Self Help Groups

Introduction

• A 'self-governed, peer controlled voluntary Ass of people with similar S-E background who aspire to improve their living stds & address their common problems'
• Origin—ROSCA (Rotating Savings & Credit Association)—> Gained momentum after 1992 (SHG Bank Linkage Project)

Importance of SHGs

• Poverty alleviation & Rural Development —
• Financial inclusion-- Facilitates access to credit & Micro Finance to poors + SHGs members act as "Banking Correspondent" (Bank Sakhi prog)
• Provide Livelihood  (By vocational training, skill development)-- Improved living standards
• Promotes savings & investments
• Promotes Entrepreneurship—self-employment through setting of micro-enterprise
• Awareness generation + Efficacy in implementation of Govt schemes
• DAY-NRLM, MGNREGA
• Social Audits

• Many +ve externalities

• ↑ literacy, Nutrition-- Operates PDS shops (MH)

• ↑ Maternal & Child health-- By implementing ICDS & MDM

• Better health care, family planning

• Voice to marginalized—Social justice + Inclusive growth.

• Social Justice & Women empowerment--

• Financial independence through self-employment

• Encourages entrepreneurship

• Financial independence— ↑ Literacy rates, nutritional status-- ↑ their self esteem
• Inculcates leadership skill—participate actively in Gram Sabha & Elections
• SHGs bonds women into a collective force--> Act as PGs—Prohibition of liquor in Bihar because of pressure from women SHGs.
• Facilitate--
• Democratic Deepening & Grassroots empowerment ( Act as PGs at Village level)
• Creation of Social capital 
• Combating Social ill— Close liquor shops

• Imbibing spirit of Self Help, Democracy, Social Solidarity & social cohesiveness

• Role of SHGs during COVID-19
• MoRD— 132 lakh+ masks were produced by 14.5 k SHGs
• Women SHG members (Bank Sakhis')— provided doorstep banking services— pensions etc
• Kudumbashree—Dispelling fake news + disseminating authentic information through Whats App groups + Delivered free ration + Running kitchens around  state
• Prerna SHG (UP)—communicated on social distancing by street art & wall paintings.

Case studies

• Kudumbashree (Kerala)—Skill training & poverty eradication of women

• Sorath Mahila Vikas Mandali (Gir region) fighting social taboos by helping widows 

• TN used SHGs to inculcate sanitation habits among people under SBM

• Haryana used for increasing sex ratio & BBBP

• SHGs like SEWA, Lizzat papad promotes entrepreneurial culture among women.

• TANWA ( TN Women in Agriculture) by TN govt

Govt steps

• NABARD efforts--
• SHG-Bank Linkage Prog—For providing micro-finance / Collateral-free loans to SHGs.
• By providing grant for training, capacity building, skill up-gradation. 
• “Women SHGs Development Fund” (NABARD) with a corpus of 500 cr 
• e-Shakti initiative-- for Digitization of SHGs
• Rashtriya Mahila Kosh—acts as a facilitating agency & provides loans to NGO-MFIs
• Budget 2019-20
• Women SHG interest subvention prog to be expanded to all districts
• Women SHG having a Jan dhan a/c to be allowed a overdraft of ₹5000.
• NRLM, DAY –NRLM— To promote self-employment in rural areas through formation & skilling of SHGs.
• Recent Announcement--
• To create 75 lakh SHGs by 2022
• 2x collateral free loans to WSHGs from 10 lakh to Rs 20 lakh.

Challenges for SHGs

• Socio-cultural hurdles—  
• Embedded Patriarchy, Caste Rigidities
• Illiteracy— Information asymmetry  
• Lack of financial literacy—Creates Mgt & Governance issues
• Lack of proper training regarding production tech, quality, packing, etc—No competitive adv.
• Problems related to Raw Materials, Marketing—Bcz of
• Lack of linkages with marketing agencies
• Inadequate sales promotion
• Issues of quality & Tough Competition
• 2nd ARC
• Most of their activities are still based on primitive skills related mostly to primary sector enterprises—Poor value addition—No substantial increase in the income of group members
• SHG has led to definite social empowerment of poors but economic gains rnot adequate to bring a qualitative change in their life.  

Way forward

• Est separate SHG monitoring cell in every state

• Awareness camps about schemes of assistance available to SHSGs 

• Invest in digital-financial literacy & Entrepreneurship Dev 
• With increasing Urban poors—Need to develop & strengthen SHG network in urban areas.

• 2nd ARC—SHGs needs to be extended to urban & peri-urban areas

              SHGs are imperative for economic revival & reconstruction in post covid order