Bank Theory

Self-Help Groups (SHGs) - Notes and MCQs Self-Help Groups (SHGs) Definition A Self-Help Group (SHG) is a small, voluntary association of people—typically from the same socio-economic background—who come together to save small amounts regularly, contribute to a common fund, and use the fund to meet emergency needs through mutual help and internal lending. Need for SHGs To promote financial inclusion and reduce dependence on informal money lenders. To empower marginalized communities, especially women, through collective decision-making. To promote savings and build creditworthiness. To enhance access to formal banking systems and livelihood support. Forming SHGs SHGs usually consist of 10-20 members from similar social and economic backgrounds. Members save a fixed amount monthly. The group selects a leader and maintains records of savin...

Government Sponsored Schemes - Banking Notes and MCQs Government Sponsored Schemes 1. Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) Launched in 2011 by the Ministry of Rural Development, DAY-NRLM aims to alleviate rural poverty by organizing poor households into Self Help Groups (SHGs) and providing them access to financial services, skill development, and livelihood opportunities. Key Features: Universal social mobilization and promotion of SHGs Financial inclusion through access to bank credit Training and capacity building Support for livelihood activities Example: A rural woman forms a SHG with 10 members and receives a loan of ₹2,00,000 under DAY-NRLM for starting a dairy business. 2. Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM) Launched in 2014, DAY-NULM focuses on the urban poor by enhancing their livelihood opportunities through skill tra...