14. ( 'n•clll i.'ll t cl Is II pnpl't h1,h ud 1111!

flu· h1111k to p11y 2 '· lll"lilll" IIIOlll'Y·

n s1wdlk umounl 110111 lh,• IH't\1111', ni.Tonnl lo IIH·
Am. I'\ h111l') 1s ,Ill) th111g "hid1 h,1s rt1111•11t1 11 th:~·eptabtltt\
p,·r,011 In whow 1111ml' It hn, hl'l'll nuadt•. 1I\ ,1 llll\ltl-; tit' l''\l'h,111~1..'. d l\\l',ISUI~ ,llld ,l Slll[C llf
( l'rm•/F11lsi.•) \ ,lllll'.
\ns. l•als,., ,Is it is dll·qm· whil'l, 1s a p.tpl't 111st1u1:l111g
24. Why is mom·y culkd •n llll'dium of e\chant't''>.
lhl· b.1111,. to pa} a sp,-vtl1l' ,llllll\1t1t lnim till' pr1s1111\ ~

I \11 India 10171

m-r111111l to tl1t· JK'IMHI 111 whost· 1H1t\lL' ti hns hl'l'tl 111mk.
Or
15. lnfonnnl Si.'dor lTNlil indmks hums from hunks llo" dol'S mom') nl't us a nu•dium of e,change.
11nd coopl'rntin•s. ( n·m•/Fnlsl•)
I \II lndi:i 10 I 51
Aus. Falsl\ as i11li.1rn1al st·t·t111 l'n:d,t 1t1l'lu1ks loans l'nim
,\us. \\lone, ,1ets ,1s ,ll\ intermed1,1n
the e'\d1ange111
fr1c11ds. rdati, L's, 1111H1t·vkmlns. tradL·r:-. 1..'tt·
pnlL·1..·ss, thus ti 1s l'alled ,1 med mm of e'\t:hJ..:1ge.
16. Rich housd,olds lnq?,cly dcpl•nd on informnl
25. What objt.'cts "ere used ns money in lndis. bdore
sourn•s or credit. (l'ruc/Fnlsl')
the introduction of coins'?
Ans. False, as nch housdw\ds \argl'ly depend on formal
S\llll'L'l'S or t.:rcd1t.
\ns. Foodgrnins ,rnd cattk- "' ere used .is mone) before the
introdut.:twn of roms m India.
I 7. In form21l sector, hi~hrr mk of inti.'rcst is charged.
26. \\ hich metals ,Hre used for making coins in India
(True/False)
in later stages'?
\ns. False, ,Is higher rate of interest 1s i.:harged 1n informal
sector and not tn the forma I s1..·ctor. \us. Gold, sil,er and i.:opper coins \\ere us~ for making
coms in lakr stages m India.
18. What is demonetisation'?
27. Ghe the modern forms of mone).
Ans. On NoVL'mber 8, 2016, currcm:y notes of~ 500 and
t 1,000 \\ ere declared invalid. People were asked to \ns. The modem fom1s of mone) include cll.frency-paper
deposit these notes to the banks by a specific period notes and corns and pbstk mone).
and receive new cum:ncy notes. Thu, is kntmn as 28. The modern currency is accepted as a medium of
demonetisation. e'\change. Why'?
19. List ,arious ways through which digital transactions Ans. lt is aci.:epted .1s a medium of exch:mge bec.:iuse 1t is
are made. authorised b:, the Go, emment of lnd.ia.
c\.ns. Internet or mobile phones, cheques, ATM curds, credit 29. Why one cannot refuse a payment made in rupttS
curds, and POS swipe machines. in India'? (Delhi ?016)
20. What is the main objective to promote digital \ns. One cannot refuse a payment made ln mpees 1:1 India
transactions? because it is authl)TIS~ J:,) the lndi:m go" err-.mait
Ans. To reduce the requirement of cash for trnnscal!ons 30. Define a bank.
and also control corruption. .\ns. A bank ts a fin:mc,al :nstmm,)n "hose dem.llld JeP',~IS
21. What is meant b) double coincidence of wants'? are '" idel) accepted as ,none) for mi,ing payments
Ans. Double coincidence of wants means O\\-ner of good and has the po," er to creak" n11.."lne).
X, say shoes. to find someone else with good Y, say a 31. What are demand deposits'?
bag of\\ heat, and both bemg m need of each other ·s Ans. Deposits in the bank: .1~·coums. whi,:!1 c.1.~ be \\ithdra
good. on dem~md are callt"d t.knund dept.1s·!S
22. What is the meaning of barter -.ystem'? 31. What is a cheque·; jForei!?n .!II~
\Ot'lhi 20151 .\ns. .\ 1.'heque ,s ai:1 · '.'st uml.'nt mstrlh.'ting the b"1! \ ti:l
Ans. A system where goods are directl) ewhanged. ,, ithl1ut .l srl;'l.'tfi~· J.n\1,)._; ., • •: l.,m the pe~,,..,•~ .1 ...•...·1.llffit to

