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)?
1:4 (First dose) up to 1:8 (Later doses)
1:2
1:10 always
1:1
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?
Asset size of individual members.
Political affiliation.
Regularity of meetings and savings.
Education level of members.
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:
Repay old debts.
Inculcate the habit of thrift and internal lending, and augment the corpus.
Buy land for the village.
Pay the bank manager's fees.
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?
PAN card of the SHG is mandatory.
KYC of only the office bearers is sufficient.
KYC of all members is required.
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.