In the context of Self Help Groups (SHGs) in rural development, who takes the decisions regarding the savings and loan activities of the group?

Introduction / Context:
This question covers basic knowledge about Self Help Groups, which are widely used in India as an instrument of microfinance and women centred development. A key principle of Self Help Groups is that they are member driven institutions where decisions regarding savings and credit are taken by the group itself.

Given Data / Assumptions:

• The subject is savings and loan activities within a Self Help Group.
• Possible decision makers listed include a private bank, the Reserve Bank of India, members of the group, and Non Governmental Organisations.
• We assume a typical Self Help Group promoted under schemes such as the National Rural Livelihoods Mission.

Concept / Approach:
A Self Help Group is built on self management and collective decision making. Members pool their savings, decide internally how to lend funds to members, set interest rates, and frame repayment norms. Banks and Non Governmental Organisations can support or facilitate, but they do not take day to day loan decisions for the group.

Step-by-Step Solution:
Step 1: Recall the definition of a Self Help Group. It is a voluntary group, usually of 10 to 20 people, commonly women, who save regularly and lend to each other.Step 2: Identify who has the authority to decide on loans, beneficiaries, and repayment schedules. By design, these decisions are taken in group meetings through discussion and consensus or voting.Step 3: Commercial banks provide larger loans to the group as a whole, but they do not select individual borrowers from among the members.Step 4: The Reserve Bank of India issues broad guidelines for the banking system, but it does not manage individual group level decisions.Step 5: Non Governmental Organisations may promote and train groups, yet they are supposed to gradually withdraw and leave decisions to the members.

Verification / Alternative check:
Standard training material on Self Help Groups stresses that empowerment comes from members taking responsibility for record keeping, financial decisions, and conflict resolution. This confirms that decision making power regarding savings and loans rests within the group itself.

Why Other Options Are Wrong:
Option A is wrong because the private bank acts only as a service provider and lender, not as an internal decision maker for loans between group members.
Option B is wrong because the Reserve Bank of India works at a system level and does not run Self Help Groups directly.
Option D is wrong because Non Governmental Organisations are facilitators and should not permanently control group financial decisions.

Common Pitfalls:
Some learners assume that because formal finance is involved, banks or government agencies must control the details. This misunderstanding weakens the concept of self help and mutual trust which are central to the Self Help Group model.

Final Answer:
Decisions about savings and loan activities in a Self Help Group are taken by the members of the group collectively.