Consider the following statements comparing Self-Help Groups (SHGs) and Joint Liability Groups (JLGs):
1. While SHGs are generally savings-led institutions, Joint Liability Groups (JLGs) operate predominantly as credit-led models.
2. SHGs usually consist of 10 to 20 members, whereas JLGs are typically smaller configurations comprising 4 to 10 members.
3. Both SHGs and JLGs heavily utilize the socio-economic mechanism of peer pressure as a functional substitute for physical collateral.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. SHGs build internal savings before seeking external credit (savings-led). JLGs are formed primarily to immediately access bank credit for specific activities like farming (credit-led). JLGs are smaller (4-10) compared to SHGs (10-20). Both models fundamentally rely on mutual guarantee and peer pressure rather than asset collateral.
Consider the following statements regarding Community Resource Persons (CRPs) under DAY-NRLM:
1. CRPs are typically successful SHG members who are trained to mobilize and mentor new groups in other villages.
2. The utilization of CRPs heavily leverages social capital, as peer-to-peer learning is highly effective in rural empowerment strategies.
3. CRPs are permanent, pensionable government employees appointed by the Reserve Bank of India to audit SHG accounts.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The CRP model relies on "best practitioners"—women who have successfully come out of poverty through SHGs—traveling to teach other women. This peer-to-peer extension is highly effective. Statement 3 is incorrect; CRPs are community members paid an honorarium by the community networks or SRLMs, not permanent pensionable RBI employees.
Consider the following statements regarding the 2010 Andhra Pradesh Microfinance Crisis:
1. The crisis was triggered by an unprecedented and sudden drop in interest rates, which abruptly bankrupted all major MFIs in the state.
2. Following the crisis, the central government enacted a sweeping law to permanently forgive and wipe out all outstanding microfinance debt nationwide.
3. The crisis resulted in the immediate privatization of NABARD to exclusively handle the liquidation of defaulting Microfinance Institutions.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect; the crisis was caused by coercive recovery practices, usurious interest rates, and severe over-indebtedness leading to borrower suicides, not a drop in interest rates. Statement 2 is incorrect; the state passed an ordinance to restrict MFI operations, but there was no nationwide debt forgiveness law. Statement 3 is incorrect; NABARD remains a wholly-owned development bank of the GoI; it was not privatized.
Consider the following statements regarding the genesis of the SHG-Bank Linkage Programme (SBLP):
1. The SBLP was pioneered in India by NABARD as a nationwide pilot project in 1992.
2. The World Bank operates as the sole retail bank directly disbursing SBLP loans to village-level SHGs across India.
3. Under SBLP guidelines, an SHG can only be linked to a commercial bank if it holds a minimum internal deposit of Rs. 10 lakh.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only Statement 1 is correct. NABARD launched the SBLP pilot in 1992, making it the world's largest microfinance program today. Statement 2 is incorrect; the World Bank provides macro-level funding/support to the government, but retail loans are disbursed by domestic commercial banks, RRBs, and cooperative banks. Statement 3 is incorrect; SHGs require only nominal internal savings to begin linking with banks, typically starting with loan sizes proportional to their small corpus (e.g., 1:4 ratio).
Consider the following statements regarding the broader economic implications of the SHG movement:
1. Microfinance significantly enables financial inclusion by bringing the unbanked rural population into the formal financial and banking system.
2. The SHG model promotes a culture of thrift and savings among the rural poor before exposing them to external institutional credit.
3. Regular loan repayments by SHGs create a documented institutional credit history, making them eligible for progressively larger bank loans over time.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. Financial inclusion, instilling a savings habit, and building a credit history are the three foundational pillars of the SHG-Bank linkage model. Through disciplined repayment, groups "graduate" to higher loan doses, moving from consumption needs to building sustainable micro-enterprises.
Consider the following statements regarding the Start-up Village Entrepreneurship Programme (SVEP):
1. SVEP is implemented as a sub-scheme under the Make in India initiative directly by the Ministry of Corporate Affairs.
2. The scheme's primary objective is to facilitate the large-scale emigration of rural youth to urban technological hubs.
3. SVEP strictly provides 100% equity funding to rural start-ups without requiring any eventual repayment.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect; SVEP is a sub-scheme of DAY-NRLM under the Ministry of Rural Development. Statement 2 is incorrect; its objective is to help rural poor start and support rural enterprises, thereby preventing distress migration. Statement 3 is incorrect; SVEP provides support through Community Enterprise Funds (CEF) which are given as loans to entrepreneurs, not 100% free equity grants.
Consider the following statements regarding the micro-credit sector in India:
1. Micro-credit is legally defined as loans strictly below Rs. 10,000 provided exclusively for agricultural purposes.
2. The Malegam Committee submitted comprehensive recommendations specifically to address issues and regulate the Microfinance sector in India.
3. Interest rates charged by all Microfinance Institutions in India are currently capped at a fixed 15% per annum by the RBI.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only Statement 2 is correct. The Y.H. Malegam Committee was formed by the RBI to study issues and concerns in the MFI sector following the Andhra Pradesh crisis. Statement 1 is incorrect as micro-credit serves various consumption and enterprise needs, not just agriculture, and the threshold is much higher than Rs. 10,000. Statement 3 is incorrect because the RBI deregulated the specific interest rate cap for MFIs in 2022, granting them the freedom to set board-approved, non-usurious rates.
Consider the following statements regarding the Livelihood and Enterprise Development Programme (LEDP):
1. LEDP is an exclusive initiative of the Ministry of Commerce to boost large-scale industrial exports from Special Economic Zones.