the use of mont."), is c.illed barter system. Pl.'''-l1"1 n \\ ~,_1,;e- P..Une the . .·hequc '..!S xe-n --~
 33, \\ hat determines the main source of income for
the banks?
Ans. It 1s the difference between what is charged from the
borrowers and what is paid to the depositors or savers.
"hich determines the income of the banks.
34. Define credit.
Or
What do you understand by the term 'credit'?
Ans. Credit or loan refers to an agreement in which the
lender supplies the borrower \\ ith money, goods or
services in return for the promise of future repayment.
35. For what purpose credit is mainly demanded in
rural areas?
Ans. Credit is mainl;, demanded for the purpose of crop
production in rural areas.
36. What is a debt-trap?
Ans. A debt-trap is a situation when it becomes impossible
to repay the loan and the borrower adds on a new
debt to pay the existing debt.
37. What is collateral?
Ans Collateral is an asset, such as land, vehicle, building,
li,estock and deposits with banks, that the borrower
owns and uses this as a guarantee to a lender until
the loan is repaid.
38. What are the main 'terms of credit'?
Ans. Interest rate, collateral, documentation requirements
and the mode of repayment together comprise 'terms
of credit' .
39. Which are the two major sources of formal loan
for rural households?
Ans. Banks and Cooperatives
40. Who supervises the functioning of formal sources
of loans?
Ans. Reserve Bank of India
41. Why are banks unwilling to lend loans to small
farmers?
Or
Why are most of the poor households deprived
from formal sector of loans?
Ans. Banks provide loans after collateral and docwnentation
securities, which generally the small farmers fail to
comply with. Therefore, banks are unwilling to give
loans to small farmers.
42. What kind of credit is crucial for a couotq·'s
deYClopment?
Ans. Cheap and affordable credit plays a crucial role in a
country's development.
43. Besides banks, what are the other sources of credit
from "hich the small farmers borrow?
Ans. Besides banks, the small farmers borrovv from
landlords, moneylenders, traders, relatives and friends
etc.
44. What are SHGs?
Ans. They are Self-Help Groups formed by the poor rural
women.
45. What does the stock of money consist of?
Ans. The stock of money consists of currency held by the
public and the demand deposits that they hold with
the banks.
Short Answer Type Questions [3 Marks]
46. What is money? Wb) is modern money currency
accepted as a medium of exchange?
Ans. Money is anything which has common acceptability,
as a means of exchange, a measure and a store of
value.
It has been accepted as a medium of exchange because:
(a) Goods and services are being bought and sold
with the use of money easily.
(b) Money solves the problem of double coincidence
of wants.
(c) Money is sometimes paid as advance with the
promise of delivery of goods later.
(d) It is a perfect store of value.
(e) It makes economic activities quite independent
from each other.
47. How can money be easily exchanged for goods and
services? Give an example to explain.
[Delhi 2013, 161
Or
Why are transactions made in money? Explain
with suitable examples.
Or
How is money used as a medium of exchange?
Explain with examples.
 . i·i·c<.:t the lending process or the banks a
,I . . . 'I It Wilj
'\1 1,. M om·y ·1s used as a fill'<
I111111 o 1· l'.X l ·I1.1, ll"L'
e · hec,111..,l' it
to use the imlJOr portwn of the deposited hav
Sl'IYl''- us a 111111111<>11 111l'd111111 lh1011gh which peoph..
. llloney
demand deposits. for
l'.111 L" ll ry 0111 huymg and sl'lli11f. l lsl' ol i11011ey rnakes
L'l.'1111011111· all1v1l1L'S i11dq1l'11dc11I of caeh other. Al th e 52. How do the ..
deposits with the banks beco
., Ille tb .
s,11 IIL' Illlll', it IL'IIIOVL'S Ihl' 111t:011 ven ienee ca 11sed by
source o f mcome. ~,r
lhl' ha1 ll'r sysll'lll. Ans. Banks
< ,
use the major portion of the dep os11s . .
