Correct option is B
The correct answer is:(B) Urban Model Bank.
Explanation:
Microfinance institutions (MFIs) in India primarily organize groups to provide financial services to the economically weaker sections of society.
Among the listed options, Joint Liability Group (JLG), Self Help Group (SHG), and Grameen Model Bank are well-known models used by microfinance institutions.
Information Booster:
Joint Liability Group (JLG):
- A small group of individuals (usually 4-10) who take loans collectively and share repayment responsibility.
- Common in agriculture and allied sectors.
- Promoted by NABARD (National Bank for Agriculture and Rural Development).
Self Help Group (SHG):
- A community-based group (10-20 members) that pools savings and provides micro-loans to members.
- Supported by government and NGOs.
- Plays a key role in women empowerment and rural development.
Grameen Model Bank:
- A microfinance model developed by Muhammad Yunus in Bangladesh.
- Focuses on group-based lending to the poor without collateral.
- Implemented in India by various microfinance institutions.
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