2. The programme provides uncollateralized loans of up to Rs. 1 crore directly to individual SHG members for setting up large factories.
3. LEDP restricts its capacity-building and training programs exclusively to urban women self-help groups.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect; LEDP is an initiative of NABARD aimed at creating sustainable livelihoods for SHG members. Statement 2 is incorrect; it focuses on skill up-gradation, capacity building, and mentoring, not on providing massive Rs. 1 crore uncollateralized loans. Statement 3 is incorrect; the program has a strong focus on rural SHG members.
Consider the following statements regarding the SHG-Bank Linkage Programme (SBLP):
1. SBLP was launched by the Reserve Bank of India in 1992 as a statutory mandate for all commercial banks.
2. Only Self Help Groups registered under the Societies Registration Act are eligible to open savings accounts under the SBLP.
3. The Joint Liability Group (JLG) model under SBLP requires mandatory collateral from individual members to secure micro-loans.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect because SBLP was launched by NABARD, not the RBI, and it began as a pilot project, not a statutory mandate. Statement 2 is incorrect as unregistered SHGs are also allowed and encouraged to open savings bank accounts. Statement 3 is incorrect because the JLG model relies on mutual guarantee (peer pressure) rather than physical collateral.
Consider the following statements comparing the Grameen Bank Model and the Indian SHG Model:
1. The Grameen Bank model, pioneered in Bangladesh, focuses on forming small joint-liability groups primarily for direct, immediate bank lending.
2. The Indian SHG model places a stronger emphasis on internal savings and corpus building over several months before external bank linkage occurs.
3. Both models predominantly target women borrowers as a deliberate strategy to ensure better household welfare and repayment discipline.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. The Grameen model is credit-led (bank lends to groups immediately), whereas the Indian SBLP is savings-led (SHGs save internally for months before getting bank loans). Both heavily target women because studies show women invest more in family health/education and exhibit vastly superior repayment behavior.
Consider the following statements regarding the socio-economic impacts and dynamics of microfinance:
1. The 'Graduation Approach' in microfinance combines cash transfers, asset provision, and training to lift the ultra-poor out of extreme poverty.
2. Consumption loans form a significant portion of early-stage internal lending within SHGs to address immediate distress needs like health emergencies.
3. The disbursement of micro-credit mathematically guarantees the permanent eradication of poverty for the borrower within the first year.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The Graduation Approach is a proven methodology to help the ultra-poor who are not yet ready for pure micro-credit. SHGs use their internal savings heavily for consumption loans to smooth out income shocks and prevent reliance on moneylenders. Statement 3 is incorrect; micro-credit helps mitigate poverty, but it is not a guaranteed silver bullet, and factors like over-indebtedness can sometimes worsen conditions.
Consider the following statements regarding NABARD Financial Services Limited (NABFINS):
1. NABFINS is a subsidiary of NABARD that operates as a Non-Banking Financial Company (NBFC).
2. Its primary objective is to provide microfinance services directly or indirectly to the rural poor, ensuring transparent and reasonable interest rates.
3. NABFINS restricts its lending operations solely to funding large-scale infrastructure projects in tier-1 urban municipalities.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. NABFINS was established by NABARD to set a benchmark in the microfinance sector for fair practices and transparent pricing. Statement 3 is incorrect as its core mandate is providing micro-credit to SHGs and JLGs, not funding urban mega-infrastructure.
Consider the following statements regarding the role of Social Audits in the context of SHGs:
1. Social audits are utilized to evaluate the non-financial impacts of microfinance, such as women's empowerment and broader community development.
2. Gram Sabhas in India are often empowered to conduct social audits of rural development schemes involving SHGs.
3. Transparency in the selection of beneficiaries and the proper utilization of community funds are core components examined during a social audit.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. Social audits go beyond financial accounting to measure social impact. Gram Sabhas have the statutory mandate (e.g., under MGNREGA and NRLM frameworks) to conduct social audits, ensuring transparency, equity, and proper fund utilization at the grassroots level.
Consider the following statements regarding the regulatory mandates for NBFC-MFIs:
1. NBFC-MFIs are officially permitted to accept demand deposits from their borrowers to build a mandatory capital reserve.
2. The RBI mandates that NBFC-MFIs must charge an identical, single fixed interest rate across all borrowers and regions in India.
3. An NBFC-MFI can freely disburse microfinance loans to any individual irrespective of their household's annual income level.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect; NBFC-MFIs are strictly non-deposit taking entities. Statement 2 is incorrect; the 2022 RBI guidelines deregulated interest rates, allowing MFIs to set board-approved, risk-based rates rather than a single fixed rate. Statement 3 is incorrect; microfinance loans are strictly defined as collateral-free loans to households with an annual income up to Rs. 3,00,000.
Consider the following statements regarding the Bank Sakhi Model in India:
1. Bank Sakhis are carefully selected SHG members engaged as Business Correspondent (BC) agents to provide basic banking services in rural areas.
2. The model significantly helps in bridging the last-mile delivery gap for formal banking institutions.
3. Bank Sakhis are granted the statutory authority to independently sanction and disburse corporate loans up to Rs. 5 lakhs without bank approval.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The Bank Sakhi model utilizes the social capital of SHG women, employing them as BCs to facilitate transactions (deposits, withdrawals, remittances) in unbanked villages. Statement 3 is incorrect; BCs only facilitate transactions and act as intermediaries; they do not possess the authority to independently sanction or disburse credit.
