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📈 Economy of Bihar (Civil Services Prep) Topic 5.6: Banking and Allied Sectors in Bihar (Complete Unabridged Modules)

Module 13: Micro-Finance, Self Help Groups & Financial Inclusion (PMJDY)

📖 Chapter 7 of 10 🧩 Module 15 of 18 ⏱️ ~2 min read 💡 1 MCQs
Topic Part 1 of 2

Microfinance delivers banking services to poor households through Self Help Groups (SHGs) and the SHG–Bank Linkage Programme (SHG-BLP). As of March 2018, there were 87.44 lakh SHGs linked to banks across India.


Table 5.6.2: Performance of SHGs in Bihar (March 2018)

  • Bank-Linked Household Coverage: 77.35 lakh households (up 35% from 57.33 lakh a year earlier).
  • Total Savings of SHGs with Banks: Rs. 983.8 crore.
  • Average Savings per SHG: Rs. 16,540 (well below national benchmark of Rs. 22,405).
  • Average Credit per SHG: Rs. 67,000 (far below national average of Rs. 1.50 lakh).
  • Bank Loan Disbursements (2017-18): Rs. 2,343.61 crore (up from Rs. 1,323.06 crore in 2016-17).
  • NABARD identified 16 districts in Bihar for promoting women SHGs via dedicated anchor NGOs.

Weaknesses of Micro-Finance in Bihar:

Absence of reputed NGOs, regional gaps, account opening delays, impounding savings as collateral, and refusal of repeat loans despite timely repayment.


Pradhan Mantri Jan Dhan Yojana (PMJDY):

Launched nationwide on August 28, 2014, as the National Mission on Financial Inclusion, guaranteeing universal access to banking with at least one basic account per household and a RuPay Debit Card featuring inbuilt accidental insurance of Rs. 1 Lakh. RBI instructed all banks to cover every unbanked village in Bihar by March 2016 via branch outlets and banking correspondents.

⭐ Key Points
  • Bank-Linked Household Coverage: 77.35 lakh households (up 35% from 57.33 lakh a year earlier).
  • Total Savings of SHGs with Banks: Rs. 983.8 crore.
  • Average Savings per SHG: Rs. 16,540 (well below national benchmark of Rs. 22,405).
  • Average Credit per SHG: Rs. 67,000 (far below national average of Rs. 1.50 lakh).
  • Bank Loan Disbursements (2017-18): Rs. 2,343.61 crore (up from Rs. 1,323.06 crore in 2016-17).
  • NABARD identified 16 districts in Bihar for promoting women SHGs via dedicated anchor NGOs.
📌 One-line Q&A
  • Bank-Linked Household Coverage: 77.35 lakh households (up 35% from 57.33 lakh a year earlier).
  • Total Savings of SHGs with Banks: Rs. 983.8 crore.
  • Average Savings per SHG: Rs. 16,540 (well below national benchmark of Rs. 22,405).
  • Average Credit per SHG: Rs. 67,000 (far below national average of Rs. 1.50 lakh).
  • Bank Loan Disbursements (2017-18): Rs. 2,343.61 crore (up from Rs. 1,323.06 crore in 2016-17).
  • NABARD identified ______ districts in Bihar for promoting women SHGs via dedicated anchor NGOs. — 16
Questions 1 MCQs

Answer this question, then use Next.

What was the average savings per Self Help Group (SHG) in Bihar as of March 2018?

Table 5.6.2 documents the average savings per SHG in Bihar as Rs. 16,540 as of March 2018.
Question 1 of 1

One-liners

Write your answer, then submit to see the correct answer.

Bank-Linked Household Coverage: ______ (up 35% from 57.33 lakh a year earlier).

77.35 lakh households

Total Savings of SHGs with Banks: ______.

Rs. 983.8 crore

Average Savings per SHG: ______ (well below national benchmark of Rs. 22,405).

Rs. 16,540

Average Credit per SHG: ______ (far below national average of Rs. 1.50 lakh).

Rs. 67,000

Bank Loan Disbursements (2017-18): ______ (up from Rs. 1,323.06 crore in 2016-17).

Rs. 2,343.61 crore

NABARD identified ______ districts in Bihar for promoting women SHGs via dedicated anchor NGOs.

16