Q.Suggest one banking service to improve the financial literacy and payment mechanisms to rural households in Manipur.

A is true, R is true, but R does not explain A.

Assertion (A) is correct: a Self Help Group (SHG) is indeed a voluntary financial intermediary/informal association, typically composed of 10 to 20 local women (or men) from similar socio-economic backgrounds, who come together to pool small savings regularly and extend credit to members.

Reason (R) is also correct as a general statement: SHGs do empower the saving habit, especially among rural women, by encouraging regular small deposits and building financial discipline and confidence.

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Expanding the Business Correspondent (Bank Mitra) model — doorstep banking agents who also train villagers in using mobile/UPI-based digital payments — is a concrete, practical banking service to raise rural financial literacy and strengthen payment access in Manipur.

Many rural households in Manipur's hilly and remote areas lack easy physical access to bank branches, and many account-holders remain unfamiliar with digital payment tools. A Business Correspondent (Bank Mitra) posted in or visiting each village can (i) help households open and operate basic (BSBDA/Jan Dhan-type) accounts, (ii) conduct simple on-the-spot demonstrations of mobile banking, UPI and ATM/debit card use so households become comfortable with digital payment mechanisms, and (iii) explain savings, credit and insurance products in the local language. This single service — doorstep banking combined with hands-on digi …