Shg-Bank Case Study

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IMPACT OF SELF HELP GROUPS-BANK LINKAGE PROGRAMME ON RURAL DEVELOPMENT: EVIDENCE FROM INDIA

ABSTRACT

Self Help Groups – Bank linkage programme, which is the largest microfinance programme in the world today. The programme has grown at enormous pace during past two decades and emerged as the most prominent means of delivering micro finance services in India. This paper reviews the progress of SHG- Bank linkage programme at state levels, and examines its impact on development of people living in rural areas. By using regression, this paper will analyse the impact of SHGs participation in formal banking system (measured by No. of bank accounts linked to SHGs and loan disbursed to SHGs) on consumption expenditure in rural areas, employment and poverty status in rural areas. This study aims to show that SHG- Bank linkage programme has helped the rural areas by improving the economic and social status of people living in rural areas. The regression coefficients of SHGs
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