Q1. In March 2026, Bank of Baroda operationalized a digital credit micro-lending facility by launching an overdraft (OD) facility on a credit line through UPI. Who are the primary beneficiaries targeted under this specific initiative?
- (a) Retail traders registered under the MSME digital platform
- (b) Verified members of Women Self-Help Groups (SHGs)
- (c) Individual salaried employees holding corporate accounts
- (d) Individual marginal farmers under the PM-KISAN scheme
Answer & solution
Answer: (b) Verified members of Women Self-Help Groups (SHGs)
Correct Answer: Option 2 – Verified members of Women Self-Help Groups (SHGs)
Explanation:
In March 2026, Bank of Baroda became the first bank to launch a UPI-linked credit line/overdraft (OD) facility (of around ₹5,000) specifically targeted atverified members of women Self-Help Groups (SHGs).
Important Facts:
• The facility allows micro-credit disbursal directly through UPI rails, easing access for SHG members.
• Bank of Baroda is a major public sector bank headquartered in Vadodara, Gujarat.
• SHG-linked micro-lending supports the wider financial inclusion and women's economic empowerment agenda.