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Role of Self-Help Group-Bank Linkage Programme ( SHG-BLP) in Financial Inclusion: Evidence from Major States


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1 IIT-Madras, India
     

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Of several innovative financial inclusion measures undertaken by the government over the years to serve the financially excluded population, the most notable one is the Self-Help Group-Bank Linkage Programme (SHG-BLP). The present study examines the banks’ lending and savingsmobilisation activities under SHG-BLP, and the level of financial inclusion achieved through SHG-BLP in 20 major participating states for the period 2007-08 to 2017-18. Although SHG-BLP are well dispersed across the states, there is a large variation amongst the states in the usage of formal banking services including savings and credit facilities. Results show that public sector banks and Regional Rural Banks are more intensively involved in the SHG-BLP initiatives. Karnataka, West Bengal, Kerala, Chhattisgarh and Bihar rank high in the financial inclusion index of all states constructed using SHG- BLP related evaluation.

Keywords

Financial inclusion, Indian Banking, Self Help Group-Bank Linkage Programme (SHG-BLP), Financial Inclusion Index.
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  • Role of Self-Help Group-Bank Linkage Programme ( SHG-BLP) in Financial Inclusion: Evidence from Major States

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Authors

M. S. Elayaraja
IIT-Madras, India

Abstract


Of several innovative financial inclusion measures undertaken by the government over the years to serve the financially excluded population, the most notable one is the Self-Help Group-Bank Linkage Programme (SHG-BLP). The present study examines the banks’ lending and savingsmobilisation activities under SHG-BLP, and the level of financial inclusion achieved through SHG-BLP in 20 major participating states for the period 2007-08 to 2017-18. Although SHG-BLP are well dispersed across the states, there is a large variation amongst the states in the usage of formal banking services including savings and credit facilities. Results show that public sector banks and Regional Rural Banks are more intensively involved in the SHG-BLP initiatives. Karnataka, West Bengal, Kerala, Chhattisgarh and Bihar rank high in the financial inclusion index of all states constructed using SHG- BLP related evaluation.

Keywords


Financial inclusion, Indian Banking, Self Help Group-Bank Linkage Programme (SHG-BLP), Financial Inclusion Index.

References