Consider the following statements regarding the E-Shakti Project:
1. E-Shakti is a pilot project initiated by NABARD for the comprehensive digitization of Self Help Groups.
2. The project aims to integrate SHG members with national Credit Information Bureaus to facilitate better credit scoring and faster loan sanctioning.
3. It mandates that all SHG transactions must be settled exclusively using Central Bank Digital Currency (CBDC) to ensure end-to-end transparency.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. NABARD's E-Shakti project aims to digitize the financial and non-financial records of SHGs and link them with credit bureaus to improve access to formal credit. Statement 3 is incorrect as there is no such mandate involving the use of CBDCs for SHG transactions.
Consider the following statements regarding the Pradhan Mantri Mudra Yojana (PMMY) in the context of microfinance:
1. 'Shishu' loans under PMMY are categorized as loans up to Rs. 50,000 intended primarily for micro-entrepreneurs at the nascent stage.
2. Only Non-Banking Financial Company - Microfinance Institutions (NBFC-MFIs) are authorized to disburse Mudra loans.
3. PMMY functions by providing direct, non-repayable cash transfers to Self Help Groups to build their initial corpus.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only Statement 1 is correct. PMMY categorizes loans into Shishu (up to Rs. 50k), Kishore (50k-5L), and Tarun (5L-10L). Statement 2 is incorrect because Mudra loans are disbursed by a wide range of institutions including Commercial Banks, RRBs, Small Finance Banks, and MFIs. Statement 3 is incorrect; PMMY provides credit (loans) that must be repaid, not direct cash transfers or grants.
Consider the following statements regarding Joint Liability Groups (JLGs):
1. A JLG is an informal group comprising 4 to 10 individuals coming together for the purpose of availing bank loans against mutual guarantee.
2. JLGs are primarily targeted at tenant farmers, oral lessees, and sharecroppers who lack proper land title deeds.
3. The group members offer a mutual guarantee to the lending institution instead of providing individual physical collateral.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. JLGs consist of 4-10 members who rely on mutual guarantee (peer pressure) rather than collateral. This model was specifically designed by NABARD to help tenant farmers and sharecroppers who do not have the land titles necessary to secure traditional agricultural loans.
Consider the following statements regarding the technical calculation of microfinance interest rates:
1. Under current RBI regulations, microfinance loans must strictly be issued at a zero percent interest rate to qualify as Priority Sector Lending.
2. Microfinance institutions are prohibited from using the 'reducing balance' method for interest calculation, mandating the 'flat rate' method instead.
3. The Reserve Bank of India directly pays the interest amount on behalf of all microfinance borrowers to the respective NBFC-MFIs.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect; MFIs charge interest (often between 18-24%) based on their cost of funds, and these loans still qualify as PSL. Statement 2 is incorrect; the RBI strictly mandates the use of the 'reducing balance' method (not the flat rate) to ensure borrowers only pay interest on the outstanding principal. Statement 3 is incorrect; the RBI is a regulator, not a subsidy agency, and does not pay borrowers' interest.
Consider the following statements regarding the Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM):
1. DAY-NRLM is a centrally sponsored program implemented by the Ministry of Rural Development.
2. It explicitly aims to mobilize at least one woman member from every rural poor household into the Self Help Group network.
3. The scheme is entirely funded by external agencies like the World Bank without any budgetary contribution from the Government of India.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. DAY-NRLM operates under the Ministry of Rural Development and focuses on organizing rural poor women into SHGs. Statement 3 is incorrect because while it receives partial funding support from the World Bank, it is a Centrally Sponsored Scheme with funds heavily shared between the Centre and the States.
Consider the following statements regarding Village Organizations (VOs) under DAY-NRLM:
1. A Village Organization is a secondary-level federation comprising multiple Self Help Groups at the village or panchayat level.
2. VOs are legally barred from receiving the Community Investment Fund (CIF) and must rely entirely on the internal savings of their constituent SHGs.
3. VOs structurally replace the constitutional function of Gram Panchayats by taking over the collection of local property and water taxes.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only Statement 1 is correct. VOs are federations of SHGs. Statement 2 is incorrect; VOs are the primary recipients of the CIF from the government, which they then lend to their member SHGs. Statement 3 is incorrect; VOs are community-based organizations and do not replace or assume the constitutional tax-collecting powers of Gram Panchayats.
Consider the following statements regarding risk mitigation in the microfinance sector:
1. 'Multiple lending' refers to a high-risk situation where a single borrower takes loans from several different MFIs simultaneously beyond their repayment capacity.
2. Credit Information Companies (CICs) or credit bureaus play a crucial role in mitigating the risk of over-indebtedness by tracking borrower loan histories.
3. The Reserve Bank of India actively encourages unlimited multiple lending to ensure rapid and unrestrained credit expansion in rural markets.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. Multiple lending leads to over-indebtedness, which was a root cause of the AP microfinance crisis. To counter this, MFIs are mandated to use CICs to check a borrower's existing debt before issuing a new loan. Statement 3 is incorrect; the RBI places strict limits on the total indebtedness of a microfinance borrower to prevent loan spiraling.
Consider the following statements regarding the Interest Subvention Scheme under DAY-NRLM:
1. DAY-NRLM provides interest subvention to women SHGs to ensure they can access formal credit at a reduced, affordable interest rate.
2. All women SHGs in identified backward districts can avail of bank loans up to Rs. 3 lakh at an effective interest rate of 7% per annum.
3. The interest subvention scheme under NRLM is exclusively funded and managed by the International Monetary Fund (IMF).
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The Ministry of Rural Development operates an interest subvention scheme that caps the interest rate at 7% for loans up to Rs. 3 lakh for women SHGs in targeted districts (with further subvention for prompt repayment). Statement 3 is incorrect; it is a central sector component funded by the Government of India, not the IMF.
