11th OCM 6th Chapter Exercise (Institutes Supporting Business) Maharashtra Board – Free Resource

11th OCM 6th Chapter Exercise

Chapter 6 – Institutes Supporting Business

Q.1 (A) Select the correct option and rewrite the sentences.

1) Small Industrial Development Bank of India (SIDBI) was established in ……….
a) 1989
b) 1990
c) 1991

2) SIDBI was established under the Small Industrial Development Bank of India Act, ……….
a) 1988
b) 1992
c) 1996

3) ……… is Principal Financial Institution for Promotion, the Micro, Small and Medium Enterprise (MSME) sector in India.
a) NABARD
b) KVIC
c) SIDBI

4) ……………….. came into existence on July 12, 1982.
a) NABARD
b) KVIC
c) SIDBI

5) A Committee to Review the Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD) was constituted under the Chairmanship of ……………..
a) Kothari
b) Shivaraman
c) Rangrajan

6) All India Khadi and Village Industries Board was set up in the year …………….
a) 1953
b) 1949
c) 1948

7) In April ……… KVIC was established.
a) 1955
b) 1953
c) 1957

Q.1 (B) Match the following.

Group A	Group B
A) SIDBI	1) 1990
B) NABARD	(2) 1982
C) World Bank	(3) 1944
D) Grameen Bank	(4) 1983
E) KVIC	(5) 1957

Q.1 (C) Give one word/phrase/term for the following statements.

1) Life blood of business.
Answer: Finance

2) Principal Financial Institution for Promotion of the Micro, Small and Medium Enterprise
(MSME) sector in India.
Answer: SIDBI

3) Advisor and Mentor for MSMEs.
Answer: SIDBI

4) Wholly owned subsidiary of IDBI was set up in July 1999, is providing venture capital.
Answer: SVCL

5) Digital initiative by SIDBI launched on March 17th, 2016.
Answer: Startup Mitra

6) The apex institution for agricultural finance.
Answer: NABARD

7) The Bangladeshi economist, known as the Father of Microfinance.
Answer: Dr. Muhammad Yunus

8) An international organization dedicated to providing finance, advice and research to developing nations.
Answer: World Bank

Solution of other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.1 (D) State True or False.

1) Small Industrial Development Bank was established on 2nd April, 1990. (True)

2) SIDBI has its head office at Mumbai. (False)

3) SIDBI is not working towards suitainble development of MSME’s in India. (False)

4) SIDBI, Startup Mitra scheme is launched on March 17th, 2016. (True)

5) NABARD came into existence on July 12, 1982. (True)

6) The NABARD has been recognised as the apex institution for financing large scale Industries. (False)

7) KVIC is actively working for planning, promotion and production of Khadi as well as in setting up of village and rural Industries on India. (True)

8) Dr. Mohammad Yanus is known as the ‘father of Rural Banking.’ (True)

9) Self Help Group is a large group of homogeneous individuals. (True)

Q.1 (E) Complete the sentences.

1) The lifeblood of a business is Finance.

2) Micro, Small and Medium Enterprises (MSME’s) are focused domains for SIDBI.

3) SIDBI takes structural intiatives to reslove the financial and non-financial hurdles of MSME’s.

4) SIDBI is established to provide short-term and long-term finance to MSME’s.

5) ‘SIDBI startup Mitra’ launched on 17th March 2016.

6) To improve accessibility of credit and handling services to MSMEs, SIDBI has launched the Udyami Mitra.

7) NABARD come into existence on July 12, 1982.

8) Khadi and Village Industries commission was set up in 1957.

9) A statutory body of Khadi and Village Industries Commission (KVIC) was created with a special Act of Parliament.

10) The Grameen Bank in Bangladesh was set up in October 1983.

11) The father of Micro finance is Dr. Muhammad Yunus.

12) The World Bank came into existence on 1944.

13) The headquarter of World Bank is in Washington D. C.

14) Dr. Muhammad Yunus Jointly won the Noble Prize in 2006.

