BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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For which of the following reasons, NABARD has set up joint liability groups (JLG) of farmers?
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To facilitate delivery of credit to farmers
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To facilitate better delivery of credit to farmers through informal sources
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To facilitate better delivery of credit to share croppers and those who do not have their own land
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To facilitate better delivery of credit to farmers through Panchayats
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Explanation:
Detailed explanation-1: -A bank can finance a JLG in two ways, either financing to a group directly or to an individual in the group. In both cases, all members of a JLG are responsible for repaying the loan amount.
Detailed explanation-2: -Joint Liability Group (JLG) is an informal group comprising preferably of 4 to 10 individuals for the purposes of availing bank loan either individually or through the group mechanism against mutual guarantee.
Detailed explanation-3: -The correct answer is Facilitating credit flow for the promotion and development of agriculture.
There is 1 question to complete.