(a): the number of Self Help Groups (SHGs) and women SHGs which have
been sanctioned loans by Banks during the last three years and the
current financial year in the country, State-wise including Bihar; and
(b): the steps taken/being taken by the Government to encourage SHGs
to avail the credit benefits?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) & (b): The SHG-Bank Linkage Programme was launched by NABARD in 1992,
by synthesizing the formal financial system and informal sector. At present,
a large number of Self Help Promoting Institutions (SHPIs), the banking agencies
and Microfinance Institutions (MFIs) are pursuing this programme for upliftment
of the poor. The programme is also the main contributor towards the financial
inclusion process in the country. As on 31 March 2010, there were more than
69.53 lakh saving-linked SHGs and more than 48.51 lakh credit-linked SHGs and
thus about 9.7 crore poor households have been covered under the programme.
The data in respect of SHGs and Women SHGs which have been sanctioned loans
by bank during the last three years is placed at Annex.
The State-wise data in respect of SHGs which have been disbursed loan by
banks during the last three years is given at Annex I.
The following are some of the initiatives that have been taken to encourage
bank lending to SHGs, including women SHGs.
(i) To give an impetus to microfinance the Reserve Bank of India (RBI) has
categorized microfinance under priority sector lending and lending to SHGs has
been brought under advances to weaker sections in priority sector lending. Once
SHGs attain maturity in handling their own resources, Banks grade them and
extend credit to the qualified Groups in multiples of their savings.
(ii) RBI has permitted banks to use the services of Non Governmental
Organizations (NGOs)/SHGs, Micro Finance Institutions (MFIs) and other Civil
Society Organisations as intermediaries in providing financial and banking
services through Business Facilitator (BF) and Business Correspondent (BC)
models.
(iii) RBI has advised banks to provide adequate incentives to their branches
for financing SHGs.
(iv) NABARD extends refinance to Banks for on lending to SHGs at a rate of
8.25 % p.a. to commercial banks [7.75% p.a. for financing in NER including
Sikkim] and at 7.75% p.a. to RRBs and Cooperatives (subject to periodic revision).
(v) NABARD has introduced training and capacity building of SHGs / grading of
SHGs, etc.
(vi) A Microfinance Development and Equity Fund has been set up in NABARD
with a corpus of Rs. 200 crore. This corpus has been enhanced by another
Rs. 200 crore in the Financial Year 2010-11.