Q.1 (F) Complete the following table

Group A	Group B
1) SIDBI	2nd April, 1980
2) July 12, 1982	NABARD
3) KVIC	1957
4) 1944	World Bank
5) Grameen Bank	Oct, 1983

Q.1 (G) Answer in one sentence.

1) What is SIDBI?
Answer: SIDBI takes structural initiative to resolve financial and non-financial hurdles of MSMEs. It helps to make MSMEs strong, vibrant and globally competitive

2) What do you mean by NABARD?
Answer: The NABARD has been recognized as an apex institution for agricultural finance. The
NABARD was established with the objective of providing and regulating credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts and allied economic activities.

3) What is ment by Grameen Bank?
Answer: Grameen Bank in Bangladesh in October 1983 with the vision to eradicate poverty. Grameen Bank was born to give small loans to poor which can make a big difference in their life.

4) What is SHG?
Answer: A Self Help Group (SHG) is a small group of homogeneous individuals who come together with the objective of creating common fund through savings and meet members’ emergency needs by providing collateral free loan.

5) What do you mean by world Bank?
Answer: The World Bank is an international organization dedicated to provide finance, advice and research to developing nations.

6) What is MSME’s?
Answer: MSME plays an important role in the Indian Economy as it provides major employment in the economy.

7) What is Udyami Mitra?
Answer: SIDBI has launched the ‘Udyami Mitra’ Portal to improve accessibility of credit and handholding services to MSMEs.

Q.1(H) Correct the underlined word and rewrite the following sentences.

1) SIDBI is established to provide only long-term finance to the MSME’s.
Answer: Short term and long term

2) The NABARD has been recognised as the apex institution for industrial finance.
Answer: agricultural

3) Khadi was symbol and the spirit of self reliance in post independence India.
Answer: pre independence

4) Self-help groups are based on the fundamental principle of to earn profit.
Answer: Helping each other

5) World Bank provides high interest loan.
Answer: low interest

Q.2 Explain the following terms/concepts.

1) Udyami Mitra
Answer:
a) SIDBI has launched the ‘Udyami Mitra’ Portal to improve the accessibility of credit and
handholding services to MSMEs.
b) They can select and apply for preferred banks through this portal.
c) Under the portal, entrepreneurs can apply for loans without physically visiting any bank
branches.
d) It also has a facility for uploading all necessary documents.
e) Through the portal the MSMEs can also seek handholding support for getting finance.

2) KVIC
Answer:
a) In April 1957, KVIC was established and took over the work from All India Khadi and Village Industries Board.
b) KVIC is actively working on planning, promotion, and production of Khadi as well as in
setting up of village and rural industries in India
c) KVIC has its head office in Mumbai.
d) It plays the role of co-ordinator with other agencies engaged in rural development.

3) World Bank
Answer:
a) The World Bank is an international organization dedicated to provide finance, advice and
research to developing nations.
b) The World Bank was created at the 1944 Bretton Woods Conference. The head quarter of the World Bank is in Washington, D.C.
c) Conventionally it is not a bank. Instead, it comprises two institutions namely the International Bank for Reconstruction and Development (IBRD) and the International
Development Association (IDA).
d) As on date 189 member countries share ownership of the bank.

4) Self-Help-Group
Answer:
a) A SHG is a voluntary association.
b) Every member of the group makes a small saving at regular intervals.
c) After the group collects sufficient funds it can start lending it to the members as per their needs at a reasonable rate of interest.
d) In India, many SHGs are linked to banking institutions for the delivery of micro-credit. Registration of SHG is not compulsory.

5) Collateral free loan
Answer:
a) SHGs provide small loans to poor individuals for undertaking self-employment projects.
b) It provides employment for themselves and their families.
c) Loans are given on the principle of mutual trust and either minimum or no documentation is required to get a loan. The rate of interest differs from group to group.
d) Generally rate of interest charged by the SHGs are little higher than the interest charged by banks. It saves poor individuals from the clutches of local moneylenders.

Solution of other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.3 Study the following case/situation and express your opinion.

1) Anand completed his MBA and wants to start a Small Scale Industry. He is good at using technology. He has very good business idea in mind and looking for a lender or investor.

i) Who is promoter or businessman in this case?
ii) What is full form of SSI?
iii) Suggest any one digital way to find a lender or investor for this initiative.

