Why?
- since independence, State + soc no interest in helping / empowering women
- patriarchal soc + highly discriminatory trads & customs => women treated as 2nd grade citizens
- women also not powerful pressure group who could influence electoral outcomes
- thus, women came together voluntarily to help themselves as SHG
History
- bgldsh
- Mohammed Younus (chairman of Bgldsh gramin bank)
Definition
- group of rural women come together voluntarily to benefit themselves
features
- restricted to rural areas
- max 20 members
- only women
- socio-economically backward
- small savings collected, used to produce goods for rural consumption
- sell product in rural areas, share profits equally
Major problems
- 70% SHG concentrated in 5 south indian states
- historical & sociological factors resp. for uneven spread of SHG
- south indian states SHG have well dev rural soc
- provided opportunities for women to empower themselves thru SHG
- 2nd ARC: suggested model adopted by AP to ensure success of SHG
- safety + security for women at work/edu
- AP used media, NGO, B to generate awareness among rural women abt benefit of SHG
- slogan: every member of SHG can earn 1L/yr
- central govt promoting same as “Lakhpati didi”
- finances
- low savings, no productive business
- AP Govt soln
- matching grants
- encouraged SHG bank linkage for subsidized bank loans
- loans to SHG at very nominal rate of interest
- initially 0.25%, later interest free
- open bank acc for subsidized credit
- but universal banking not fully realized
- => depend on local money lender
- high interest
- force SHG sell item at low price
- Macro financial institutions come to existence in rural areas
- take loans from bank
- give to SHG at higher interest
- AP banned MFI (financial irregularities)
- suggested RBI to regulate MFI to prevent SHG exploit
- lack of skills
Measures to improve SHG Finance
- gender budgeting at lowest level
- collateral free loans
- RBI directed RABARD to ensure RRB + district central Coop bank ensure financial institution in rural areas provide significant portion of loans to SHG
- sensitivity training to staff in rural banks
Skills?
- both CG & SG focus on imparting new skills
- one district one product
Marketing & sales
- separate markets for SHG at local, district, state, national level
- remove middleman, get direct connection b/w producer, consumer
- SG using e marketing to create global markets
Political empowerment
- emergence of SHG => economic independence of rural women
- significant improvement in social indices
- eco independence be transformed into pol independence
- south indian states initiative to ensure pol empowerment of SHG
- encouraged members of SHG to contest elections to panchayat bodies
- panchayats electing SHG given financial rewards
Facts
- SHG mvmt existed for 50 yrs since formation of Self Employed women Association SEWA 1972
- present, 1.2cr SHG
- successful SHG
- Kudumbshree (kerala)
- Jivika (Bihar)
- Looms (Ladakh)
- DWCRA in AP, Telangana
- SHG Bank linkage project in 1992
- covers 14.2cr families thru 1.19cr SHG
- savings deposit = 47242Cr
- 67L SHG outstanding loans worth 1.5L Cr
- 96% repayment
- pro active panchsutra to encourage SHG
- regular meeting
- regular savings
- regular inter loaning
- timely repayment
- up to date maintenance of accounts
- during Covid, collateral free loan limit inc from 10L to 20L
What to do to improve functioning of SHG
- reduce inter regional disparity
- transform SHG members into micro entrepreneurs
- focus on skill dev
- to produce high quality products, services
- bring more under privileged sections of society under SHG