Which of the following is true regarding Self Help Groups?

1. They failed to fill the gap in the formal credit system.
2. Self help groups played an important role in women empowerment.
3. They pooled money with the help of small contributions done by members of the group.

2 and 3

Self-Help Groups (henceforth SHGs) have emerged to fill the gap in the formal credit system because the formal credit delivery mechanism has not only proven inadequate but has also not been fully integrated into the overall rural social and community development. Women who were part of SHGs become more self-reliant as all their financial constraints were addressed. All the members come together and contribute in small proportion, which they eventually lend to the person in need at lower interest rates.