Solution:
i) Anand is a promoter of the business.
ii) Full form of SSI is Small Scale Industries.
iii) SIDBI Startup Mitra and Udyami Mitra.

Q.4 Answer in brief.

1) State any four features of NABARD.

Answer:
For answer refer to Q.7 (2)

2) State any four objectives of KVIC

Answer:
For answer refer to Q.6 (4)

3) Write any four features of World Bank.

Answer:
For answer refer to Q.7 (5)

4) Describe any two features of self-help Group.

Answer:
For answer refer to Q.7 (4)

5) Describe any two features of SIDBI.

Answer:
For answer refer to Q.7 (1)

Solution of other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.6 Justify the following statements.

1) SIDBI acts as an institute for promotion of MSMEs.

Answer:
a) SIDBI is established to provide short term and long term finance to the MSMEs.
b) It is principal financial institution for micro,small and medium sector units.
c) It also coordinate the functions of institutions engaged in financing MSMEs. It provides refinance to Banking and Non-Banking Financial Companies (NBFC) to increase supply of credit to MSMEs.
d) Besides the refinance operations SIDBI also lends directly to MSMEs. SIDBI caters to the specific needs of Indian MSMEs that are not fulfilled through traditional sources of finance.
e) Thus, SIDBI acts as an institute for promotion of MSMEs.

2) SIDBI provides different types of financial and non-financial services through its subsidiaries.

Answer:
SIDBI provides different types of financial and non-financial services through its associates
and subsidiaries. These associates and subsidiaries are as follows:

i) SIDBI Venture Capital Ltd. (SVCL) is providing venture capital to emerging sectors, such as, life sciences, biotechnology, engineering and information technology.
ii) Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a trust
to implement the Credit Guarantee Scheme (CGS) through which credit facilities are
extended without third party guarantee on collateral security.
iii) SME Rating Agency of India Ltd. (SMERA) was set up by SIDBI, Dun & Bradstreet
Information Services India Private Limited (D&B) and several public, private and foreign
sector banks as an MSME dedicated third-party rating agency to provide comprehensive,
transparent and reliable ratings and risk profiling.

iv) India SME Technology Services Limited (ISTSL) is a platform where MSMEs can tap
opportunities at the global level for acquisition of new and emerging/green technologies
or establish business collaboration.
v) India SME Asset Reconstruction Company Ltd (ISARC) is an Asset Reconstruction
Company (ARC) to acquire non-performing assets (NPAs) and to resolve them through
its innovative mechanisms with a special focus on the NPAs of MSME sector.
vi) Micro Units Development & Refinance Agency (MUDRA) is for ‘funding the unfunded’
micro enterprises in the country.
vii) Thus, SIDBI provides different types of financial and non-financial services through its subsidiaries.

3) The NABARD has been recognized as the apex institution for agricultural finance.

Answer:
a) NABARD acts as an apex bank for meeting the credit needs of all type of financial institutes
working in the field of agricultural and rural development.
b) It works to frame policies and guidelines for rural financial institutions in India. It also provide credit facilities to institutes working in agricultural finance.
c) It also monitors the flow of rural credit in India.
d) The bank implements the policy of the Central Government and the RBI with regard to agricultural credit.
e) Thus, NABARD has been recognized as the apex institution for agricultural finance.

4) KVIC plays an important role in development of entrepreneurship.

Answer:
a) Entrepreneurship Development is one of the major functions of KVIC.
b) KVIC helps to provide additional livelihood avenues to the village communities.
c) KVIC generate self-employment opportunities through establishment of micro enterprises by organizing traditional artisans and unemployed youth. It increases their earning capacity as well as prevents migration.
d) The KVIC actively participates in many international trade exhibitions for popularising its products in international markets.
e) Thus, KVIC plays an important role in development of entrepreneurship.

5) Mutual Trust is the soul of SHG.

