Promoting Women’s Empowerment in Rural Regions: A study of the Self-Help Group Bank Linkage Program in Jharkhand

Abstract

Historically, many women in India have faced barriers in accessing formal banking services due to cultural norms, lack of awareness and geographical constraints which often limit their ability to engage with mainstream financial institutions. The SHG Bank Linkage Programme, a leading initiative in India, has become a significant tool for societal development specially for women in India. By bridging the gap between marginalized communities and the formal banking system, it is fostering positive change across various social, economic and individual spheres. The collective spirit and peer support within SHGs foster social responsibility and financial discipline, leading to stronger communities and better preparedness for emergencies. This program promotes micro entrepreneurship by facilitating micro credit, resulting in the generation of employment, heightened production and positive impact on the local economy. By supporting women-led SHGs, this programme promotes gender equality and unlock their economic potential, contributing to overall economic development. This research paper analyses the remarkable progress of women-led Self-Help Groups through the SHG Bank Linkage Programme in Jharkhand over five years. The paper specifically focuses on four key factors: Savings, Loan Disbursed, Loan Outstanding, and Non-Performing Assets (NPA). Through the examination of these indicators, the paper aims to present a comprehensive picture of the impact of the SHG Bank Linkage Programme on women's financial inclusion and economic empowerment. This research paper adopts a descriptive approach, relying solely on data collected from secondary sources. This research paper shows how SHG Bank Linkage programme promotes social inclusion and reduced societal discrimination against marginalized communities and women in Jharkhand