Question 33 - Choice 2 - Social Science CBSE Class 10 Sample Paper for 2023 Boards - Solutions to CBSE Sample Paper - Social Science Class 10 - Social Science Class 10

Explain the role of Self-Help Groups (SHGs) in the rural society.

Answer:

Explanation:

• supervises the functioning of formal sources of loans
• monitors banks to maintain a minimum cash balance out of the deposit they receive.
• monitors banks in actually maintaining cash balance .
• Sees that banks give loans to everyone including small-scale industries , sm all borrowers etc.
• Banks submit information to RBI about their lending details .

Answer to be written in exam:

• The RBI supervises the functioning of formal sources of loans .
• RBI monitors the banks to maintain a minimum cash balance out of the deposit they receive.
• RBI is responsible for monitoring the banks in actually maintaining cash balance .
• RBI sees that the banks give loans not just to profit-making businesses and traders but also to small cultivators , small-scale industries , small borrowers etc.
• Banks have to submit information to the RBI on how much they are lending to whom at what interest rate , etc.