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JAIIB IE&IFS Unit 24 — Micro Finance Institutions: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)

This page is a free slice of our JAIIB IE&IFS question bank for Unit 24 — Micro Finance Institutions (Module C — Indian Financial Architecture). The Mock Centre holds 78 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

IE&IFS · Module C78 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. Microfinance = poor/low-income services; four components (savings/credit/insurance/pensions); three evolution phases; ACD (RBI); LBS Dec 1969; RRBs 1975; IRDP 1980-81.
  2. SHG movement: MYRADA 1984-85 → NABARD SBLP 1992 (500-SHG pilot) → PSL mainstream 1996.
  3. Grameen: Yunus, Jobra 1976, bank 1983, Nobel 2006; 5-member groups, borrower-owned, 99%+ repayment.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
Microfinance mainly serves:
Why (b): Microfinance serves POOR AND LOW-INCOME HOUSEHOLDS — financial services for those the formal system excluded.
Question 2 of 5
Microfinance's four components:
Why (a): Microfinance's four components: MICRO CREDIT, MICRO SAVINGS, MICRO INSURANCE AND MICRO PENSIONS — the full service set, miniaturised.
Question 3 of 5
Microfinance's evolution divides into phases numbering:
Why (b): Microfinance's evolution divides into THREE phases: pre-independence, post-independence and post-liberalisation.
Question 4 of 5
The Grameen Bank Model was developed in:
Why (d): The Grameen Bank Model was developed in BANGLADESH — Muhammad Yunus's laboratory.
Question 5 of 5
The Fair Practices Code (FPC) is:
Why (b): The Fair Practices Code is the set of CRITERIA EVIDENCING COMPLIANCE — conduct standards the lender must publicly commit to and follow.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
SHG (10–20)JLG (4–10)Sizes and savings-first vs credit-first
1984-851992MYRADA pilot vs formal SBLP
Practise all 78 questions on Unit 24. The free demo opens a slice of every subject with the same explanations; the IE&IFS Online-only pass unlocks all 3,032 IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.