Self Help group bank linked programme

Self Help group bank linked programme was started in

(A) 1990
(B) 1992
(C) 2010
(D) 2016

EXPLANATION

1. Introduction

  • The Self Help Group (SHG) – Bank Linkage Programme (SBLP) is a microfinance initiative aimed at providing rural poor, especially women, access to formal banking services.

  • Started by: National Bank for Agriculture and Rural Development (NABARD)

  • Year: 1992

  • It was introduced as part of India’s efforts to financially empower rural communities.

2. Objectives of the Programme

  1. Financial Inclusion:

    • Extend formal banking services (savings, credit, insurance) to rural areas where access was limited.

  2. Promote Savings Habit:

    • SHG members contribute small amounts regularly to build a group corpus, fostering discipline and financial planning.

  3. Microcredit for Livelihood Activities:

    • Banks provide loans to SHGs, which then lend to members for income-generating activities like agriculture, poultry, dairy, handicrafts, etc.

  4. Empowerment of Women:

    • Majority of SHGs consist of women, helping them gain economic independence, confidence, and social voice.

3. Mechanism of SHG-Bank Linkage

  1. Formation of SHG:

    • Typically 10–20 members, often women, come together voluntarily.

    • Members contribute to a common savings fund regularly.

  2. Capacity Building:

    • Members are trained in bookkeeping, leadership, and income-generating activities.

  3. Bank Linkage:

    • After maintaining savings for 6 months to 1 year, SHGs become eligible for bank loans.

    • Banks provide revolving credit based on the group’s savings and repayment history.

  4. Repayment and Growth:

    • SHG loans are repaid in installments, which enhances creditworthiness and increases borrowing capacity.

4. Impact of the Programme

  • Widespread Reach:

    • India now has millions of SHGs linked to banks, covering tens of millions of rural families.

  • Global Recognition:

    • Considered one of the largest and most successful microfinance initiatives in the world.

  • Social Empowerment:

    • Women members gain decision-making power, and communities experience economic upliftment.

5. Key Points to Remember

Aspect Details
Year Started 1992
Initiating Body NABARD
Focus Rural poor, women, financial inclusion
Mechanism SHGs save → linked to bank loans → support income-generating activities
Outcome Financial empowerment, social upliftment, large-scale microfinance model

✅ Answer:

(B) 1992 ✅

Self Help group bank linked programme