Consider the following statements regarding SEWA (Self-Employed Women's Association):
1. SEWA was founded by Medha Patkar primarily as an environmental conservation movement to protect the Narmada river.
2. SEWA functions purely as a recognized political party representing rural agricultural laborers in the national parliament.
3. The SEWA Bank, established to provide financial services to poor women, operates exclusively under the regulatory framework of the World Bank.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect; SEWA was founded by Ela Bhatt as a trade union for poor, self-employed women workers. Statement 2 is incorrect; SEWA is a trade union and cooperative movement, not a political party. Statement 3 is incorrect; SEWA Bank operates as a cooperative bank under the regulatory purview of the Reserve Bank of India, not the World Bank.
Consider the following statements regarding the governance and inclusiveness of DAY-NRLM:
1. The implementation of DAY-NRLM is highly centralized, with the Prime Minister's Office directly managing every SHG without any state intervention.
2. Adult males are strictly and legally barred from benefiting from any livelihood interventions or producer groups under the DAY-NRLM framework.
3. Self-Help Groups are legally recognized as constitutional bodies under the 73rd Amendment Act, structurally replacing the Gram Sabhas.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect; DAY-NRLM is decentralized and implemented through State Rural Livelihood Missions (SRLMs). Statement 2 is incorrect; while SHGs are primarily for women, the livelihood interventions target the entire household, and men can be part of Farmer Producer Organizations (FPOs) and producer groups. Statement 3 is incorrect; SHGs are informal community organizations (sometimes registered as societies), not constitutional bodies.
Consider the following statements regarding the role of Non-Governmental Organizations (NGOs) in microfinance:
1. NGOs functioning as microfinance intermediaries are legally prohibited from charging any interest on the loans they disburse.
2. Under the SHG-Bank Linkage Programme, NGOs frequently act as Self Help Promoting Institutions (SHPIs) to organize and train groups.
3. All NGOs engaged in microfinance operations must mandatorily transform into Scheduled Commercial Banks within 5 years of operation.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only Statement 2 is correct. NGOs play a critical role as SHPIs, nurturing SHGs until they are credit-linked with banks. Statement 1 is incorrect; NGO-MFIs charge interest to cover operational costs and maintain sustainability. Statement 3 is incorrect; there is no legal mandate for NGOs to transform into commercial banks, though some do voluntarily transition into NBFCs or Small Finance Banks for greater scale.
Consider the following statements regarding NABARD's Project E-Shakti:
1. Project E-Shakti involves the comprehensive digitization of both the financial and non-financial records of SHGs on a dedicated central portal.
2. The digitization process auto-generates a credit grading for the SHGs, facilitating quicker and more transparent bank linkages.
3. E-Shakti mandates that all SHGs must dissolve their physical cash boxes and exclusively conduct intra-group transactions using cryptocurrency.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. E-Shakti digitizes SHG records, which brings transparency and auto-generates grades that banks use to appraise and sanction credit rapidly. Statement 3 is incorrect; there is no mandate involving cryptocurrency; digital bookkeeping simply tracks standard INR transactions.
Consider the following statements regarding vulnerability targeting and social tools in SHGs:
1. Participatory Rural Appraisal (PRA) techniques are frequently utilized by SHPIs to identify the poorest and most vulnerable households in a village.
2. SHGs often employ a 'wealth ranking' or 'well-being ranking' exercise to prioritize the distribution of internal credit among their members.
3. Vulnerability Reduction Funds (VRF) are provided to SHG federations specifically to address sudden shocks like health emergencies affecting their members.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. PRA tools like social mapping and wealth ranking are standard DAY-NRLM practices to ensure the poorest are not left out and receive credit priority. The Vulnerability Reduction Fund (VRF) is a specific corpus given to Village Organizations to help members facing extreme distress (e.g., severe illness, food insecurity) without pushing them into debt traps.
Consider the following statements regarding the impact and history of Microfinance in India:
1. Empirical studies consistently demonstrate that microfinance exclusively solves rural poverty without any instances of borrower over-indebtedness.
2. The Andhra Pradesh Microfinance Crisis of 2010 was largely triggered by coercive recovery practices and multiple lending by aggressive MFIs.
3. As a direct result of the AP crisis, the Government of India permanently banned the operation of all private Microfinance Institutions across the country.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only Statement 2 is correct. The 2010 AP crisis highlighted the severe issues of multiple lending, usurious rates, and coercive recovery tactics leading to borrower suicides. Statement 1 is incorrect; over-indebtedness remains a critical vulnerability in the microfinance model. Statement 3 is incorrect; instead of a ban, the RBI intervened, setting up the Malegam Committee which led to strict regulation (creation of the NBFC-MFI category) to discipline the sector.
Consider the following statements regarding livelihoods promotion under DAY-NRLM:
1. The Mission adopts a demand-driven approach, allowing community institutions to plan and implement capacity-building and livelihood interventions.
2. SHGs are increasingly being integrated into local government procurement systems, such as supplying supplementary nutrition to Anganwadi centers.
3. The promotion of non-farm rural livelihoods, such as handicrafts, retail trading, and services, is a core objective of DAY-NRLM.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. DAY-NRLM is participatory and demand-driven. States widely use SHGs for institutional procurement (like Take-Home Rations for ICDS/Anganwadis or stitching school uniforms). While agriculture (MKSP) is a huge component, promoting non-farm livelihoods (through schemes like SVEP) is critical to diversifying rural incomes.
