A Study Self Help Groups and its Role for Empowering Women

The government has made laws, facilities, schemes, systems and it is observed Women are not aware of these things. Success is found only 20% to 30% further to add that in our country the Schemes are well planned but implementation part or procedures are not simple and easy to follow for common man. Women are still following same traditions are not educated and confident about themselves do not get proper support from family, there are still some barriers like custom cast etc. It is unfortunate that women who are educated working with Government, companies, in educational field do not get time to work with needy. The Self Help Groups and micro-credit organizations have a long history. In Vietnam, Tontines or Hui with 10-15 members involved in financial activities in cash or in kind have been in existence for generations (Abiad, 1995). In Indonesia, Credit Unions, Fishermen Groups, Village Based Bank like institutions, Irrigation Groups etc. have been in existence since long (Koch and Soetjipto, 1993). In Bangladesh, the success story of Grameen Bank is well known (Pitt and Khandker, 1998 and Pitt et. al, 2003). Thailand, Nepal, Srilanka also accomplished the role of SHGs in enriching the socio-economic conditions of rural poor, particularly women. In India, these Self-Help Groups are promoted by N.G.O.s, banks and co-operatives. The National Bank for Agriculture and Rural Development (NABARD) launched a pilot project for linking SHGs in February, 1992. The Reserve Bank of India advises the commercial banks actively to participate in the linkage programme. Normally, after six months of existence of SHGs and after collecting a sufficient thrift fund, the Groups approach the link banks (either commercial or co-operative) with its credit plan. The NABARD gives 100 per cent refinance to the Banks on their lending through the SHGs As per NABARD‘s microfinance report by March 2012, 79.6 lakh SHGs, with an estimated membership of 9.7 crores, have savings accounts in the banks, with aggregate bank balance of Rs. 6,551 crores. Over 43.54 lakh SHGs have loan accounts with total loan outstanding of Rs. 36,340 crores. However, there remain regional disparities in the growth of the SHG movement with limited progress in eastern and western regions. Women are an integral part of every economy. All round development and harmonious growth of a nation would be possible only when women are considered as equal partners in progress with men. However, in most developing countries, women have a low social and economic status. In such countries effective empowerment of women is essential to harness the women labor in the main stream of economic development. The study shows that SHGs are still in a state of FLUX and their sustainable development depends on number of factors, which are internal and external to the group. No doubt SHGs have set a new empowerment agenda for financial intermediation by banks further, SHG as a system has infused certain synergy among its members to move up in the socio-economic ladders from passive onlooker into an active partner/stakeholder in the development process. Today SHGs in India have become a potential tool for the empowerment

In the mid nineties, SHGs became visible across the country. Several NGOs, most state governments, donors and lenders saw in SHGs an opportunity to mobilize rural women to work for their own social and economic betterment. By the late nineties, SHGs were not just savings and credit groups, but were seen as common interest groups. SHGs began sprouting up in many villages, with multiple SHGs being promoted in the same villages. The important milestones in the evolution of the SHG movement can be classified into six major phases: i) NGOs promote women SHGs as an alternative to mainstream financial services to reach un-reached segments of society; ii) NABARD takes the lead in partnering with NGOs, particularly MYRADA, to pilot the well-known SHG-bank linkage model; iii) State Governments, particularly in the South, take a proactive role in the promotion of SHGs in a big way, by way of revolving loan funds and other support; iv) SHG-Bank linkage reaches the scale of over a million bank-linked SHGs; v) SHG federations emerge to sustain the SHG movement and to provide value-added services; vi) SHGs and SHG federations are given widespread recognition to act as implementing agents of various mainstream agencies such as financial institutions, corporate sector, and government (APMAS, 2007).

1. Over 50% of SHGs members were from families below poverty line, with a majority from SC and ST families; SHG leaders tend to be from better-off families; only 29% of the household in selected villages had a membership in an SHG; reasons for choosing not to join an SHG was primarily because of stringent norms followed by SHGs and about 10% dropped out due to migration. Though one member in every four SHGs contested local elections, their effectiveness once elected was not significantly better than the others. However, SHGs did seem to contribute to social harmony as the composition of women in SHGs reflected different caste groups. 2. A study conducted by NCAER in 2008, sought to assess the impact of the SHG SHG scenarios across six states in five different regions of India. It concluded that the SBLP has positive impact on members by increasing their access to financial services (and reducing household poverty) as well as empowered women through an increase in their self-confidence. 3. A report on SHG Federations: Development Costs and Sustainability, by Girija Srinivasan and Tankha reported that the absence of savings and appropriate legal framework are the severe constraints on the financial viability of federations of SHGs (Srinivasan G., 2010). 4. According to NABARD‘s publication Status of Microfinance in India 2011-12 there are disparities in the geographical spread of SHG bank linkage programme and credit deepening (Nabard, 2012). As on March 2012, out of 33 states, 22 states and union territories have less than 50% of SHGs having a savings bank account have a loan outstanding to banks; another 10 states have 50 to 80 percent of SHGs with loan outstanding; and only one state, namely Andhra Pradesh, has 80% percent of SHGs with loan outstanding to banks. The percentage of SHGs credit linked to bank is highest in Andhra Pradesh with 94% and lowest in the country in Arunachal Pradesh with 4%. Out of 33 states, 9 states & union territories namely, Andhra Pradesh (94%) Puducherry (76%), Tripura (74%), Bihar (73%), Jharkhand (71%) Odisha (58%), West Bengal (56%) and Tamilnadu (56%) and Himachal Pradesh (55%), have more than the national scenario (55%).

