Q1. What is Self-Help Groups (SHGs) / Explain how such groups are formed under SGSY.
- SHGs are voluntary, homogeneous groups for mutual help, promoting savings and micro-credit.
- SGSY designated SHGs as the primary unit for poverty alleviation and self-employment.
- SHG formation under SGSY targeted BPL families, with strong emphasis on women's groups.
- Initial steps involved regular savings, group meetings, and opening a bank account.
Answer: Self-Help Groups (SHGs) are voluntary associations of people, typically from socio-economically similar backgrounds, who come together for mutual help and self-help. These groups are primarily formed to address the financial needs of their members, promote small savings, and facilitate access to micro-credit. Beyond financial intermediation, SHGs also serve as platforms for social empowerment, collective decision-making, and fostering solidarity among members. SHGs operate on the principles of...