Digitization of SHGs for a Success of Microfinance in India

SHG-Bank Linkage Programme has been pursued as a potential platform for poverty alleviation in the India. SHGBLP requires maintenance of a strong, transparent and up to date information system of SHGs on both financial and nonfinancial parameters which could generate various returns and reports for information of its stakeholders. Digitization can make the information easier to preserve, access, analyze and generate various reports, and share it with stakeholders, financers, development agents, researchers, policymakers, etc. This can reduce the transaction costs by minimising the need for human resources for maintenance of volumes of physical records. NABARD has launched a pilot project for digitization of SHG data base under project EShakti which envisages mapping of the existing SHGs in the district (bank wise, branch wise) by capturing of detailed financial and non-financial information about the SHG and its members and uploading them through a customised software. The paper is based on analysis secondary data and field level experiences during the implementation of the pilot project of EShakti in Dhule district of Maharashtra and Ramgarh district of Jharkhand.