Question

Which of the following institutions launched the microfinance movement in India on a pilot basis in 1992?

• A. IIFCL
• B. NABARD
• C. SIDBI
• D. IFCI

Answer 1

Answer:

B. NABARD

• The institution that launched the microfinance movement in India on a pilot basis in 1992 was NABARD (National Bank for Agriculture and Rural Development).

• The beginning of the micro finance movement in India could be traced to the selfhelp group (SHG) - bank linkage programme (SBLP) started as a pilot project in 1992 by National Bank for Agricultural and Rural Development (NABARD).

• This programme not only proved to be very successful, but has also emerged as the most popular model of micro finance in India

• Other approaches like micro finance institutions (MFIs) also emerged subsequently in the country.