1. Banks lend to Self Help Groups (SHGs) based on the group's corpus. What is the typical ratio of Loan to Corpus for a mature SHG (2+ years old)?
1:1
1:2
1:4 (First dose) up to 1:8 (Later doses)
1:10 always
Explanation:
According to NABARD/RBI guidelines, the loan amount can be 4 times the corpus for the first dose, rising to 8 times (or ?20 Lakh, whichever is higher) for mature SHGs with a good repayment track record.
2. Before extending a bank loan to an SHG, the bank conducts a grading exercise. Which of the following is a key parameter for SHG grading?
Education level of members.
Asset size of individual members.
Regularity of meetings and savings.
Political affiliation.
Explanation:
The critical parameters for SHG grading (Panchasutra) are: Regular Meetings, Regular Savings, Regular Internal Lending, Regular Recoveries, and Maintenance of Books of Accounts.
3. The "Revolving Fund" provided to SHGs under NRLM is primarily meant to:
Pay the bank manager's fees.
Inculcate the habit of thrift and internal lending, and augment the corpus.
Repay old debts.
Buy land for the village.
Explanation:
Revolving Fund (RF) is a seed capital given to SHGs to supplement their own savings, allowing them to lend more internally and build financial discipline before accessing larger bank loans.
4. For opening a savings account of an SHG, what are the KYC requirements?
KYC of only the office bearers is sufficient.
KYC of all members is required.
PAN card of the SHG is mandatory.
No KYC is required as it is a group.
Explanation:
To simplify financial inclusion, RBI guidelines state that KYC verification of only the authorized office bearers (representatives) is sufficient to open an SHG account. KYC of all members is not needed.