Correct Option
The correct option is The group members..
Explanation
Self-Help Groups (SHGs) are voluntary associations of the poor, usually consisting of 10 to 20 local women, who pool their savings to facilitate mutual support. The fundamental principle of an SHG is democratic self-governance and financial autonomy.
Detailed Analysis
The functioning of an SHG relies on the active participation of its members. The decision-making authority is distributed as follows:
- Group Members (Correct): The members collectively take all major decisions regarding savings and loan activities. This includes determining the interest rate to be charged, the purpose of the loan, the amount to be sanctioned, and the repayment schedule. The group is also responsible for ensuring repayment and managing non-performance.
- Bank Manager (Incorrect): While banks provide credit under the SHG-Bank Linkage Programme, they do not decide how the group manages its internal savings or allocates loans among members.
- Local Government Representative (Incorrect): Government bodies may facilitate the formation of SHGs (e.g., under the National Rural Livelihood Mission), but they do not intervene in day-to-day financial decisions.
- NGOs (Incorrect): Non-Governmental Organizations often act as promoting institutions or facilitators, providing training and capacity building, but the decision-making power remains with the SHG members.
Key Takeaway
SHGs are member-driven institutions where the group members themselves possess the autonomy to decide on savings, lending terms, and internal management, fostering financial discipline and self-reliance.