Answer:
a) Most of the Indian villages are facing challenges such as poverty, illiteracy, lack of skills, health care etc.
b) It is difficult to tackle these problems individually. There is a need of group efforts
to solve these problems.
c) The basic philosophy of forming SHGs is to overcome individual shortcomings and weaknesses with collective efforts.
d) Through mutual trust thousands of the poor and the marginalized individuals are building their lives, their families and their society.
e) Thus, Mutual Trust is the soul of SHG.

6) SHGs plays an important role in empowerment of women.

Answer:
a) Consistent efforts by government and non-government machinery were not achieving much in the economic development of women in India.
b) SHG is an emerging tool for socio-economic development of women all over the world. SHGs are working effectively in promoting women’s entrepreneurship.
c) Government provides different financial and non-financial assistance to promote Self Help Groups for women’s empowerment.
d) SHGs empower women by providing them with knowledge, finance and opportunity.
e) Thus, SHGs plays an important role in empowerment of women.

7) World Bank plays vital role in social development.

Answer:
a) The World Bank work with governments, communities, civil societies, the private sector and the marginalized for the cause of social development.
b) Social Development promotes economic growth and leads to a higher quality of life.
c) The World Bank’s work on Social Development brings voices of the poor and vulnerable into development processes.
d) World Bank is also undertaking timely social risk analysis, including poverty and social impact analyses.
e) Thus, World Bank plays vital role in social development.

Solution of other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.6 Attempt the following.

1) State the different forms of finances provided by SIDBI.

Answer:
SIDBI offers the following facilities to its customers:

1) Direct Finance: SIDBI offers direct financing to the MSMEs through financing Working
Capital, Term Loan, Foreign Currency Loan, Equity Support, Energy Saving Scheme, etc.

2) Indirect Finance: SIDBI offers direct assistance by providing Refinance to Banks, State
Level Financial Institutions, etc. with an extensive branch network across the country.

3) Micro Finance: SIDBI offers microfinance to small businessmen and entrepreneurs for
establishing their business.

2) State the role of SIDBI in sustainable development.

Answer:
a) SIDBI is working towards the sustainable development of MSMEs in India.
b) It helps MSMEs in the creation of economic wealth while preventing the ecological wealth of the country.
c) It promotes a culture of energy-efficient and sustainable finance.
d) It takes initiative to enhance awareness of the benefits of climate control amongst MSMEs.
e) SIDBI’s focused lending schemes promote investment in clean production and energy-efficient technologies.
f) It helps to reduce the emission of greenhouse gases to contribute towards the reduction in pollution.

3) Explain role of NABARD in financing rural industries.

Answer:
a) NBARD plays an important role in providing refinance to small scale industries and other village and cottage industries.
b) It provides loans to commercial and co-operative banks to promote rural employment.
c) It organizes skill and entrepreneurship development programmes to promote an entrepreneurial culture among the rural youth and encourage them to start enterprises in rural areas.

4) Explain objectives of KVIC.

Answer:
The broad objectives of establishing the KVIC are
a) The social objective of providing employment.
b) The economic objective of producing saleable articles.
c) The wider objective of creating self-reliance amongst the poor and building up of a strong
rural community spirit.
These objectives can be achieved through the effective implementation of various schemes and programs of KVIC.

5) Explain the role of KVIC in employment generation.

Answer:
a) Due to massive population growth, agricultural sector is losing its ability to generate additional employment in rural areas.
b) It is necessary to create employment opportunities for the fast-increasing workforce in rural areas. Khadi and Village Industries are labor-intensive in nature.
c) The KVIC is established with the broader objective to promote non-farm employment
opportunities in rural areas.
d) It also concentrates on the betterment of rural artisans and socio-economic weaker section of society.
e) The KVIC has been generating large-scale employment in rural areas with low per capita investment.

6) Explain in detail democratic setup in SHGs.

Answer:
a) SHG is a group of members, for the members and by the members.
b) It is the group that reflects the people’s real participation in the process of development. Every member of the group actively participates in the functioning of SHGs.
c) Members are responsible for their own future by organizing themselves into SHGs. They elect or select leaders for the proper functioning of the group.
d) Leader is responsible for holding regular meetings and maintaining records and
accounts of the group.
e) These groups run on the principle of collective leadership and mutual discussions.