For L'\:1111pk, a person wants lo sell s11gar and buy them to extend loans. As there is a huge de W11h
. . . .. rnand ~
wheat. I k has lo look for a person who wants sugar loans for various econom1c act1v1t1es, the banks rn or
and has wheat lo sell. In contrast, if' in an economy, use of the deposits with them to meet the ab ake
. h ove loa
whL'rL· 111oney is used, the person who wants to sell rctiuirements. In this way, t e banks mediate b n
etwe
sugar only has to look for a buye1 f'or his sugar. The the depositors and the borrowers. Banks ch en
arge a
llHlllL'Y which he will get can be used to purchase the higher interest rate on loans than what they
'f pay on
wheat or any other commodity 1n the market. Since, the deposits. The d1 fcrence between interest
rate
money is used in the exchange process it is called a charged from the borrow~rs and what is paid to th
medium or exchange. depositors is, thus, the mam source of income forth:
48. llow docs money solve the problem of "double banks.
coincidence of wants''! Explain with an example. 53. How is money transferred from one bank account
!Delhi 20141 to another bank account? Explain with an example.
Ans. Rcf'er to Answer. 2 (NCERT) Ans. For payment through cheque, the payer who has an
49. What arc demand deposits? How is money safe account in the bank, draws out a cheque for a specific
with the banks? Explain. !foreign 20131 amount. The cheque is a statement asking the bank
Ans. The deposits in the bank accounts which can be to pay a specific amount from the person's account
withdrawn on demand arc called demand deposits. to the person in whose name the cheque has been
issued.
People deposit their surplus cash at the beginning of
the month with the banks, where they have an account For example, Aman has to pay a specific amount of
in their names. Banks accept these deposits and also money to Shruti, say ~ 60,000. Aman will write a
pay an amount (as an interest) on these deposits. In cheque in the name of Shurti. It means Aman instructs
this way, people's money is safe with the banks and his bank to pay the money to Shurti. Shurti will deposit
also earns an amount in the form of interest. the cheque in her bank. After two or three days, the
50. Explain with examples, how people are involved
money will be transferred from Aman's account to
Shurti's account.
with the banks.
54. Given that a large number of people in our country
Ans. People arc involved with the banks in the following
ways: are poor, does it in any way affect their capacity
to borrow?
(a) Depositors· The people with excess money
Ans. Credit is always given after properly assessing the
deposit it in the banks for safety. In turn they
earn interest on the amount deposited. repayment capacity of the borrower. Since, poor
( h) Borrowers: At the same time, there arc people people do not have repayment capacity, they are
who need money for various activities. They usually unable to get a loan, especially from the fonnal
approach the banks for credit. The bank charges sector. They get some loan from the informal sector
rnlcrcst from the borrowers. but in th at case, they often fall in debt-trap because
51. What do you think would happen if all the depositors of very high rate of interest.
55. Expl ·
went to ask for their money at the same time? am the procedure involved in the issuiDg 0fs
Am,. 'f he ban_k~ keep only 15 per cent or the total deposits cheque.
as provisions to pay the depositors, but if all the Ans. For making pa
yments through a cheque
depositors go lo ask for
. their money at the same (a) the pay . an account-holder wt'th the
tune, then the banks wJI I not be able to cater to the er, w ho 1s
bank ' issu es a cheque from
, . cheque book for
withdrawal need:. or the depositors. This• may<
,
<11 so
his
a specific amount.
 lM the cheque inslructs the bank to pay a specific
amount from the depositor's account to the
person or institution, in\\ hose name it has been
issued.
