In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.

Assertion (A)- Self-Help Groups (henceforth SHGs) had emerged to fill the gap in the formal credit system.

Reason (R)-  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.

Both (A) and (R) are true and (R) is the correct explanation.

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. Since some kind of collateral is required, vast proportion of poor rural households were automatically out of the credit network.