SSC Selection Post 2025 PYQ — Question 12

Correct Answer

Formation of Self-Help Groups (SHGs)

Explanation

The primary focus and core strategy of the National Rural Livelihoods Mission (NRLM) is the structural formation and promotion of Self-Help Groups (SHGs) for rural poor households. Launched by the Ministry of Rural Development, the scheme aims to reduce poverty by organizing rural poor communities—particularly women—into institutional platforms like SHGs and their federations. Through these groups, the mission facilitates access to financial services, skill development, and sustainable livelihood opportunities.

The other options are incorrect because they represent entirely different flagship schemes or target areas of the government. Providing free food grains is handled under social security food programs like the National Food Security Act (NFSA) / PM-GKAY. Building rural roads is the core mandate of the Pradhan Mantri Gram Sadak Yojana (PMGSY). Finally, promoting urban employment falls under urban-centric schemes like the Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) rather than a rural mission.

Key Points

NRLM operates on the foundational belief that the poor have innate capabilities, and organizing them into affinity-based institutions like SHGs is essential to unlock their potential.

The mission focuses on social mobilization, universal financial inclusion, and fostering multiple livelihoods to ensure sustainable income growth at the household level.

Additional Facts

NRLM was formally renamed as Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM). It relies heavily on a community-driven implementation model, utilizing internal community resource persons (CRPs) who have themselves emerged from poverty through the SHG network. The program also injects revolving funds and community investment funds directly into active SHGs to build their initial financial corpus and encourage regular inter-loaning practices among members.

Important Questions and Answers

Question: Which funding support or initial capital is provided by the government directly to an SHG after its formation to catalyze financial discipline?

Answer: The government provides a Revolving Fund (RF) and a Community Investment Fund (CIF) to active SHGs to help them establish a financial base and begin internal lending operations.

Question: What is the specialized sub-scheme under DAY-NRLM that focuses specifically on providing self-employment training to rural youth through dedicated institutes?

Answer: The Rural Self Employment Training Institutes (RSETI) program operates under the broader NRLM framework to provide intensive skill training and facilitate bank linkages for rural youth looking to start micro-enterprises.