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JAIIB PPB Unit 41 — Self-Help Groups: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 2 of the November 2026 cycle (22 November 2026)

This page is a free slice of our JAIIB PPB question bank for Unit 41 — Self-Help Groups (Module B — Functions of Banks). The Mock Centre holds 26 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.

PPB · Module B26 MCQs in the Mock Centre5 free belowPaper on 22 November 2026

Key facts examiners test from this unit

  1. SHG = voluntary association of the poor; thrift → internal lending → bank linkage; reaches the unreached.
  2. Size: generally 10–20; ceiling 20 (beyond → compulsory registration); difficult areas/PwD groups — 5 members.
  3. Composition: BPL-dominated; APL max 20% (up to 30%, contiguous residents); subsidy ONLY for BPL; APL cannot be office bearers.

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
A Self-Help Group (SHG) is:
Why (b): A Self-Help Group is a VOLUNTARY ASSOCIATION OF THE POOR — informal, homogeneous, savings-first; the empowerment vehicle of microfinance.
Question 2 of 5
The SHG's core operating model is:
Why (b): Savings first, inter-loaning next, external credit last — the sequence that builds credit discipline.
Question 3 of 5
SHGs channel credit to:
Why (b): SHGs channel credit to the UNREACHED POOR — the households formal banking misses; the financial-inclusion frontier.
Question 4 of 5
Maintenance of which register is NOT compulsory for an SHG?
Why (c): The VISITORS BOOK is NOT compulsory for an SHG — minutes, savings-and-loan register and members' passbooks are the mandatory records.
Question 5 of 5
An SHG GENERALLY consists of:
Why (b): An SHG GENERALLY consists of 10 TO 20 PERSONS — the working range within the twenty-member ceiling.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
20 members5 membersCeiling vs difficult-area floor
20% APL30% APLNormal cap vs outer allowance
Practise all 26 questions on Unit 41. The free demo opens a slice of every subject with the same explanations; the PPB Online-only pass unlocks all 3,280 PPB 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.