Question

Which of the following promoted the concept of Self Help Groups (SHG) for financing the poor?

• A. NITI Aayog
• B. RBI
• C. NABARD
• D. Union Ministry of Labour

Hint:

NABARD pioneered the SHG-Bank Linkage Programme to promote micro-credit for the rural poor.

Answer 1

The Correct Option is C

NABARD (National Bank for Agriculture and Rural Development) has played a key role in promoting the Self Help Group (SHG)-Bank Linkage Programme.
This model links informal groups of 10–20 members (mostly women) to formal banking channels for micro-credit access.
The SHG movement in India started in the 1990s, and NABARD has been a pioneer in encouraging banks to lend to SHGs without collateral.
This model has significantly empowered rural women, increased savings habits, and improved financial inclusion.
Let’s look at the other options:
- NITI Aayog is a policy think-tank but not directly involved in SHG finance.
- RBI supports financial inclusion but does not run SHG programs.
- Union Ministry of Labour focuses on employment and labor laws, not SHG promotion.
Hence, the correct answer is (C) NABARD.