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Question No. 144Interactive Test Mode
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Q144. Consider the following statements: 1. The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived. 2. In an SHG, all members of a group take responsibility for a loan that an individual member takes. 3. The Regional Rural Banks and Scheduled Commercial Banks support SHGs How many of the above statements are correct?

Consider the following statements:

  1. The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived.
  2. In an SHG, all members of a group take responsibility for a loan that an individual member takes.
  3. The Regional Rural Banks and Scheduled Commercial Banks support SHGs How many of the above statements are correct?
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2023 • Indian Economy

Correct Answer: Option (B) — Only two

Concept & Option Breakdown

Standard Reference Verified

Statement 1 is incorrect: The Self-Help Group-Bank Linkage Programme was conceptualized and launched by the National Bank for Agriculture and Rural Development (NABARD) in 1992, not the State Bank of India. Statement 2 is correct: SHGs operate on the principle of peer collateral and collective guarantee, where all group members share joint liability for individual loans. Statement 3 is correct: Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), and Cooperative Banks actively participate in providing credit and banking services to SHGs under the SHG-Bank Linkage Programme. Therefore, only two statements (2 and 3) are correct.

Elimination Heuristic & Exam Approach

Institutional attribution traps: Key rural microcredit schemes are typically initiated by NABARD rather than individual commercial banks like SBI.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2023 (Q144)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Banking & Financial System
Official Answer KeyOption (B) — Only two

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Frequently Asked Questions — UPSC Prelims 2023 Q144

What is the official answer for UPSC Prelims 2023 GS Paper I Question 144 (Indian Economy)?

The official UPSC answer key for this 2023 Indian Economy (Banking & Financial System) question is Option (B): "Only two". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2023 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Banking & Financial System". You can explore all repeated questions from Banking & Financial System in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Banking & Financial System UPSC Prelims question using option elimination?

Institutional attribution traps: Key rural microcredit schemes are typically initiated by NABARD rather than individual commercial banks like SBI.

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