India is facing a number of challenges in consolidating, saturating and sustaining SHG movement, especially in SBLP. Towards this, the impediments need to be identified and appropriate strategies have to be developed to overcome the identified impediments. The Government promotional efforts need to be supplemented with learning from different states‘ experiences and independent assessments and observations of present status of SHG institutions in the country.

1) To know the issues in strengthening Self Help Group Movement SHGs and their institutions.

A) Primary Data –Primary data were collected through Questionnaire and Interview method, so as to make study more relevant and practical. B) Secondary Data - To focus on the various determinants of issues of Self Help Groups in Pune City, relevant information was collected from Periodicals, Research Publications, Reference Books, and Related Websites etc.

Three Self Help Groups were selected for this study; they are Deep Griha Society, Pragati Foundation and DMI‘s Fatimabi Mahila Bachat. Around 50 Women working in these Self Help Groups were selected as sample for this study within Pune City.

Simple Percentage Method was used to analyze the data collected from the respondents.

The data analysis includes a descriptive analysis of the Self Help Groups Questionnaire. During interactions, the SHGs shared many more problems/issues besides cost, time and visits. They are: 1. Location of bank is far from the villages 2. Delay in opening of SHG SB account 3. Too much delay in processing loan application 4. No comprehensive understanding on loan, term, rate of interest charged on loans, mode of repayment, installment amount etc. 5. Bribe/ payments to bankers and/or middlemen in case of SGSY/subsidy loans 6. Delay and small amount of loan in repeat/subsequent linkages 7. Loan size based on the amount of savings in SB account, fixed deposits and insurance. 1. SHG federations require a national policy recognizing them as institutions of the poor. The policy must also provide for the SHG federations playing roles that they decide and there must be enabling provisions. 2. NABARD to issue guidelines to all banks for providing bulk finance and other financial services to the SHG federations for enabling those SHG federations that choose to play a financial intermediation role. 3. An appropriate legal form is needed for the SHG federations. Many SHG federations are registered under the cooperative laws, particularly in those states that have parallel liberal cooperative laws. Some SHG federations engaged in social intermediation are registered under the societies / trusts. However, these laws have been inadequate to serve the needs of the SHG federations. There is a need to draft a model SHG federation law at the national level based on wide consultations which can provide the framework for State Governments to enact specific legislations for SHG federations. 4. Livelihood Organizations to be promoted. To provided livelihood promotion services, livelihood organizations need to be promoted. Those SHG members that are engaged in a particular livelihood can become a member of the livelihood organization. 5. Training and capacity building organizations to be promoted and supported. 6. To provide need-based support to SHGs, SHG federations, livelihood organizations and other social organizations, considerable training and handholding support would be needed. District, State and National Level training and capacity building organizations need to be identified, developed and provided support for a period of 5-10 years.

To conclude, the SHGs have made a lasting impact on the lives of the women particularly in the rural areas of Pune. Their quality of life has improved a lot. There is an increase in their income, savings and consumption expenditure. This shows an improvement in their standard of living. The women have gained self-confidence. They got an opportunity to improve their hidden talents after joining the SHGs. They can speak freely in front of large groups of people. They got recognition in the family and society. SHGs have also given women a

members of SHGs belong to different religions. This is a welcome change to have understanding and tolerance towards the members of other religions particularly in a country like India where there is a diversity of religions and castes. Some of the constraints faced by the SHGs must be addressed, the most important being the need for sustained training and capacity building support. Banks must look at SHG Bank linkage as a business opportunity and not just as a social obligation. Imbibing the principles of self help, mutual benefit and self-reliance in the SHPIs and SHGs is a prerequisite. Broadening and deepening the engagement of SHGs would address the larger issues of inequalities discrimination.

1. APMAS (2007). SHG-Bank Linkage Programme: A Recurrent Study in Andhra Pradesh, Communication Division of APMAS published the draft report of the study. 2. Ajay Thanka (2012). Banking on Self Help Groups- Twenty Years, New Delhi, Sage Publications. 3. Supriya Shelar (2011). Empowering rural women through SHGs Press release Sakal Paper, Pune. 4. Guha, S. (2010). Microfinance for Micro Enterprises: An Impact Evaluation of SHGs, Mumbai, NABARD. 5. Liu, D. (2009). Longer- term Economic Impacts of SHGs in India. The World Bank, Development Research Group, Policy Research Working Paper 4886. Sustainable Rural and Urban Development Team. 6. NABARD (2010). Status of Microfinance in India- 2009-10, C-24, G-Block, Bandra Kurla Complex, Bandra, Mumbai. Self Help Groups in India: A study on quality & sustainability. 7. Srinivasan, G. (2012) Microfinance India. New Delhi: Vivek Mehra, Sage Publications. 8. Wolfgang Salomo, et. al. (2010). A Study of SHG Federation Structures in India. DGRV & APMAS.

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