With reference to ‘Water Credit’, consider the following statements: ​ 1. It puts microfinance tools to work in the water and sanitation sector. ​ 2. It is a global initiative launched under the aegis of the World Health Organization and the World Bank. ​ 3. It aims to enable the poor people to meet their water needs without depending on subsidies. ​ Which of the statements given above are correct? ​

The answer is C (1 and 3 only). Water Credit is a microfinance-based approach to water and sanitation. Poor households get small, repayable loans to build a toilet, install a water connection or buy a storage tank, and they repay from their own income. The core idea is that the water sector can run on credit instead of grants.

• Statement 1 is correct. It applies microfinance tools to water and sanitation, which is the whole point of the initiative.
• Statement 2 is wrong. Water Credit was promoted by UN-linked development partners, notably UNDP, with the Water and Sanitation Program and other partners. It was not launched under the aegis of WHO and the World Bank, so this rules out options A, B and D.
• Statement 3 is correct. The aim is to let poor people pay for water access through credit, reducing dependence on subsidies and grants that often fail to reach or sustain the poor.

On the Mains side, this links to the debate on financing universal water access, cost recovery versus subsidy, and the role of microfinance in inclusive development. Keep the SDG 6 (clean water and sanitation) link in mind.

Trap: Aspirants see "World Bank" and "WHO" as the default global water bodies and accept statement 2 without checking the sponsoring agency.