MAINS 2013
GS2
10 marks
The legitimacy and accountability of Self Help Groups and their patrons, the micro-finance outfits, need systematic assessment and scrutiny for sustained success of the concept. Discuss.
WRITE IN
7 min
200 words
What the examiner wants
Discuss why SHGs and microfinance institutions need scrutiny for legitimacy and accountability.
DiscussExplain the different sides of the issue, use evidence, and finish with a balanced view.
Demand-wise check
- 1Legitimacy issues: elite capture, dormant groups, political use≈35 words
- 2MFI issues: high interest, multiple lending, coercive recovery (Andhra crisis 2010)≈35 words
- 3Regulation: Malegam Committee (2011), NBFC-MFI category, RBI rules≈35 words
- 4Strengthening: SHG federations, credit bureaus, social audit, DAY-NRLM≈35 words
Open in about 30 words and close in about 30.
Answer plan
Role of SHGs/MFIsAccountability gapsAP crisisRegulatory responseReforms
Where marks usually go
- Only praising SHGs
- Not separating SHG-bank linkage from for-profit MFIs
Draw this
- Flow: SHG → bank linkage vs SHG → MFI, with risk points marked
Value addition
- CommitteeMalegam Committee (RBI, 2011) proposed an NBFC-MFI category, margin caps and loan limits.RBI, 2011
- EventAndhra Pradesh Microfinance Ordinance (2010) followed reports of borrower suicides.Government of AP, 2010
Mapped topper copies
Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.
- Shakti Dubey · AIR 1 · Page 11 ↗Same syllabus reference
- Aditya Srivastava · AIR 1 · Page 5 ↗Same syllabus reference
- Shakti Dubey · AIR 1 · Page 38 ↗Same syllabus reference
- Shakti Dubey · AIR 1 · Page 15 ↗Same syllabus reference
Links open original public sources. MainsBuddy does not host these answer sheets.
Next: plan for one minute, write it in 7 minutes, then get it checked.