BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following statements related to Micro Finance System is wrong?
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It provides micro credit having scope for small savings and remittance of funds
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It based on the principle of livelihood creation
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High volumes of low transactions done through this system
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None is wrong
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Explanation:
Detailed explanation-1: -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: -A Self Help Group (SHG) is a financial intermediary committee usually composed of 10–20 local women or men who provide financial assistance to its members by providing them finance in the a minimal interest rate. It is a part of micro financing as the amount of the loan is very minimum due to small group of people.
There is 1 question to complete.