Self-help groups are informal groups of people who come together to address their common problems. While self-help might imply a focus on the individual, one important characteristic of self-help groups is the idea of mutual support – people helping each other. Self-help groups can serve many different purposes depending on the situation and the need. For example, within the development sector, self-help groups have been used as an effective strategy for poverty alleviation, human development and social empowerment, and are therefore often focused on microcredit programmes and income-generating activities
- The concept evolved over decades and was pioneered by Nobel laureate Mohammad Yunusas Self Help Groups (SHGs) in 1970s.
- SHG movement in India gained momentum after 1992, when NABARDrealised its potential and started promoting it.
- NABARD’s SHG-Bank Linkage Program (SBLP) connected group members to formal financial services.
- Over the last two decades, the SBLP has proven to be a great medium for social and economic empowermentfor rural women.
- India has witnessed state-led promotion of SHGs through a three-tiered architecture of community institutions at group, village and cluster levels
- In 1999, Government of India, introduced Swarn Jayanti Gram Swarojgaar Yojana (SGSY)to promote self-employment in rural areas through formation and skilling of SHGs.
- The programme evolved as a national movement in 2011 and became National Rural Livelihoods Mission (NRLM).
- The programme was renamed in November 2015 as Deendayal Antyodaya Yojana (DAY –NRLM).
- DAY –NRLM now covers 100 million families through 8.5 million SHGs with savings deposit of approx. INR 161 billion.
- State government initiatives such Kudumbasree in Kerala and Jeevikain Bihar.
- Women’s SHGs are being supported by Government of India’s National Rural Livelihoods Mission (NRLM) which is co-financed by the World Bank. NRLM has scaled up the SHG model across 28 States and 6 Union Territories of the country, reaching more than 67 million women. The women have saved $1.4 billion and leveraged a further $37 billion from commercial banks.
- SHGs have played an important role in enabling financial inclusion in rural areas.
- It hasfinancially empowered rural women within the family and in local community.
- SHGs have the required social and financial capital to expedite India’s economic growth.
- The Social capital of SHGs could be an assetfor solving various social issues in India e.g. gender based discrimination, dowry system, casteism etc.
- There are many successful cases where SHG women have come together to close liquor shopsin their village.
- They also act as a delivery mechanism for various services like entrepreneurial training, livelihood promotion activity and community development programs.
- Study shows that women in SHGs are more likely to save on a regular basis, have formal loans and scored more on average on the empowerment index.
- They can act as an intermediary to provide financial services in their community
- First, thanks to the intensive processes of developing social capital under the DAY-NRLM, women’s SHGs and their federations have emerged as vibrant community institutions of the poor. They have expanded their mandate from following only the Panchasutra of good savings and borrowing to Dasasutra that encompasses access to public services, education, health and well-being of poor households.
- Second, the community resource persons (CRPs) are the biggest strength of this movement. Over 2.5 lakh women CRPs, who have come out of poverty, have been setting up women’s collectives across the country, and enabling the last-mile delivery of livelihoods extension and financial services to rural poor households.
- Third, women SHGs and panchayat leaders are trying to find more meaningful solutions to the challenges of development. The women SHGs are involved in gram sabha meetings and in developing gram panchayat development plans. Over one lakh SHG women have been trained to conduct social audit of programmes to improve accountability to the community.
- Fourth, financial resources from all ongoing programmes in rural areas are now focused on villages with social capital of the DAY-NRLM women SHGs on a priority basis.
- Fifth, opportunities for skilling and diversification of livelihoods are being provided through the skills programmes of the ministry of rural development and community-training institutions.
- Sixth, credit linkage for these women SHGs are a priority, and a series of confidence-building measures have been undertaken to give banks the comfort that these women will not only borrow, but also return on time. The setting up of the community-based recovery mechanism (CBRM), positioning community resource persons (bank sakhis) to act as a bridge between community and the bank as well as positioning of more than 4,000 bank sakhis as Business Correspondent Agents (BCAs) has generated confidence for the DAY-NRLM system. The training of bank managers and efforts at financial literacy and skills also helped.
- Seventh, pro-poor public welfare programmes have improved the asset base of many women SHGs. The DAY-NRLM women played a very important role in building a movement for better public services at the local level. This was seen most during the Gram Swaraj Abhiyan in 65,000 villages to guarantee seven very basic services for the deprived and in the POSHAN Abhiyan.
- Eighth, the efforts at promoting innovative interventions in farm and non-farm livelihoods broke new grounds in leveraging social capital of the SHGs for sustained economic activity. The setting up of 11,426 custom hiring centres and 760 rural transport centres, managed by the SHGs, is an indication of the diversity of livelihood development and opportunities.
- Face masks: the first shield against current COVID 19 was in short supply. As per report of ministry of rural development, more than 132 lakh masks have been produced by 14,522 SHGs involving 65,936 members in 399 districts, spread across 24 states of India, in just a period of 15 days from March 15 to March 30, 2020.
- Community kitchens: With huge numbers of informal workers losing their livelihoods during the lockdown and food supply chains getting disrupted in some areas, SHGs have set up over 10,000 community kitchens across the country to feed stranded workers, the poor, and the vulnerable. Kudumbashree alone has set up 1300 kitchens in Kerala.
- Reaching to the grassroots: In Jharkhand, where poverty is high, SHGs – being the closest to the ground – are helping district administrations identify pockets of hunger and starvation so efforts can be made to ameliorate them.
- SHGs are helping curb rumours and misinformation: The women are systematically using their vast network of WhatsApp groups to ward off chaos and confusion and avoid rumor mongering.
- Creating Awareness: In Bihar, one of India’s poorest states, Jeevika – the state’s SHG platform – is spreading the word about handwashing, quarantine and self-isolation through leaflets, songs, videos and phone messages
- Reaching the needy: Women are also running help desks, and delivering essential food supplies to the elderly and the quarantined. In Jharkhand, where large numbers of people migrate to other states to work, they are running a dedicated helpline for returning migrants and other vulnerable families.
- Delivering Services: Since access to finance is critical for people to sustain themselves during the lockdown, SHGs women who also work as banking correspondents have emerged as a vital resource. Deemed as an essential service, these bank sakhis have continued to provide doorstep banking services to far-flung communities, in addition to distributing pensions and enabling the most needy to access credits into their accounts through direct benefit transfers (DBT).
- Government programs can be implemented through SHGs. This will not only improve the transparency and efficiency but also bring our society closer to Self-Governance as envisioned by Mahatma Gandhi. Constant and enduring structural handholding support from the self-help group promoting institutions (SHPIs).
- Employment in the large unorganised sector can be improved if banks channelize funds through the self-help groups (SHGs).
- Linking the SHG members to other social security schemes like Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana and Atal Pension Yojana.
- Emphasising SHG movement as an engine of growth in rural India is very vital. It has already been show in during the pandemic the potential SHG’s have. They have been warriors, support system and provided selfless service in the face of adversity.
- Across the country, women’s SHGs have risen to this extraordinary challenge with immense courage and dedication. Their quick response to food insecurity and shortages in goods and services shows how this decentralized structure can be a vital resource in a time of crisis.
- The strength of India’s rural women will continue to be essential in building back economic momentum after the most critical period is over.
