24th January, 2016 (MAINS)


Q1. The Self-Help Group (SHG) Bank Linkage Programme (SBLP), which is India’s own innovation, has proved to be one of the most effective poverty alleviation and women empowerment programmes. Elucidate. [12.5marks/2015/GS-2] 200 words.

Please write answer in the comments section.

  • Umesh Sachin

    1.SHG members participate willingly in SBLP as it is designed in ways conducive to their active participation, shared interest, responsibility and economic potential.
    2.SBLP ensures that the members get direct access to and control of additional resources borrowed from the bank.
    3.The additional money resources are committed by the banking system without prescription for what purpose the loan is to be used by the SHG members
    4.SBLP facilitates wider outreach at lower transaction costs & much lower risk costs.
    5.The participating banks have also experienced low additional operational cost and marginal loan losses.
    6.NABARD’s role in policy advocacy and designing SHG-Banking strategy, involving a variety of institutions including RBI and government, influencing policy, funding and technical support is definitely the key to success.
    7.The disadvantaged rural women have become organized into groups. This has facilitated initiation of savings and credit activities, and promotion of income generating programs leading to economic development and independence of the rural women and their families.
    8.It has also led to increased confidence and social status for women, in their communities. It has encouraged the women to participate and contribute in general social and political matters in their respective villages, including women’s rights.

    • http://shashidthakur.com/ Shashi Thakur

      197 words!!! thank you for maintaining word limit. Nicely explained.

      • Umesh Sachin

        thank you

  • Achilles

    The Self Help Group Linkage programme ( SBLP ) was started as a pilot programme in the year 1992 on the basis of the recommendation of S K Kalia Committee.

    The Self – Help Group ( SHG ) Bank linkage programme plays a predominant role in alleviating poverty and empowering women,

    1. SHG- Bank Linkage programme develops faith and confidence between the banks and the poor. In this way the financial support can be easily attained by the marginalized sections for their development.
    2. Earlier the people tend to rely on informal loans and the interest rate for the borrowing is extremely high , with the availability of SHG-BLP the people can get the credit at nominal interest without any hindrances.
    3. SHG imparts freedom of savings and borrowing according to the heterogenous needs and requirements of the group members.
    4. Through this programme , the RBI and NABARD is trying to provide ” relationship Banking ” with the help of NGO’s .
    5. SHG-Bank is considered not only tool for alleviation of poverty but offering women the possibility of breaking down from exploitation and isolation in India.
    6. SHG Provides favourable environment for enhancing the equitable growth with empowerment of women.

    • http://shashidthakur.com/ Shashi Thakur

      196 words!! nicely explained with use of simple words.