Indian Economy·MCQ Practice

Microfinance and SHGs — MCQ Practice

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Version 1Updated 7 Mar 2026

Interactive MCQ Practice

Test your knowledge. Click “Solve” to reveal options, select your answer, then check the result. 5 questions available.

Q1medium

Which of the following statements regarding the Self Help Group (SHG)-Bank Linkage Program (SBLP) in India is/are correct? 1. It was launched by the Reserve Bank of India (RBI) in 1992. 2. NABARD provides refinance support to banks for lending to SHGs. 3. SHGs primarily focus on providing collateral-free loans to their members. 4. The program has been instrumental in promoting financial inclusion among rural women.

Q2medium

Consider the following statements regarding Microfinance Institutions (MFIs) in India: 1. NBFC-MFIs are primarily regulated by the Small Industries Development Bank of India (SIDBI). 2. The Harmonized Regulatory Framework for Microfinance (2022) removed the interest rate cap for NBFC-MFIs. 3. Joint Liability Groups (JLGs) are a common lending methodology used by MFIs.

Q3easy

Which of the following government schemes is a successor to the Swarnajayanti Gram Swarozgar Yojana (SGSY) and focuses on mobilizing rural poor households into Self Help Groups (SHGs)?

Q4easy

The Andhra Pradesh Microfinance Crisis of 2010 primarily highlighted the need for:

Q5medium

Which of the following is NOT a typical characteristic of the Self Help Group (SHG) model?

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