(c) The money is, then, transferred from one bank
account to another bank account in a day or
two and the transaction is complete without any
payment of cash.
56. Explain the meaning of 'terms of credit'.
Ans. Interest rate, collateral, documentation requirement
and the mode of repayment together comprise what
is called the "terms of credit". These terms vary
substantially from one credit arrangement to another.
They may vary depending on the nature of the lender
and the borrower. These are required to make the
borrowers aware of the conditions to be followed for
taking the loan.
57. When does credit push the borrower into a debt-
trap? Explain with the help of an example.
Ans. In situation with high risks, credit might create
problems and pushes the borrower into a debt-trap.
He is much worse off than before. For example,
crop production involves high costs on inputs such
as fertilizers, pesticides, water etc. Farmers generally
take loans at the beginning of the season and repay
the loan after harvest. But the failure of the crop
makes loan repayment impossible. They have to
sell part of the land to repay the loan or a fresh loan
may be required to repay the previous loan, and the
borrower may find himself caught in a vicious circle
and recovery from such a situation is very painful.
58. Which government body supervises the functioning
of formal sources of loans in India? Explain its
functioning.
Ans. Reserve Bank of India supervises the functioning of
formal sources of loans in India. The RBI plays the
following rule:
(i) It issues currency notes on behalf of the central
government.
(ii) It issues guidelines for fixing rate of interest on
deposits and lending by banks.
(iii) It ensures that banks should minimum cash
balance out of the deposits they receive.
(iv) It ensures that the banks should give loans not
only to profit making businesses but also to poor
people and small traders.
( v) Periodically, the banks have to submit a report
to the RBI on ho\\ much they are lending. to
whom and at \\hat interest rate.
59. Why should credit at reasonable rates be available
for all?
Ans. Credit is an important aspect of economic activity.
Right from a small farmer to a big business tycoon,
everyone needs to borrow at some time to improve
productivity. In case of unreasonable rates. the
borrower always runs the risk of falling in the debt-
trap which is not good for the society and the economy
as a whole. Hence, reasonable rates are important for
all.
60. 'Credit has its own unique role for development.'
Justify the statement with arguments.
Ans. Credit has a unique role in the economic development
of the country. It is needed by all the three sectors of
the economy. In urban sector, big businessmen and
small manufacturers need loans either to expand their
enterprises, bring new technology or diversifying their
businesses.
In rural sector, the main demand for credit is for crop
production. Crop production involves cost of seeds,
fertilizers, pesticides, \Vater, electricity, repau of
equipments. Cheap credit would thus lead to increase
in production.
Even tertiary sector needs loans to buy the latest
equipments and technology. Thus, we can say that
credit has a unique role in the development of a
country.
61. Explain why the supervision of the functioning of
formal sources of loans is necessary?
Ans. The supervision of the functioning of formal sources
of loans is necessary to check
(a) whether the banks actually maintain the cash
balance.
(b) whether the banks give loans not just to profit-
making businesses and traders but also to small
cultivators, small-scale industries and small
borrowers.
( c) how much banks are lending, to whom and a
what interest rate.
62. Why do the poor households rely on informal credi
till today? Explain. [HOTS
Ans. Poor households, till today, rely mainly on informal
sources of credit, like moneylenders. because of
following reasons.

