Financial Inclusion Through Self Help Groups for Rural Livelihoods-An Analysis

Abstract

Financial inclusion has becoming central to Indian policy making over the past few years and various attempts have been made to expand its scope. Social and economic justice has to be provided for common people through inclusive growth. Since beginning several measures were undertaking by the Government of India and Reserve Bank of India for financial inclusion with a view to develop all sections of the people. In order to achieve this subjective multi model approach was adopted. Service areas approach, priority sector lending differential rate of interest, leading bank scheme issue of general credit and kisan credit and so on to overcome financial hassle to get credit from financial institutions. In this backdrop NABARD has started an innovative programme 1992 from a linking of the banks to SHG groups of rural poor. It now boasts of the worlds largest microfinance initiatives with over 7.4 million representing 97 million rural households directly becoming parts of this great movement. With the emergence of SHGs and SHGs-Bank Linkage programme contributed large for improving the livelihoods especially women folk. SHGs play a significant role by developing thrift habit and providing credit as and when required. In this paper an attempt is made to examine the performance of SHGs, Bank Linkage for financial inclusion and rural livelihoods.