An assessment of Women SHGs under SHGBLP over a decade in India

Abstract

SHG-Bank Linkage Program is the most prominent microfinance in the formal banking sector. Through this program RBI and NABARD have tried to initiate relationship banking. This program is rapidly expanding its outreach under the pioneering initiative of NABARD, the monitoring and the supervision of RBI along with the promotional support from Government of India. In this study we have estimated the parameter, the change in loan disbursement due to changes in the amount of savings, denoted as WSHG^L_S for 2010-11 to 2018-19 which shows that although the savings growth follows positive trend but it prevails at sub optimal level. There can be substantial growth possible if the bottlenecks of the income generation are identified and implemented policy at central, state and local level accordingly. The purpose of the setup of women SHGs under financial inclusion program can have a desirable outcome if the coordination among Women SHGs- CBs- Institutional and Non-institutional partnership is feasible