(a) Lack of banking facilities.
(b) Even if banks are established in some rural areas,
it is very difficult to get credit from them due
to a lot of paperwor k involved, which makes
taking credit from the bank very cumbersome.
(c) Informal creditors like moneylenders, happen to
know the borrowers personally, so they provide
them the loan without a collateral.
63. Prove with an argumen t that there is a great need
to expand formal sources of credit in rural India.
Ans. There is a great need to expand the formal sources
of credit in rural India because:
(a) There is no organisat ion to supervise credit
activities of the informal sector.
(b) It could lead to increasin g debt among the
borrowers.
(c) The rate of interest is very high in informal
sector.
64. Compare formal sector loans with informal sector
loans regarding rate of interest.
Or
Why are service condition s of formal sector loans
better than informal sector? Explain. fAjmer 2019)
Ans. In formal sector, the rate of interest is low. It is fixed
by the Reserve Bank of India, who supervises the
functioning of formal sources of loan.
In informal sector, the rate of interest is very high as
there is no organisation to supervise the functioning
of informal sources of loan.
65. "Most of the poor househol ds still depend on the
informal sector for Joans, both in rural and urban
areas of India." Support the statemen t with three
examples .
Or
"Poor househol ds still depend on informal sources
of credit." Support the statemen t with examples .
Ans. Poor households still depend on informal sources of
credit because:
(a) Bank loans require proper documentation and
collateral which is rarely available with poor
households.
(b) Informal sources of credit such as moneylenders
know the borrowers personally and are often
willing to give a loan without a collateral.
(c) Sometimes, if the borrowers are unable to return
the loan, they can get additional loans from
moneylenders.
66. How is the concept of Self-Help Groups (SHGs)
importan t for poor people? Give your viewpoin t.
[Foreign 2013, 16]
concept of Self-Help Groups (SHGs) is very
A OS. The
importan t for poor people. Self-Hel p Groups are
required because:
(a) they help the borrowers to overcome the problem
of lack of collateral.
(b) they help the rural poor ( especiall y women) to
become financially self-reliant.
(c) they provide a platform to hold regular meetings
and thus, discuss issues such as health, nutrition
and domestic violence.
67. Describe any three advantag es of the Self-Help
Groups (SHGs) for the poor. [Delhi 2011]
Ans. The three advantag es of the SHGs for the poor are
as follows.
(a) These groups help the rural poor, in particular
women, to get organised to handle the money
collected and sanction loans.
(b) These groups help the women to become
financially self-reliant.
(c) These groups create self-em ploymen t
opportun ities for the members and thus save
the poor from the clutches of the moneylenders.
68. How do SHGs help borrowe rs to overcom e the
problem of lack of coJJateral? Explain with an
example.
Ans. SHGs help borrower s to overcom e the problem of
lack of collateral in the following ways:
(a) It is the group that is responsi ble for the
repaymen t of loan.
(b) Any case of non-payment ofloan by any member
is followed up seriously by other members.
(c) The formal sector is willing to lend to the
members of SHGs because of their good track
record of managing the credit.
Long Answer Type Questions [5 Marks]
69. How do banks play an importa nt role in the
economy of India? Explain. fForeign 2015; HOTSI
Ans. Banks play an importan t role in developi ng the
economy of India by taking the following steps:
(a) Banks keep money of the people in safe custody
to be used by the depositors in future.
(b) They provide excellent saving and investment
options to the depositors and thus help the nation.
 74. Differentiate bet~een formal sector credit and informal sector credit.
Or
Mention any three points of distinction between formal sector loans and informal sector loans.

