Two Decades of SHG-Bank Linkage Programme:Different Facets@

The implementation of Self-Help Group Bank Linkage Programme (SBLP) during the last two decades (1992-2012) in the country has given NABARD enough experience and confidence to take the movement to the next higher stage, i.e., the SHG-2 which, in addition to many new features, would focus more on sustainability aspects of SBLP. Among the various initiatives being proposed under SHG-2, the most important of those is the promotion of voluntary savings to generate resources at the SHG level so that dependency on external sources of fund can be minimised. Cash credit as preferred mode of lending, scope for multiple borrowings by SHG members matching with their repaying capacity, avenues to meet higher credit requirements for livelihood creation, need for SHG Federations as non-financial intermediary, rating and audit of SHGs as part of risk mitigation system, strengthening monitoring mechanisms, etc., are some of the other proposed features of SHG-2.

However, some of the unfinished agenda of SHG-1, particularly, the challenges/issues, viz., issues relating to outreach (whether all very poor or hard core poor identified and included in financially under SBLP), quality and sustainability of Self-Help Groups, serious efforts pertaining to convergence of SBLP with SGSY approaches taking the strengths of both for achieving the target of financial inclusion, and graduation of groups from consumption to production to investment credit finally leading to graduation to micro-enterprise level posing severe challenges relating to entrepreneurship development, appropriate technology and product design and marketing of rural products, need to be given priority while designing the roadmap for the SHG-2.