Which institution launched the Self-Help Group - Bank Linkage Programme in 1992-93?
NABARD
Understanding the Self-Help Group - Bank Linkage Programme (SHG-BLP)
The question asks about the specific institution responsible for launching a significant rural development initiative in India, the Self-Help Group - Bank Linkage Programme (SHG-BLP), during the financial year 1992-93.
The Self-Help Group - Bank Linkage Programme is a major microfinance model in India. It aims to link informal Self-Help Groups (SHGs) of poor people, primarily women, with formal banking institutions. This linkage allows SHGs to access credit from banks after demonstrating financial discipline through regular savings and internal lending.
Identifying the Launching Institution
The programme was officially launched in 1992-93. To determine the launching institution, we need to consider the roles of the organizations listed in the options:
- NABARD (National Bank for Agriculture and Rural Development): NABARD is a development bank focused on rural development in India. It is the apex regulatory body for regional rural banks and cooperative banks.
- IDBI (Industrial Development Bank of India): IDBI was a development financial institution primarily focused on industrial finance.
- SIDBI (Small Industries Development Bank of India): SIDBI focuses on the development and financing of Micro, Small, and Medium Enterprises (MSMEs).
- SBI (State Bank of India): SBI is a major public sector commercial bank in India, involved in various banking activities including rural lending, but typically participates in programmes initiated by apex bodies.
Considering the mandate of these institutions, NABARD, with its core focus on agriculture and rural development, was the most appropriate body to initiate a programme aimed at poverty reduction and financial inclusion in rural areas through SHGs.
NABARD's Role in SHG-BLP
NABARD played a pivotal role in conceptualizing, piloting, and scaling up the SHG-Bank Linkage Programme. It provided guidance, training, and refinance support to banks to encourage them to lend to SHGs. The programme started as a pilot project and gradually expanded, becoming a cornerstone of microfinance in India.
Therefore, based on the historical context and the roles of the institutions, NABARD was the institution that launched the Self-Help Group - Bank Linkage Programme in 1992-93.
| Institution | Primary Focus | Role in SHG-BLP |
|---|---|---|
| NABARD | Agriculture and Rural Development | Launched and Promoted SHG-BLP (1992-93), provided refinance |
| IDBI | Industrial Finance | Not the launching institution for SHG-BLP |
| SIDBI | MSME Finance | Not the launching institution for SHG-BLP |
| SBI | Commercial Banking (including rural) | Participates in SHG-BLP as a lending bank, but did not launch it |
Revision Table: Key Facts about SHG-BLP
| Feature | Description |
|---|---|
| Programme Name | Self-Help Group - Bank Linkage Programme (SHG-BLP) |
| Launching Institution | NABARD |
| Launch Year | 1992-93 |
| Objective | Financial inclusion, poverty reduction, empowering rural poor (especially women) |
| Mechanism | Linking informal SHGs with formal banks for savings and credit |
Additional Information on Rural Finance Initiatives
The SHG-Bank Linkage Programme is part of broader efforts towards financial inclusion and rural development in India. NABARD has been instrumental in various such initiatives, including:
- Providing refinance to financial institutions for rural lending.
- Promoting the formation and strengthening of SHGs.
- Supporting rural infrastructure development.
- Promoting financial literacy and awareness in rural areas.
The success of the SHG-BLP model has been widely recognized globally as an effective way to deliver financial services to the poor.
Important Questions from RRBs & NABARD
NABARD launched a special pilot project in 2004 - 05 called _______ mainly to fulfil the credit needs of the small and marginal farmers and tenant farmers.
Which institution had launched the project E-Shakti for the digitization of all members of self-help groups in India?
Where is the headquarters of National Bank for Agriculture and Rural Development of India (NABARD) located?
______ came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation.
The novel Self-Help Group Bank Linkage Program (SHG-BLP) project which grew into a dominant micro finance model, was piloted by ______.