Consider the following statements regarding the social empowerment aspects of the SHG movement:
1. Membership in an SHG frequently leads to increased participation of women in household financial decision-making and resource allocation.
2. SHG federations often transcend financial intermediation to actively take up social issues such as domestic violence, alcoholism, and child marriage.
3. Interaction with formal institutions like banks, government offices, and local markets significantly enhances the spatial mobility and confidence of rural women.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. The SHG movement goes far beyond micro-credit; it builds social capital. Economic independence translates into household bargaining power. Federations act as pressure groups against social evils, and the sheer act of traveling to a bank or block office breaks spatial barriers for women in conservative rural settings.
Consider the following statements regarding the current regulation of Microfinance in India:
1. In 2022, the RBI introduced a uniform regulatory framework applicable to all regulated entities (banks, NBFCs) operating in the microfinance sector.
2. A microfinance loan is strictly defined by the RBI as a collateral-free loan given to a household having an annual income up to Rs. 3,00,000.
3. The framework mandates that out of total loans, an NBFC-MFI must have at least 95% of its assets strictly in the form of microfinance loans.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The RBI's 2022 framework created a level playing field across all entity types and defined a microfinance loan based solely on the household income limit (Rs. 3 lakh) and its collateral-free nature. Statement 3 is incorrect; the 2022 guidelines revised the qualifying asset criteria, stating that an NBFC-MFI must have at least 75% (not 95%) of its total assets in the form of microfinance loans.
Consider the following statements regarding the Revolving Fund (RF) provided to SHGs:
1. The Revolving Fund is a corpus provided to SHGs to strengthen their institutional capacity and build a robust internal credit history.
2. SHGs are required to immediately return the Revolving Fund to the government with an 8% interest rate within one financial year.
3. Only SHGs that have successfully completed 10 years of continuous existence are eligible to receive the Revolving Fund.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only Statement 1 is correct. The Revolving Fund acts as an incentive and augments the group's corpus for internal lending. Statement 2 is incorrect; the RF is a grant to the group's corpus, not a loan to be returned to the government. Statement 3 is incorrect; SHGs typically become eligible for the RF after just 3 to 6 months of active, disciplined functioning.
Consider the following statements regarding Priority Sector Lending (PSL) and microfinance:
1. Loans disbursed by commercial banks directly to Self Help Groups are strictly excluded from the Priority Sector Lending targets.
2. Bank credit provided to Microfinance Institutions (MFIs) for the purpose of on-lending to SHGs is strictly prohibited under current RBI guidelines.
3. Only Public Sector Banks are mandated to fulfill Priority Sector Lending targets concerning micro-credit, fully exempting Private Sector Banks.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect; loans to SHGs are a key component of PSL (usually categorized under weaker sections/agriculture). Statement 2 is incorrect; bank credit to MFIs for on-lending is actively permitted and qualifies as Priority Sector Lending. Statement 3 is incorrect; PSL targets apply to all commercial banks, including private and foreign banks operating in India.
Consider the following statements regarding the PM SVANidhi scheme:
1. The PM SVANidhi scheme was launched to provide collateral-free working capital loans exclusively to large-scale retail supermarket chains.
2. Borrowers under PM SVANidhi are penalized with an additional 7% interest rate if they repay their loans before the scheduled tenure.
3. The scheme strictly prohibits the use of digital transactions, requiring all loan repayments to be made in physical cash at bank branches.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect; PM SVANidhi is designed for street vendors, not large supermarket chains. Statement 2 is incorrect; borrowers are rewarded with an interest subvention of 7% per annum for timely or early repayment, not penalized. Statement 3 is incorrect; the scheme actively incentivizes and promotes digital transactions through cashbacks.
Consider the following statements regarding the RBI's Regulatory Framework for Microfinance Loans (2022):
1. The pricing of microfinance loans is completely deregulated and subject only to a board-approved policy ensuring non-usurious interest rates.
2. NBFC-MFIs are legally mandated to charge a universal flat 24% interest rate across all loan products and geographic regions.
3. The RBI mandates that borrowers must deposit a 10% cash security margin before any microfinance loan can be disbursed.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only Statement 1 is correct. The 2022 guidelines removed the interest rate cap, allowing board-approved, risk-based pricing. Statement 2 is incorrect; there is no fixed 24% mandate under the new rules. Statement 3 is incorrect; microfinance loans are strictly collateral-free, and demanding a security margin violates the definition of a microfinance loan.
Consider the following statements regarding Priority Sector Lending (PSL) in the context of microfinance:
1. Loans disbursed by banks to NBFC-MFIs for the purpose of on-lending to small and marginal farmers are eligible for classification under Priority Sector Lending.
2. Bank credit provided directly to SHGs strictly falls under the 'Corporate Lending' portfolio and is categorically excluded from PSL targets.
3. The RBI stipulates that all microfinance loans must be issued in foreign currency to shield rural borrowers from domestic retail inflation.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only Statement 1 is correct. Bank loans to MFIs for on-lending to priority sectors (like agriculture or micro-enterprises) qualify as PSL. Statement 2 is incorrect; direct loans to SHGs are a major component of PSL (usually under 'Weaker Sections'). Statement 3 is incorrect; microfinance loans in India are disbursed in domestic currency (INR).
Consider the following statements regarding the institutional framework of the microfinance sector:
1. Microfinance institutions are expressly forbidden by law from acting as corporate agents for micro-insurance and micro-pension products.
2. Foreign Direct Investment (FDI) is completely banned in the microfinance sector in India to protect domestic rural markets.
