About Self Help Group – Bank Linkage Programme:
- It was launched by NABARD in 1992 which has blossomed into the world’s largest microfinance project. It has evolved as a cost-effective mechanism for providing financial services to the unreached and underserved poor households.
- The components of Self Help Group (SHG) Bank linkage (BL) are as follows:
- Training and sensitization of Bank Branch Managers
- Training and positioning of Bank Sakhis at Rural Bank Branches
- Initiate Community Based Repayment Mechanism (CBRM) at Rural Bank Branches
- Credit Linkage of SHGs
What are Self-Help Groups?
- These are small, informal and voluntary associations of individuals, usually from similar socio-economic backgrounds, who come together to address common social and economic needs.
- SHGs are primarily focused on empowering their members, particularly women, through mutual support, collective decision-making, and skill development.
- The SHGs which follow ‘Panchsutras’ viz. conduct of regular group meetings, regular savings within the group, internal lending based on the demand of members, timely repayment of loan and maintenance of proper books of accounts are considered to be of good quality and over years have proved themselves to be good customers of Banks.
