BANKING AFFAIRS

Detailed explanation-1: -Hence, we can say that NABARD promoted the concept of Self Help Groups (SHGs) for financing the poor.

Detailed explanation-2: -SHG Movement The setting-up of NABARD and the introduction of SHG-bank linkage programme by NABARD acted as a catalyst for the development of SHGs.

Detailed explanation-3: -In 1991-92 NABARD started promoting self-help groups on a large scale. And it was the real take-off point for the ‘SHG movement’. In 1993, the Reserve Bank of India also allowed SHGs to open saving accounts in banks. Facility of availing bank services was a major boost to the movement.

Detailed explanation-4: -Apart from extending refinance support of 100% to the financing Banks, NABARD also extends financial support for awareness creation and capacity building of all stakeholders under the Scheme. NABARD also extends grant support for formation and nurturing of JLGs to Banks and other JLG Promoting Institutions (JLGPIs).