PERFORMANCE OF SHGS-BANK LINKAGE PROGRAMME FOR FINANCIAL INCLUSION IN INDIA

The study presents the Performance of SHGs-Bank Linkage Programme for Financial Inclusion in India. The Self Help Group-Bank Linkage Programme (SHG-BLP) was launched twenty-five years ago in 1992. This programme was an innovation harnessing the synergy of flexibility of informal system with the strength and affordability of formal system. Three radical innovations were introduced through the RBI/NABARD guidelines on SHG-BLP. The study found that there is an increase of 13% in the number of SHGs savings linked and 25% in the savings amount during 2022-23 as compared to 2021-22. Both the number and amount of SHG savings with banks show a positive trend over the last three years. A similar increasing trend can be observed in the number and amount of SHGs with loans outstanding with banks over the last two years. Loans disbursed to SHGs have consecutively increased over the last two years in both physical and financial terms recovering from a dip in the FY 2021 due to the pandemic. A comparison of the share of banks in the amount of SHG savings and loans outstanding indicates that commercial banks had a major share at 59% and 69%, followed by RRBs at 31% and 26 % respectively. KEYWORDS: Financial, Inclusion, SHGs, Bank Linkage Programme, Development.