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
1:4 (First dose) up to 1:8 (Later doses)
1:10 always
1:2
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?
Regularity of meetings and savings.
Asset size of individual members.
Education level of members.
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:
Inculcate the habit of thrift and internal lending, and augment the corpus.
Buy land for the village.
Pay the bank manager's fees.
Repay old debts.
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 all members is required.
No KYC is required as it is a group.
KYC of only the office bearers is sufficient.
PAN card of the SHG is mandatory.
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.