Q. ’SHG Bank Linkage Programme’ is a program which encourages India’s banks to lend to self-help groups (SHGs) composed mainly of poor women, this has evolved into an important Indian tool for microfinance. This programe was initiated by ?
Answer: National Bank for Agriculture and Rural Development (NABARD)
Notes: SHG Bank linkage programme: Under SBLP, SHGs so formed get linked to banks via NGOs commonly known as Self Help Promoting Institutions (SHPI), by opening savings account. As per operational guidelines of NABARD, SHGs may be sanctioned savings linked loans by banks (varying from a saving to loan ratio of 1:1 to 1:4).

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