Identify the INCORRECT statement/s concerning SHGs.
i. They include voluntary groups of up to 20 socially and economically homogeneous people.
ii. There is no need to follow the well-defined rules and bye-laws for SHGs.
iii. In April 1996, RBI declared SHG-BLP as a priority sector lending activity.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Only ii.
The incorrect statement concerning SHGs is ii: "There is no need to follow the well-defined rules and bye-laws for SHGs." This statement is false because SHGs are required to follow well-defined rules and bye-laws to ensure proper functioning and accountability.
- Statement i is correct because SHGs consist of up to 20 socially and economically homogeneous people.
- Statement iii is also correct as, in April 1996, the RBI declared SHG-BLP as a priority sector lending activity to support financial inclusion.