NABARD's Role in Promoting Self Help Groups (SHGs) Self Help Groups (SHGs) are small, often informal, groups of people facing similar problems who voluntarily come together to save regular small sums and meet their emergent needs. Typically, these groups consist of women, and their primary goal is to foster savings and provide mutual support, including access to credit. Understanding the Promotion of SHGs The question asks which institution specifically promoted the concept of Self Help Groups (SHGs) as a mechanism for financing the poor. Let's analyze the options:

• NITI Aayog: While NITI Aayog is the policy think tank of the Government of India and involved in various developmental initiatives, it wasn't the primary institution that pioneered and promoted the SHG financing model.
• RBI (Reserve Bank of India): The RBI plays a crucial role in regulating the banking sector and monetary policy. It has supported financial inclusion initiatives, including SHGs, but the specific promotion and development of the SHG-Bank Linkage Programme were spearheaded by another institution.
• NABARD (National Bank for Agriculture and Rural Development): NABARD has been the most significant promoter of the SHG concept for financing the poor in India. Starting in the early 1990s, NABARD initiated and developed the SHG-Bank Linkage Programme. This program acts as a crucial bridge, enabling SHGs to access credit directly from formal banks, thereby facilitating financial inclusion for marginalized communities.
• Union Ministry of Labour: This ministry focuses on issues related to labor welfare, employment, and working conditions. It is not directly involved in promoting financial mechanisms like SHGs for poverty financing.

Conclusion Based on its pioneering role in establishing the SHG-Bank Linkage Programme, NABARD is recognized as the institution that actively promoted the concept of Self Help Groups for financing the poor. This initiative has been vital in extending formal credit services to millions of people, particularly in rural and semi-urban areas.