Bank Theory

MCQs on Microfinance Institutions (MFIs) and Non-Banking Financial Companies (NBFCs) Sharpen your preparation for banking, finance, and RBI Grade B exams with these important MCQs covering Microfinance Institutions, SHGs, JLGs, and NBFCs including recent RBI regulations. Q1: When did the SHG-Bank Linkage Programme start in India? a) 1982 b) 1992 c) 2002 d) 2012 Answer: b) 1992 Q2: Which organization initiated the SHG-Bank Linkage Programme? a) SIDBI b) NABARD c) RBI d) SEBI Answer: b) NABARD Q3: The Grameen Bank Model is based on which concept? a) Individual Lending b) Peer-to-peer payments c) Group Lending and Social Collateral d) Government Guarantees Answer: c) Group Lending and Social Collateral Q4: In SHGs, the primary focus group is? a) Large corporates b) Farmers c) Lo...

Microfinance Institutions and NBFCs - Descriptive Notes Microfinance Institutions (MFIs) Evolution of Microfinance in India Microfinance in India began as an informal sector practice and gained structure with the NABARD-supported SHG-Bank linkage programme in the early 1990s. It aimed at providing financial services to low-income groups, particularly women. Grameen Bank Model Inspired by the success in Bangladesh, this model relies on group lending with peer pressure to ensure repayment. It emphasizes trust and social collateral. Delivery of Microfinance Self-Help Groups (SHGs) Joint Liability Groups (JLGs) MFIs including NBFC-MFIs SHG-Bank Linkage Programme Launched by NABARD in 1992, this program links informal groups of micro-entrepreneurs to banks for credit support. Over 1 crore SHGs have been linked so far. Joint Liability Groups (JLGs) A group-based model of lending for agriculture and allied activities. Ea...