Reconciling Self Help Groups and Bank Linkage Programme: A descriptive study
Dr. Raghu. C
Women empowerment, Self Help Groups, Bank linkage, Thrift, Savings, Loans.
Existence of Chronic poverty is the major concern for the country and mitigating it has been the core of all developmental efforts. Post independence, several poverty alleviation programmes initiated by the government have resulted in the overall development of the poor but these programmes were not able to achieve the targeted success. Lack of capital and inaccessibility to credit is the serious constraint to the development and inhibits poor from responding to the opportunities created by the process of development. Empowerment of women is the most important means of poverty eradication. Despite considerable improvement in the status of women post independence, they still constitute the largest section of deprived population. Certain problems such as poverty, illiteracy, lack of skills, availability of proper health care facilities, ignorance etc., which are persistent in rural economy, cannot be tackled individually but could be effectively solved through group efforts. Such group efforts are called as ‘Self Help Groups”, which has become a powerful tool in initiating the change and transforming the lives of crores of poor and marginalized across the country. Self Help Groups are small, homogenous affinity group of rural poor, comprising of not more than 20 members each. These groups represent and foster true democratic culture, wherein all members of the group take active part in decision making through discussion. The membership is open, voluntary and group is primarily formed to practice voluntary savings and thrift on a regular basis. After being formed, Self Help Group starts collecting a fixed amount of thrift from each member regularly. Almost for six months, SHG only collects thrift and no loans will be given to any member, irrespective of need. It tests the patience and tries to instill mutual trust amongst the group members and this is how the working fund is generated out of small thrift though initially it is negligible. During this period, the group opens a savings account with a bank or a co-operative society, which further would like to extend credit for the group’s activities, and deposit the collected savings in that financial institution. In turn RBI has directed all banks
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Unique Paper ID: 150130

Publication Volume & Issue: Volume 6, Issue 7

Page(s): 1 - 5
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