Ans. Formal Sector Credit Informal Sector Credit

(a) This credit is provided by banks and cooperative (a) This credit is provided by traders, moneylenders
'
societies to the borrowers. employers, relatives, friends, etc.
( b) The Reserve Bank of India (RB I) supervises the (b) There is no government or private organisation
functioning of formal sector loans. It periodically which supervises the informal sector loans.
checks the interest rate and other details of the
sources.
(c) Proper terms of credit like collateral, documentation, (c) Terms of credit are :flexible for the personal benefit
rate of interest and mode of payment are followed. of the lenders and pitiable condition of borrowers.
(d) They provide cheap and affordable credit with (d) They exploit the borrowers for their own benefits.
common terms of credit for all.
(e) They charge less interest rates as compared to (e) Their rate of interest is much higher than that of
informal sectors. formal sector.

75. '\Vhy is cheap and affordable credit important for
a country's development? Explain with reasons.
Or
Describe the importance of formal sources of credit
in the economic development. {Delhi 2019)
Ans. Cheap and affordable credit is crucial for a country's
development because:
(a) More lending would lead to higher incomes
and encourage people to invest in agriculture,
engage in business and set up small industries.
(b) Cheap credit will enable more investment. This
leads to acceleration of economic activity.
Ans. The two main reasons for formal credit not being
(c) Cheap credit would also allow weaker sections
of society to access formal sector of lending and
get rid of from informal moneylenders.
(d) Affordable credit would also end the cycle of
debt trap.
(e) Cheap and easy terms of credit would inspire
better investment in technology and thus increase
competition.
76. What are the various sources of credit in rural
areas? Which one of them is the most convenient
source of credit? Why is it most convenient? Give
two reasons.
Ans Various sources of credit in rural areas are:
(a) Agricultural traders
(b) Moneylenders
( c) Commercial banks
The most convenient source of credit is the
moneylender because of the following reasons.
(a) There is no need of documentation process
while taking loan from informal sources, such
as moneylenders.
(b) No collateral security is required. Collateral
is an asset that the borrower owns such as
land, building, livestock etc. and uses this as a
guarantee to the lender until the loan is repaid.
77. What are the two main reasons for formal credit
not being available to the rural poor? Why is there
a need to expand rural credit?
available to rural poor are:
(a) Absence of collateral and documentation is the
main reason which prevents rural poor from
getting loans from banks.
(b) The arrangements of informal sector loans
are flexible in terms of timeline, procedural
requirements, interest rates, etc. They are
adjustable according to the needs and
convenience of the borrower. This attracts the
borrowers.
There is a need to expand rural credit from the side
of formal sector because of the following reasons:
(a) Informal sectors exploit rural poor by pushing
them in debt-trap.
(b) Cheap and affordable credit for rural poor is

(d) Cooperative societies important for the country's overall development.

