Question

Which financial institution primarily supports SHGs in India by providing microcredit?

• A. Reserve Bank of India (RBI)
• B. National Bank for Agriculture and Rural Development (NABARD)
• C. Securities and Exchange Board of India (SEBI)
• D. Industrial Development Bank of India (IDBI)

Answer 1

Answer:

B. National Bank for Agriculture and Rural Development (NABARD)

NABARD plays a key role in supporting SHGs through its Self-Help Group-Bank Linkage Program (SHG-BLP). It facilitates microcredit by linking SHGs to formal financial institutions, providing them with affordable loans to improve livelihoods.