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