3. Small Finance Banks were created with the sole objective of lending to large infrastructure projects that commercial banks refuse to fund.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect; MFIs are actively encouraged to distribute micro-insurance and pension products to build borrower resilience. Statement 2 is incorrect; 100% FDI is permitted in the microfinance (NBFC) sector under the automatic route. Statement 3 is incorrect; Small Finance Banks were created precisely to serve micro-enterprises, small farmers, and unorganized sector entities, not large infrastructure projects.
Consider the following statements regarding the capitalization mechanisms under DAY-NRLM:
1. The Community Investment Fund (CIF) is intended to be a revolving fund kept in perpetuity by the SHG federations to lend to their members.
2. The Revolving Fund (RF) is a one-time grant that must be fully utilized to pay the personal income taxes of the SHG office bearers.
3. CIF disbursements are categorically banned from being utilized for the purchase of agricultural inputs, livestock, or setting up micro-enterprises.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only Statement 1 is correct. The CIF is retained by the Village Organization in perpetuity as a revolving fund to lend to SHGs. Statement 2 is incorrect; the RF is meant to augment the group's corpus for internal lending, not to pay personal income taxes. Statement 3 is incorrect; the primary purpose of the CIF is exactly to fund livelihood activities like buying agricultural inputs, livestock, and starting enterprises.
Consider the following statements regarding the qualification and operations of NBFC-MFIs:
1. An NBFC-MFI is a non-deposit taking NBFC whose core business is providing microfinance loans to specified segments.
2. A microfinance loan is strictly defined as a collateral-free loan given to a household with an annual income of up to Rs. 3 lakh.
3. NBFC-MFIs are subject to the Fair Practices Code prescribed by the RBI, which strictly prohibits coercive methods of loan recovery.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. These statements define the core regulatory structure of an NBFC-MFI under the RBI's 2022 harmonized framework. They cannot take deposits, must focus on collateral-free loans to households earning up to Rs. 3 lakh, and are tightly bound by a Fair Practices Code to prevent borrower harassment.
Consider the following statements regarding the Aajeevika Grameen Express Yojana (AGEY):
1. AGEY is a centralized initiative designed to provide free high-speed broadband internet to SHGs via satellite links.
2. The scheme was launched primarily to export SHG-manufactured agricultural goods via dedicated international air-freight corridors.
3. Only fully foreign-owned multinational corporations are eligible to operate passenger vehicles under the AGEY scheme.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. AGEY is a sub-scheme under DAY-NRLM aiming to provide safe, affordable, and community-monitored rural transport services to connect remote villages. The vehicles are operated by SHG members or their federations, providing an alternative livelihood source, not by MNCs, and it has nothing to do with satellite internet or air-freight.
Consider the following statements regarding Microfinance Institutions (NBFC-MFIs) in India:
1. NBFC-MFIs are non-deposit-taking financial companies regulated by the Reserve Bank of India.
2. A qualifying asset for an NBFC-MFI entails a collateral-free loan provided to a borrower belonging to a low-income household.
3. The RBI's regulatory framework for microfinance loans applies uniformly to all regulated entities including commercial banks and NBFC-MFIs.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. NBFC-MFIs are regulated by the RBI and are explicitly barred from taking public deposits. A qualifying asset is defined by its collateral-free nature directed at households with an annual income up to Rs. 3,00,000. In 2022, the RBI harmonized the microfinance guidelines, making the rules uniform across all regulated entities (banks, SFBs, NBFC-MFIs).
Consider the following statements regarding microfinance linkages to the agricultural sector:
1. Individual SHG members who are engaged in farming are eligible to avail the benefits of the Kisan Credit Card (KCC) scheme.
2. Joint Liability Groups (JLGs) are heavily utilized by banks to channel agricultural credit to tenant farmers and sharecroppers who lack land ownership titles.
3. Microfinance regulations strictly forbid SHGs from borrowing for allied agricultural activities such as animal husbandry or dairy farming.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. SHG members doing agriculture can get KCCs. JLGs were specifically designed by NABARD to bypass the collateral issue for landless tenant farmers so they could access crop loans. Statement 3 is incorrect; animal husbandry and dairy are among the most common and actively promoted livelihood activities funded through microfinance.
Consider the following statements regarding the structural characteristics of Self Help Groups (SHGs) in India:
1. SHGs are typically homogeneous groups of 10-20 individuals who belong to a similar socio-economic background.
2. The concept fundamentally relies on regular savings pooled together to create a common fund for intra-group lending.
3. Peer pressure and mutual trust within the group serve as a substitute for traditional collateral, ensuring high repayment rates.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. SHGs are defined by their homogeneity (10-20 poor individuals, mostly women). They begin by pooling small savings, using this corpus to lend internally. This builds financial discipline, and peer pressure acts as social collateral, leading to exceptionally high repayment rates when they are eventually linked to banks.
Consider the following statements regarding the Business Correspondent (BC) model and Financial Inclusion:
1. The BC model allows non-bank entities and individuals to act as agents and provide basic banking services in remote, unbanked areas.
2. Members of Self-Help Groups are legally prohibited from acting as Business Facilitators or Business Correspondents due to conflicts of interest.
3. The BC model explicitly permits correspondents to independently sanction and disburse large-scale corporate loans on their own authority.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only Statement 1 is correct. The BC model extends the reach of banks using local agents. Statement 2 is incorrect; SHG members are actively recruited as 'Bank Sakhis' (BCs) because their social trust makes them highly effective banking agents. Statement 3 is incorrect; BCs facilitate transactions (deposits, withdrawals, remittances) and help in loan application sourcing, but they do not have the authority to sanction credit.
