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What is the full form of SHG in rural development?
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Answer: Option A — Self-Help Group
Detailed Solution
SHG stands for "Self-Help Group", a small, voluntary group of people, usually 10 to 20 members (mostly women) from similar economic backgrounds, who come together to save money, give small loans to each other and solve common problems.
How SHGs work:
- Members save small amounts of money regularly and pool their savings.
- The group lends money to members for their needs, such as starting small businesses, education or health emergencies, at reasonable interest rates.
- After a period of successful savings and lending, the group can get loans from banks without collateral.
- The groups hold regular meetings and keep records, which builds trust, leadership and financial discipline.
SHGs in India:
NABARD launched the "SHG-Bank Linkage Programme" (SBLP) in 1992 as a pilot, linking 500 SHGs with banks. It has grown into the largest microfinance programme in the world.
The "Deendayal Antyodaya Yojana-National Rural Livelihoods Mission" (DAY-NRLM, launched as "Aajeevika" in 2011) promotes SHGs among rural poor women. More than 10 crore women are members of about 90 lakh SHGs under it.
The "Lakhpati Didi" initiative (2023) aims to help 3 crore SHG women earn at least 1 lakh rupees a year.
"Namo Drone Didi" (2023) provides drones to SHGs for agricultural services.
"Kudumbashree" (1998) in Kerala is one of the largest women's SHG networks in India.
SHGs have also been important in Andhra Pradesh, Tamil Nadu and Telangana.
Benefits of SHGs:
- Financial inclusion of poor families.
- Women's empowerment and greater decision-making power.
- Reduced dependence on moneylenders.
- Promotion of livelihoods and small enterprises.
Origin of microfinance:
Muhammad Yunus founded the "Grameen Bank" in Bangladesh (formally in 1983), giving small loans to the poor, especially women. He and the Grameen Bank won the Nobel Peace Prize in 2006.
In India, the "Self-Employed Women's Association" (SEWA), founded by Ela Bhatt in 1972 in Ahmedabad, was an early pioneer.
Related abbreviations:
- NABARD: National Bank for Agriculture and Rural Development (1982).
- MFI: Microfinance Institution.
- JLG: Joint Liability Group.
Why not the other options?
- ✗"Social Health Group" is not the correct expansion.
- ✗"Small Household Grant" is not the correct expansion.
- ✗"State Housing Guarantee" is not the correct expansion.
Quick tip
Remember: SHG = Self-Help Group (10-20 members; SHG-Bank Linkage by NABARD, 1992; DAY-NRLM 2011; Lakhpati Didi 2023; Kudumbashree, Kerala, 1998); Grameen Bank = Muhammad Yunus (Nobel 2006); SEWA = Ela Bhatt (1972).
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This question tests your understanding of Poverty, Unemployment & Development, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.
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