bank Linkage Project (SHG-BLP), launched in 1992, has blossomed into the world’s largest microfinance project.

  • The SHG movement, now in its 30th year, has emerged as a powerful intervention to cover the small and marginalised sections.
  • Currently, bank-linked SHGs are promoted through Central Government, State Governments, NGOs, etc.
  • They must practice the ‘Panchasutra’ of regular meetings, regular savings, regular inter-loaning, timely repayment and up-to-date books of accounts to avail of loans from banks.

Source: Economic Survey