UPSC Prelims Practice Questions — The Lakhpati Didi Initiative

Q1. With reference to the community institutions through which the Lakhpati Didi Initiative is delivered, consider the following statements: Which of the statements given above is/are correct?

  1. The initiative created its own separate tier of Lakhpati federations, which works alongside the existing SHG federations to deliver enterprise support.
  2. Under DAY-NRLM, Self-Help Groups federate into Village Organisations, which in turn federate into Cluster Level Federations.
  3. Community investment funds under DAY-NRLM are routed to Self-Help Groups through their village-level and cluster-level federations.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 1, 2 and 3
  • D. 2 and 3 only

Q2. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. A rise in the number of Lakhpati Didis does not, by itself, establish that women members have gained greater individual control over income.
  2. The Lakhpati benchmark is computed on the net income of the member's household and not on the earnings of the woman member herself.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q3. An independent assessment of SHG households under the Lakhpati Didi Initiative, covering 6,531 respondents across 17 States/UTs, reported that average monthly household income rose by about 61% and average monthly savings rose by about 61.7%. Which of the following inferences can validly be drawn from the above?

  1. On average, the sampled households did not spend away the entire increase in their income.
  2. The additional income was earned and controlled by the women members themselves.
  3. Every woman counted as a Lakhpati Didi across the country has experienced an income rise of about 61%.
  • A. 2 and 3 only
  • B. 1 and 2 only
  • C. 1 only
  • D. 1, 2 and 3

Q4. With reference to bank credit to Self-Help Groups under DAY-NRLM, as per RBI directions, consider the following statements: Which of the statements given above is/are correct?

  1. Each member of a Self-Help Group must open an individual savings account with the lending bank before the group can be credit-linked.
  2. Loans to Self-Help Groups up to a prescribed limit are to be sanctioned without collateral and without margin.
  3. Within that collateral-free limit, banks may still insist on a fixed deposit or mark a lien on the group's savings account as security.
  • A. 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1 and 2 only

Q5. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. Revolving Fund support given to Self-Help Groups under DAY-NRLM is meant to strengthen their financial management and help them build a credit history within the group.
  2. Revolving Fund support under DAY-NRLM is released only to those Self-Help Groups that have already repaid at least one bank loan.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q6. Suppose a severe drought wipes out farm wage work in a rural district for one season. In this context, consider the following statements: Which of the statements given above is/are correct?

  1. A demand-driven rural wage-employment guarantee would tend to expand in that district as more households seek work.
  2. Assessing the Lakhpati income benchmark over several agricultural seasons or business cycles, and not just one, helps prevent a single good or bad season from deciding a household's status.
  3. Households in which a woman has already attained Lakhpati Didi status are excluded from the rural wage-employment guarantee.
  • A. 1, 2 and 3
  • B. 1 and 2 only
  • C. 1 only
  • D. 2 and 3 only