7) Explain organizational structure of World Bank .

Answer:
a) The organization of the bank consists of the Board of Governors, the Board of Executive
Directors and the Advisory Committee, the Loan Committee and the president and other staff
members.
b) All the powers of the bank are vested in the Board of Governors which is the supreme policy-making body of the bank.
c) The board consists of one Governor and one Alternative Governor appointed for five years by each member country.
d) The Board of Executive Directors consists of 21 members, 6 of them are appointed by the six largest shareholders, namely USA, UK, Germany, France, Japan and India.
e) The rest of the 15 members are elected by the remaining countries.

Q.7 Answer the following.

1) Write important features of SIDBI.

Answer:
Following are some of the important features of SIDBI :

1) Financial Institute for Promotion of MSMEs

SIDBI is established to provide short term and long term finance to the MSMEs. It is principal financial institution for micro, small and medium sector units. It also coordinate the functions of institutions engaged in financing MSMEs. It provides refinance to Banking and Non-Banking Financial Companies (NBFC) to increase supply of credit to MSMEs.

2) Sustainable Development

SIDBI is working towards sustainable development of MSMEs in India. It helps MSMEs in creation of economic wealth while preventing ecological wealth of the country. It promotes culture of energy efficient and sustainable finance. It takes initiative to enhance awareness of benefits of climate control amongst MSMEs.

3) Advisory Function

SIDBI also works as an advisor and mentor for MSMEs. It helps MSMEs in expanding marketing channels for the products both in the domestic as well as international markets. It also initiates steps for modernization and technological upgradation of current units.

4) Services to MSMEs

SIDBI provides different types of financial and non-financial services through its associates and subsidiaries. These associates and subsidiaries are as follows :

i) SIDBI Venture Capital Ltd. (SVCL)
ii) Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
iii) SME Rating Agency of India Ltd. (SMERA)
iv) India SME Technology Services Limited (ISTSL)
v) India SME Asset Reconstruction Company Ltd (ISARC)
vi) Micro Units Development & Refinance Agency (MUDRA)

5) Achievements of National Goals

SIDBI’s initiatives help in poverty alleviation and employment generation through financing MSMEs. It promotes entrepreneurship among women and economically weaker sections of society. It provides finance to industries in semiurban areas to create more employment opportunities which reduces migration of population to urban areas.

6) Different forms of Finance
SIDBI offers the following facilities to its customers:
a) Direct Finance
b) Indirect Finance
c) Micro Finance

7) Digital Initiatives

a) SIDBI Startup Mitra: It is digital initiative by SIDBI launched on March 17th, 2016. It brings together all stakeholders, start-up entrepreneurs, incubators, investors, industry bodies, mentors and advisors, and banks at one platform. It helps in financing and development of new entrepreneurs.
b) Udyami Mitra: SIDBI has launched the ‘Udyami Mitra’ Portal to improve accessibility of credit and handholding services to MSMEs. They can select and apply for preferred banks through this portal.

8) Nodal/Implementing Agency

SIDBI has been assigned the role of nodal agency by the Government of India. It helps in implementing various subsidy schemes for MSMEs. These schemes help in the upgradation, modernization, and expansion of business.

2) Write important features of NABARD.

Answer:
Following are some of the important features of NABARD :

1) Apex Bank

NABARD acts as an apex bank for meeting the credit needs of all type of financial institutes working in the field of agricultural and rural development. It works to frame policies and guidelines for rural financial institutions in India. It also provide credit facilities to institutes working in agricultural finance. It also monitors the flow of rural credit in India.

2) Refinancing Facilities

It provides refinancing facilities to State Co-operative Banks (SCBs), Land Development Bank (LDBs), Regional Rural Banks (RRBs) and other approved financial institutions for financing rural economic activities. It also provides short-term, medium-term and long-term credit to these institutes.

3) Assistance to Financial Institutes

It plays an important role in preparing and developing action plans for Cooperative Banks and Regional Rural Banks. It also monitors implementation of development action plans of these banks. It provides financial assistance to cooperative banks for building improved Management Information System (MIS), computerization of operations and development of human resources.

