BANKING AFFAIRS

Detailed explanation-1: -SHG means? Notes: A self-help group is a financial intermediary committee usually composed of 10 to 25 local women between the ages of 18 and 50. Most self-help groups are in India, though they can be found in other countries, especially in South Asia and Southeast Asia.

Detailed explanation-2: -A SHG is a group of about 10 to 20 people, usually women, from a similar class and region, who come together to form savings and credit organization. They pooled financial resources to make small interest bearing loans to their members. This process creates an ethic that focuses on savings first.

Detailed explanation-3: -Self Help Group – Bank Linkage Programme (SHG-BLP) What started as a pilot to link around 500 SHGs of poor to the formal financial institutions during the year 1992-93 has now become the largest microfinance programme in the world, in terms of the client base and outreach.

Detailed explanation-4: -Microfinance is a banking service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services. Microfinance allows people to take on reasonable small business loans safely, and in a manner that is consistent with ethical lending practices.

Detailed explanation-5: -Microfinance offerings include small loans – called microloans, savings accounts (microsavings) and insurance policies (microinsurance). Various lenders offer microloans, including nonprofit organizations, banks and credit unions.