Consider the following statements regarding Self-Help Promoting Institutions (SHPIs):
1. Non-Governmental Organizations (NGOs) frequently act as SHPIs to mobilize, train, and nurture Self-Help Groups in their initial formative stages.
2. Commercial banks and Regional Rural Banks (RRBs) are permitted to function as SHPIs to actively promote and credit-link SHGs.
3. A primary role of an SHPI involves capacity building, which includes teaching basic financial literacy and bookkeeping protocols to SHG members.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. SHPIs are the catalysts that form and nurture SHGs. NGOs play a massive role as SHPIs, but banks (commercial, RRBs, cooperatives) and government agencies also act as SHPIs. Their core job is capacity building, financial literacy, and facilitating bank linkages.
Consider the following statements regarding the Mahila Kisan Sashaktikaran Pariyojana (MKSP):
1. MKSP is implemented as a sub-component of the Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM).
2. It seeks to improve the present status of women in agriculture and enhance the opportunities for their systemic empowerment.
3. A key focus area of MKSP is the promotion of sustainable agriculture practices, such as agro-ecology, among women farmers.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. MKSP is a dedicated sub-scheme under DAY-NRLM. It explicitly recognizes the role of women in agriculture and seeks to empower them by building their capacity in sustainable, climate-resilient agricultural practices (agro-ecology).
Consider the following statements regarding the 'Panchasutra' principles adopted by SHGs:
1. Holding regular, periodic group meetings is one of the core principles followed by SHGs under DAY-NRLM.
2. Regular savings and regular internal lending are mandatory practices for an SHG to be considered institutionally healthy.
3. Maintaining proper and transparent books of accounts is a prerequisite for an SHG to receive formal credit linkage from banks.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. The 'Panchasutra' refers to five cardinal principles: regular meetings, regular savings, regular internal lending, regular recoveries, and proper maintenance of books of accounts. These are critical for the grading of an SHG before it receives bank credit.
Consider the following statements regarding the structural principles and regulation of microfinance in India:
1. The concept of microfinance in India originated primarily to cater to the long-term financing needs of large-scale corporate industries.
2. Self-Help Groups (SHGs) under DAY-NRLM are required to practice 'Panchasutra' (five cardinal principles) for maintaining good institutional health.
3. The Malegam Committee recommended the complete abolition of the Non-Banking Financial Company - Microfinance Institution (NBFC-MFI) category.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only Statement 2 is correct. 'Panchasutra' (regular meetings, savings, internal lending, recoveries, and bookkeeping) is the foundation of healthy SHGs. Statement 1 is incorrect; microfinance originated to serve the unbanked poor, not large-scale corporate industries. Statement 3 is incorrect; the Malegam Committee actually recommended the creation of the NBFC-MFI category to better regulate the sector.
Consider the following statements regarding the Community Investment Support Fund (CISF) under DAY-NRLM:
1. The CISF is typically routed to the primary SHGs exclusively through their higher-level federations like Village Organizations (VOs).
2. The fund is intended to be used by SHGs to advance loans to their members for livelihood activities, enterprise creation, and debt swapping.
3. The CISF acts as a direct individual subsidy and is permanently deposited directly into the personal savings accounts of the SHG leaders.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The CISF is transferred to VOs, which then lend it to SHGs to support the livelihood activities of the members. Statement 3 is incorrect; the CISF is meant to be a revolving loan fund retained at the community level (within the VO/SHG), not a personal subsidy or grant given to individual leaders.
Consider the following statements regarding the Start-up Village Entrepreneurship Programme (SVEP):
1. SVEP provides crucial financial support through the Community Enterprise Fund (CEF) to help rural entrepreneurs set up their businesses.
2. The programme focuses exclusively on setting up heavy manufacturing units in rural areas, strictly avoiding the services and retail sectors.
3. SVEP mandates that rural enterprises established under the scheme must be fully owned by the state government for the first five years.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only Statement 1 is correct. The CEF is a key component of SVEP to fund rural start-ups. Statement 2 is incorrect; SVEP heavily supports non-farm sectors including retail trade, services, and small manufacturing. Statement 3 is incorrect; the enterprises are owned by individual rural entrepreneurs or SHG members, not the state government.
Consider the following statements regarding Digital Financial Inclusion for SHGs:
1. The use of the 'Dual Authentication' system using Aadhaar has been entirely banned by the RBI for any transactions involving SHG accounts.
2. Digital bookkeeping initiatives for SHGs aim to reduce manual accounting errors, improve transparency, and quicken the bank credit appraisal process.
3. Under the Digital India campaign, it is legally mandatory for all individual SHG members to own a smartphone to be eligible for formal bank linkage.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only Statement 2 is correct. Digitizing SHG records (like NABARD's E-Shakti) creates a reliable financial track record, aiding swift credit linkage. Statement 1 is incorrect; dual authentication allows multiple authorized SHG signatories to approve a transaction digitally and is actively promoted. Statement 3 is incorrect; while digital literacy is promoted, owning a smartphone is not a mandatory legal prerequisite for an SHG to be credit-linked with a bank.
Consider the following statements regarding the India Microfinance Equity Fund (IMEF):
1. IMEF was established and is exclusively managed by the Reserve Bank of India to provide direct equity to commercial banks.
2. The fund is designed predominantly to bail out systematically important Scheduled Commercial Banks during periods of severe financial distress.