4) Provides Credit for Rural Development

It takes initiatives in the development and promotion of different activities in rural area by providing funds to State governments. It also provides refinancing for upliftment of weaker section of society. It also works on improvement of small and minor irrigation by way of promoting agricultural activities.

5) Supervision of Financial Institutes Engaged in Agricultural Finance

It undertakes inspection of Regional Rural Banks (RRBs) and Cooperative Banks as per the guidelines of Banking Regulation Act, 1949. It can also undertake inspection of State Cooperative Agriculture and Rural Development Banks (SCARDBs) and apex non-credit cooperative societies on a voluntary basis.

6) Provides Recommendations to Reserve Bank of India

It Provides recommendations to Reserve Bank of India on issue of licenses to Cooperative Banks, opening of new branches by State Cooperative Banks and Regional Rural Banks (RRBs).

7) Financing Rural Industries

It plays an important role in providing refinance to small scale industries and other village and cottage industries. It provides loans to commercial and co-operative banks to promote rural employment. It organizes skill and entrepreneurship development programmes to promote an entrepreneurial culture among the rural youth and encourage them to start enterprises in the rural areas.

8) Role in National Development

It plays an important role in the improvement of storage facilities for agricultural commodities by promoting development of warehousing facilities. It has also promoted the export of agricultural commodities. It is playing a key role in sustainable development of the country through Green, Blue and White revolution

3) Write important features of KVIC.

Answer:
Following are some of the important features:

1) Rural Development

India is an agricultural country and most of its population is residing in rural India. KVIC is the premier organization that plays an active role in the development of rural India. The Khadi and Village Industries play a very important role in the development of Indian economy, particularly in the development of rural areas.

2) Employment Generation

Due to massive population growth, agricultural sector is losing its ability to generate additional employment in rural areas. It is necessary to create employment opportunities for the fast increasing workforce in rural areas. Khadi and Village Industries are labour intensive in nature. The KVIC is established with the broader objective to promote non-farm employment opportunities in rural areas.

3) Entrepreneurship Development

Entrepreneurship Development is one of the major functions of KVIC. KVIC generate self-employment opportunities through establishment of micro enterprises by organizing traditional artisans and unemployed youth. It increases their earning capacity as well as prevents migration.

4) Financial Assistance

KVIC formulated many schemes for financial assistance for rural industrialization and employment generation. It finances the projects for rural industrialization and also provides for margin money by way of subsidy. These schemes are implemented by KVIC, State Units of KVIC and District Industries Centres (DICs) with involvement of Banks.

5) Research and Development

To face the challenge of globalization, KVIC has introduced a number of new products range like Khadi denim jeans to cater the need of the market. The KVIC undertakes training of sales staff for effective marketing of the products. KVIC is taking several steps to set standards of quality to ensure the genuineness of the khadi products. It also promotes the use of non-conventional energy and electric power for sustainable development.

6) Marketing and Promotion

In order to attract younger generation, the KVIC is holding exhibitions, seminars, lectures in universities and colleges to disseminate knowledge of KVIC products. KVIC has also launched a massive marketing development plan to generate interest, awareness, and attraction amongst the masses. Efforts are taken to improve the quality of products, packaging and marketing.

7) Other Functions

The KVIC is charged with the planning, promotion, organization, and implementation of programs for the development of Khadi and other village industries in the rural areas. It organizes training programme for artisans engaged in Khadi and village industries.

4) Write important features of SHGs.

Answer:
Following are some of the important features of Self Help Groups :

1) Formation

Self Help Group is a small group of homogeneous individuals. It is generally formed by NGOs, or teams of dedicated functionaries of the government. It is an informal group and registration under any Act is not mandatory. It is recognized by the government and does not require any formal registration.

2) Membership

As per National Urban Livelihood Mission (NULM) at least 5 members are required. It is difficult to manage a bigger groups and members cannot actively participate. From one family, only one person can become a member so that more families can participate. Mixed groups are generally not preferred.

