Which of the following statements is/are correct in regard to micro-finance?begin{enumerate}item Micro-credit extended by banks to individual is reckoned as a part of their priority sector lending.item RBI has prescribed a particular model for banks to provide micro-finance.item RBI has prescribed a particular model for banks to provide macro-finance.end{enumerate} Choose the correct answer using the codes given below:

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which of the following statements is/are correct in regard to micro-finance’?

A	1 only
B	2 only
C	Both 1 and 2
D	only 3

Explanation:

Detailed explanation-1: -C) It is the credit policy which does not cover the insurance of the borrower. D) It is mainly aimed to reduce the unemployment and poverty of a Country. Correct Answer: C) It is the credit policy which does not cover the insurance of the borrower.

Detailed explanation-2: -The correct answer is Large amounts of loans. A large amount of loan is not a basic principle of micro-financial institutions in India.

Detailed explanation-3: -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-4: -The objective of microfinance is similar to that of microcredit; its goal is to provide financial services to help encourage entrepreneurs in impoverished nations to act on their ideas and obtain the financial tools available to do so and to eventually become self-sustainable.

There is 1 question to complete.