Which of the following is a component of the SHG-bank linkage program in India?

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Step-by-step explanation:

1. Define SHG-bank linkage: The SHG–bank linkage program (promoted by NABARD) connects self-help groups (SHGs) with formal banks so that banks extend credit to the group as a unit and provide savings and credit facilities; facilitation and capacity building are often provided by other agencies.

2. Evaluate each statement:
   - $ (1)$ Microfinance institutions providing loans directly to SHGs: Microfinance institutions (MFIs) operate separately and are not a core component of the SHG–bank linkage, which specifically links SHGs to banks. So (1) is not a component.
   - $ (2)$ Banks providing loans to individual members of SHGs: Under the linkage, banks ordinarily lend to the SHG (the group) rather than to individual members. So (2) is not a correct description of the program.
   - $ (3)$ Non-governmental organisations providing capacity building training to SHGs: NGOs commonly act as facilitators, providing training, bookkeeping support and capacity building—this is a key component.
   - $ (4)$ State government providing subsidies to SHGs for credit: State governments (and agencies via schemes) often provide seed capital, revolving funds or subsidies to support SHGs’ credit absorption—this is part of the support structure.

3. Conclusion: Only statements (3) and (4) are components of the SHG–bank linkage program. Therefore the correct option is the one that lists 3 and 4 only.

FINAL_ANSWER: b

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