Publication: SHG-Bank Linkage: A Success Story
Date
2020-03
ISSN
Published
2020-03
Author(s)
Kumar, Shantanu
Pinto, Alreena Renita
Arora, Amit
Roy, Sourav
Abstract
Access to adequate and timely credit at
affordable rates is critical for the rural poor to alleviate
high cost debt and invest in livelihood opportunities.
Despite the government of India’s (GOI’s) best efforts,
financial inclusion of the rural poor has been beset with
multiple challenges. The SHG-Bank Linkage Programme (SBLP)
was initiated as an action research by the National Bank for
Agriculture and Rural Development (NABARD) in 1989 and was
subsequently crystallized into a pilot project in 1992. The
pilot project was conceived of as a partnership between
SHGs, Banks and NGOs in which the Reserve Bank of India
(RBI) allowed banks to lend directly to SHGs and NABARD
committed to providing re-finance and promotional support.
The SHGs have successfully leveraged about forty one billion
US dollars loans from banks since 2013-2014. Advocacy with
the RBI, digital financial services (DFS) and Indian Banks
Association (IBA) and interventions at the field level have
resulted in exemplary growth in the SHG-Bank linkage credit
portfolio. The key outcomes are summarized in this report.
Citation
“Kumar, Shantanu; Pinto, Alreena Renita; Arora, Amit; Roy, Sourav. 2020. SHG-Bank Linkage : A Success Story. South Asia Agriculture and Rural Growth Discussion Note Series;No. 3. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/34725 License: CC BY 3.0 IGO.”