3. Only Foreign Institutional Investors (FIIs) are permitted to contribute to the financial corpus of the IMEF.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect; IMEF is managed by SIDBI (Small Industries Development Bank of India), not the RBI, and it provides equity to smaller, grassroots MFIs, not commercial banks. Statement 2 is incorrect; its purpose is to help unserved/underserved MFIs scale up, not to bail out large commercial banks. Statement 3 is incorrect; it was largely funded by the Government of India.
Consider the following statements regarding the institutional support mechanisms for microfinance:
1. NABARD operates the Microfinance Development and Equity Fund (MFDEF) to promote and support microfinance activities.
2. NABARD provides refinance assistance to commercial banks, RRBs, and cooperative banks for their lending to Self Help Groups.
3. NABARD directly opens savings accounts for individual SHG members and disburses retail micro-loans directly to them.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. NABARD manages the MFDEF and acts as a refinancing agency, providing bulk funds to banks that lend to SHGs. Statement 3 is incorrect because NABARD is an apex development bank; it does not engage in direct retail banking (like opening individual savings accounts or disbursing direct micro-loans to citizens).
Consider the following statements regarding the structure and function of SHG Federations:
1. SHG federations aggregate the economic demands of individual SHGs, granting them stronger bargaining power in local and regional markets.
2. Higher-tier federations like Cluster Level Forums (CLFs) act as financial intermediaries, routing bulk government funds to lower-level village organizations.
3. SHG federations are formally recognized under the Constitution as the lower house of the state legislature in the Indian parliamentary system.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. Federations (Village Organizations, Cluster Level Forums) provide economies of scale, better market bargaining power, and manage larger community funds (like CIF). Statement 3 is incorrect; SHG federations are community-based organizations (usually registered as trusts, societies, or cooperatives) and have no constitutional legislative status.
Consider the following statements regarding the operational limits of the SHG-Bank Linkage Programme (SBLP):
1. The SBLP guidelines strictly prohibit Regional Rural Banks (RRBs) from financing Self-Help Groups.
2. The concept of 'micro-credit' entails that borrowers must surrender title deeds to their primary residence as physical collateral.
3. Only individuals formally recognized and listed as 'Below Poverty Line' (BPL) by the state government can legally form an SHG.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect; RRBs and Cooperative Banks are primary drivers of the SBLP alongside commercial banks. Statement 2 is incorrect; a defining feature of micro-credit is that it is collateral-free. Statement 3 is incorrect; while SHGs target the poor, individuals marginally above the poverty line can also join (DAY-NRLM permits up to 30% non-poor members in an SHG).
Consider the following statements regarding Financial Inclusion initiatives impacting SHGs:
1. The PM Jan Dhan Yojana completely replaced the SHG-Bank Linkage Programme by offering direct, unlimited overdraft facilities to all rural women.
2. The establishment of Small Finance Banks (SFBs) was partly aimed at supplying credit to micro enterprises, small farmers, and unorganized sector entities.
3. Self Help Groups are legally prohibited from utilizing the Business Correspondent (BC) model for expanding their financial reach in remote areas.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only Statement 2 is correct. SFBs were created to deepen financial inclusion for micro-borrowers. Statement 1 is incorrect; PMJDY runs parallel to and complements SBLP (it offers a limited overdraft of Rs. 10,000, not unlimited, and didn't replace SBLP). Statement 3 is incorrect; SHG members are actively trained and deployed as Business Correspondents (e.g., Bank Sakhis) to provide last-mile banking.
Consider the following statements regarding the Kudumbashree Mission:
1. Kudumbashree was launched by the Government of India as a nationwide poverty eradication mission in 1998.
2. The apex tier of the Kudumbashree organizational structure is the Area Development Society (ADS) at the ward level.
3. Kudumbashree focuses exclusively on micro-credit and explicitly avoids interventions in local self-governance and agriculture.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect as Kudumbashree is the poverty eradication and women empowerment program implemented by the State Government of Kerala, not the GoI. Statement 2 is incorrect because the three-tier structure comprises Neighborhood Groups (NHGs) at the base, ADS at the ward level, and the Community Development Society (CDS) at the apex (panchayat) level. Statement 3 is incorrect as Kudumbashree is heavily involved in agriculture, local governance, and social empowerment, far beyond just micro-credit.
Consider the following statements regarding the challenges faced by the SHG movement in India:
1. Many SHGs suffer from a severe lack of adequate marketing facilities, quality control, and branding for the artisanal products they manufacture.
2. Uneven geographical spread is a major structural issue, with southern states historically having a disproportionately higher concentration of SHGs compared to the northeast.
3. Elite capture within the group, where influential or wealthier members monopolize the benefits of bank loans, remains a significant operational challenge.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. Lack of market linkages restricts the scale of SHG enterprises. The movement has historically been skewed towards states like Andhra Pradesh, Telangana, Kerala, and Tamil Nadu. Elite capture undermines the poverty-alleviation core of the movement, as dominant members often capture the lion's share of the subsidized credit.
Consider the following statements regarding the intersection of Gender and Microfinance in India:
1. Over 90% of the beneficiaries of the SHG-Bank Linkage Programme in India are women.
2. Empirical evidence indicates that providing credit directly to women has a higher positive impact on children's nutrition and education compared to lending to men.
3. The legal framework of India strictly prohibits men from forming Self Help Groups under any circumstances.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The SBLP is overwhelmingly female-dominated, driven by the economic consensus that women prioritize household welfare, nutrition, and education when their income increases. Statement 3 is incorrect; while the primary focus of government schemes is on women, there is no legal prohibition against men forming SHGs (and men's SHGs do exist, particularly for farmers/artisans).