The correct option is 1 and 3 only.
Explanation
Self-Help Groups (SHGs) are voluntary associations of the poor, primarily women, formed to address common socio-economic needs through mutual support and financial intermediation. They are central to India's strategy for financial inclusion and poverty alleviation, supported by frameworks like the Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM) and NABARD.
Statement-wise Analysis:
- Statement 1 is Correct: SHGs are recognized as the building blocks of the organization of the rural poor. They provide an institutional platform for the poor to organize, build social capital, and access financial and livelihood resources collectively.
- Statement 2 is Incorrect: One of the primary objectives of SHGs is to liberate the rural poor from the clutches of informal moneylenders who charge exorbitant interest rates. By pooling savings and facilitating access to formal banking channels (SHG-Bank Linkage), SHGs decrease financial dependence on moneylenders.
- Statement 3 is Correct: The fundamental operating principle of an SHG is "thrift and credit." Members are encouraged to save small amounts regularly to build a common corpus. This pooled capital is used to provide collateral-free loans to members for emergency or livelihood needs.
Key Takeaway:
Self-Help Groups foster financial discipline through regular savings and provide affordable credit, thereby reducing the reliance of the rural poor on exploitative informal debt sources.