Regional Disparities in Non-Performing Assets of Self- Help Groups: Analysing The NRLM-Bank Linkage Programme in Regions Of Uttar Pradesh

The Government of India started the NRLM bank linkage scheme to give financial assistance to the rural poor via Self Help Groups (SHGs). The study examines the non-performing assets (NPAs) of the bank linkage project of the National Rural Livelihood Mission (NRLM) in Uttar Pradesh. The findings indicate that, in comparison to Western Uttar Pradesh, the NPA levels of the NRLM bank linkage scheme in Eastern Uttar Pradesh are lower. The study highlights that there are various reasons such as insufficient loan monitoring and appraisal, insufficient SHG member training, and delayed loan disbursements that are responsible for the higher NPA ratios. Furthermore, the research indicates that Eastern Uttar Pradesh has a greater loan recovery rate in spite of somewhat poorer economic conditions and a higher frequency of natural disasters. Several policy implications for the NRLM bank linkage programme are also highlighted in the study. In addition to routinely providing training to SHG members to enhance their financial literacy and management abilities, the study makes the case for improved loan evaluation and monitoring in order to lower the risk of non-performing assets (NPAs).