Impact of Self- Help Groups Bank Linkage Programme in India

Author:Uma Narang*

Abstract:
Self-Help Group means a group of 10-20 members which may or may not be registered representing financial intermediation, but the financial intermediation is not the only primary objective of the groups. The motive is to combine the access to low-cost financial services with a process of self management and development. NGOs or Government agencies usually form and support these SHGs. The members of these groups save the amount which is used for loans. Inspite of considerable expansion in the branch network, a large share of India’s population continues to remain outside the formal banking system. Due to widespread rural bank branch network, the SHG-Bank Linkage Programme is very suitable to the Indian context. Although various alternative ways are being experimented in order to meet the objectives of financial inclusion. The SHG-Bank Linkage Programme is considered as most successful, promising and widely accepted model in India. Self Help Group- Bank Linkage Programme- a pilot project started by NABARD is widely accepted model as one of the largest and successful one in the world. The present study is analytical and based upon secondary data which has been collected from different published reports, journals and existing available literature. The objective of this study is to evaluate the progress and impact of self help group bank linkage programme.

Keywords:Key Words: Growth, Models, Self-Help Group, SHG-Bank Linkage Programme.

DOI:

International Journal of Trade & Commerce (Vol: 1 Issue:2)