The Role of NABARD in Promoting Self Help Groups (SHGs’)

Abstract

The microfinance institutions started with the intention of creating financial support to the rural population, which has been neglected by many financial institutions. Micro-finance institutions have proved that rural population is bankable. The initiatives of financial intermediaries can create a dent in the development of financial credit network amongst rural population. NABARD, a major financial institution has taken a frontline in supporting the programmes of MFIs'. From the analysis it is observed that financial support provided by NABARD has reaped fruits to the rural folks.

This paper focuses on the NABARD initiates to support the rural masses through self help groups (SHGs'). This study exhibits that, though there is an increase in SHGs' year by year, it is interesting to note that there is reduction in the amount outstanding by the SHGs'. This shows beyond doubt that the rural folks are also equally positioned as far as banking operations are concerned.