3) Democratic Setup

SHG is a group of members, for the members, and by the members. It is the group which reflects the people’s real participation in the process of development. They elect or select leader for the proper functioning of the group. These groups run on the principle of collective leadership and mutual discussions.

4) Habit of Saving

The SHG encourages small saving habits at regular intervals among its members. Savings of all group members help to generate a common fund to be used to lend to members in times of need. The self-help group inculcates thrift and savings habits among the members of each group.

5) Mutual Trust

Most of Indian villages are facing challenges such as poverty, illiteracy, lack of skills, health care, etc. It is difficult to tackle these problems individually. There is a need for group efforts to solve these problems. The government also gives due recognition to SHGs for the effective implementation of development schemes at the grass root level.

6) Promotes Entrepreneurship

The poor and marginal individuals in rural areas face a scarcity of capital and managerial skills. SHGs provide them capital at low-interest rate which gives them an opportunity to start micro enterprise. These micro-enterprises use untapped manpower in the area which generates employment opportunities in the rural area. Timely financial support and managerial skills help to promote first-generation micro-entrepreneurs in rural areas.

7) Women’s Empowerment

Empowerment of women is recognized as the need of the hour. SHG is an emerging tool for the socio-economic development of women all over the world. SHGs are working effectively in promoting women’s entrepreneurship. The government provides different financial and non-financial assistance to promote Self Help Groups for women’s empowerment.

8) Collateral Free Loan

The lack of loans from formal institutions leaves the poor with no other option but to borrow money from local moneylenders at huge interest rates. SHGs provide small loans to poor individuals for undertaking self-employment projects. It provides employment for themselves and their families.

5) Write important features of World Bank.

Answer:
Following are some of the important features of World Bank:

1) Organization and Structure:

The organization of the bank consists of the Board of Governors, the Board of Executive Directors and the Advisory Committee, the Loan Committee and the president and other staff members. All the powers of the bank are vested in the Board of Governors which is the supreme policy making body of the bank. The board consists of one Governor and one Alternative Governor appointed for five years by each member country. The Board of Executive Directors consists of 21 members, 6 of them are appointed by the six largest shareholders, namely USA, UK, Germany, France, Japan, and India. The rest of the 15 members are elected by the remaining countries.

2) Goals

The World Bank Group has set two goals to be achieved by 2030.
a) End extreme poverty by decreasing the percentage of people living on less than $1.90 a day to no more than 3%.
b) Promote shared prosperity by fostering the income growth of the bottom 40% for every country

3) Financial Products and Services

World Bank provides low-interest loans, zero to low-interest credits, and grants to developing countries. It supports in areas such as education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource management.

4) Innovative Knowledge Sharing

World Bank offers support to developing countries through policy advice, research and analysis, and technical assistance. Analytical works of the World Bank often help developing countries. It also helps in the capacity development of developing countries. World Bank also sponsors, hosts or participates in many conferences and forums on issues of development.

5) Innovation and Entrepreneurship

In a competitive economy, innovation and entrepreneurship play an important role in the growth of the business. It helps in higher productivity which leads to increased economic growth. It helps in the creation of employment to eradicate poverty. Young and growth oriented companies contribute to employment growth. They help in enhancing competitiveness and productivity by introducing new products, developing novel business models, and opening new markets.

6) Social Development

Social Development focuses on the need to “put people first” in development processes. Social Development promotes economic growth and leads to a higher quality of life. The World Bank’s work on Social Development brings voices of the poor and vulnerable into development processes.

Solution of other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

11th OCM Textbook Solutions

Chapter Name	Solution Link
1) Introduction of Commerce and Business	Click Here
2) Trade	Click Here
3) Small Scale Industry and Business	Click Here
4) Forms of Business Organisation – I	Click Here
5) Forms of Business Organisation – II	Click Here
6) Institutes Supporting Business	Click Here
7) Business Environment	Click Here
8) Introduction to Management	Click Here

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12th Commerce Paper Pattern and Chapter Wise Marks Distribution	Click Here
Sample Paper of 12th Commerce for Practice	Click Here
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Old Question Papers of 12th Commerce with solution (All Subjects)	Click Here