Question : Identify the incorrect statement/s concerning Self-help groups.
i. They include voluntary groups of up to 20 socially and economically homogenous people.
ii. There is no need to follow well-defined rules and bylaws for SHGs.
iii. In April 1996, RBI declared SHG-BLP a priority sector lending activity.
Option 1: ii and iii
Option 2: Only i
Option 3: Only iii
Option 4: Only ii
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Correct Answer: Only ii
Solution : The correct option is Only ii .
Self-help groups typically have well-defined rules and bylaws to govern their functioning. These rules help ensure transparency, accountability, and smooth operation within the group. SHGs need clear guidelines to ensure financial and social cooperation among their members.
Statement 2 is wrong because all the others are true regarding SHG.
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