(c) With this credit, the rural poor can grow crops,
( e) Relatives and friends
do business or set up small-scale industries.
 78 . .. rtu· nt•diC 11cth·itic.•s of the informal st.•ctor should
tu.' disc.·ourngrd ... Support the statement with
11rj!llllll't1fs. Ilklhi .!O I6: IIOTSI
, 11 ,. It stak· that till' credit activities of the
1s l'\'lll'l't I\'
111 11m11,ll st·t·ll,r should be d1scourngcd. This can be
furtht·r substantiah.'d "ith the following points.
t,1) rtwrt· 1s no organisnt1on as such which supervises,
thl' cfl.'dtt acti\ ilks ol'thc lenders in the informal
st·1.:tor '\s a result, they charge exorbitant
rates of interest which vary from borrower to
borrower.
tb) Thc_y. thereby. indulge in exploitative practices
1m oh ing unfair means to get their money back
from the borrowers.
tc) As the cost of borrowing is very high in the
infonnal sector, a larger part of the income of
the borrower is used to repay the loan, i.e., the
borrower has less income left for himself.
(d} In certain cases, the amount to be repaid is
greater than the income of the borrower. This
in tum leads to increasing burden of debt which
culminates in a debt-trap.
(e) In this sector, those people who wish to start
an enterprise may not actually do so, because
of the high cost of borrowing which acts as a
deterrent.
79. How can the formal sector loans be made beneficial
for poor farmers and workers? Suggest any five
measures.
Ans. The formal sector loans can be made beneficial to
poor farmers and workers in following ways:
(a) The process of providing loans should be made
easier and accessible to them.
(b) Large number of banks and cooperatives should
be opened in the rural areas.
(c) Banks and cooperatives should expand their
facility of providing loans so as to decrease
dependence on informal sector.
(d) Special focus should be paid on poor and small
farmers along with small scale industries.
(e) Loan processing should be simple, faster and
timely.
80, Why is it necessary for the banks and cooperatives
to increase their lending facilities in rural areas?
Explain. !Foreign 2015, 141
Anii. It is ncccs!>ary for formal sources like banks and
:ooperatives to increase their lending in rural areas
ecause of the following reasons.
(a) Fonnal sources are far behind in meeting the
needs of the people in rural areas. Informal
sources like moneylenders, traders have taken
the rural areas under their influence.
(/J) Info1mal sources charge a high rate of interest
from the borrowers which makes it difficult for
them to repay the loan. They get trapped in the
debt-trap.
(c) Informal sources are not under any supervision
from any authorised institution. They behave
arbitrarily in terms of giving loans and setting
terms of credit.
(d) The rich have better access to formal sources
whereas poor are forced to depend on informal
sources. Equal distribution of credit facilities is,
therefore, required and is the need of the hour,
so that the poor can also avail cheap and timely
credit facilities.
(e) Formal sources of credit can help people in rural
areas to avail other benefits like cold storage
facilities, subsidised seeds and other agricultural
inputs.
81. Discuss the functioning of Self-Help Groups
(SHGs). (Delhi 2017
Ans. A Self-Help Group is an innovative way to organise
rural and urban poor, particularly women.
The following points sum up the functioning of Self
Help Groups.
(a) Typically, a SHG has 15-20 members belongin
to one neigbourhood. They meet and pool the·
savings regularly. Savings per member may va
as per the capacity of the member.
(b) The group advances loan to its members at
nominal interest rate without any collateral.
(c) Most of the important decisions regardin
savings and loan activities are taken by the grou
members themselves. The group decides whethe
loan is to be granted or not, purpose, amount
interest to be charged, repayment schedule etc.
( a) It is the group that is responsible for the repaymen
of the loan. In case of non-repayment by an
member, all the members seriously follow up
the repayment.
(e) The regular meetings of the group provides
a platform to discuss and act on a variety of
social issues such as health, nutrition, domestic
violence, etc.
82 . Dl.'sc..-ibl' tht' nd, ttnhtgl'S of Sl•lf-Hl'lp ( ;rouvs for (h) fhn .I\ .ul the lih'tl1t1l's ,lf 1~,.rns hnrn fnnnnl
the poor. S<Hlh'l's li~l' h.1nks .ti l,rn 1.lll' ,\f m1cn•s1

{, ') l lw, l'f(':lfl' M'lr ('lllpl<'' llh.'lll (lJ'Jlllrllmllll•~ b)

\ns. The .ld\ .u1t ..lfC'S of Sl·lf- Hdp l ~1 ,,ups fi.)r th~ pth)t' :tll':
d1scw,:,.i,,11 "1thi11 tlh.'it g1,,up.
(t1) Tht..'~ hdp tht" lh)Or tn l'l'l'Olll~ sdf-rdiant in {d) rill'' m.,kl' it Jh)~sihk ltlt' till' p,hH h) .,, nil ttmel)
terrn~ r,f s.l\ in~s .rnd ~l'lh."1,1t ing inl'OtlW :ts the fin.rncc "itlllHII .,m l.<,ll,1fl•1.ll.
d\:"\'.'lS1('llS n~1!.\nhne. s.n m~s nn: t.lkl'll h\ the
-- ' ~
(d nw
l'tllil'l' 1'h)l1Jl IS ll'SJh)lbihk· t'i.,, lhl' n.·,~,,
ment
grl.)Up n1t.."1nbcrs. ,)f h,.m .