Impact of Microfinance on Women Empowerment in Bihar-

A Case Study of North Bihar

A dissertation submitted during 2021 to the University of Hyderabad in partial fulfillment of

the requirements for the degree of Master in Arts in Economics

By

19SEMF19

Kumari Komal

School of Economics

University of Hyderabad

Hyderabad -500046

1
 Declaration

I, “Kumari Komal” hereby declare that this dissertation entitled “Impact of microfinance on

women empowerment In Bihar:-A case Study of North Bihar” submitted to the University of

Hyderabad in partial fulfillment of requirement for the degree of Masters of Arts in

Economics is original work carried by me under the supervision of Dr. Raja Sethu Durai,

School of Economics , University of Hyderabad.

I also declare that to the best of my knowledge, this dissertation is free from plagiarism and

no part of the dissertation has been previously formed the basis for award of any of the other

degree, diplomas, fellowship and any other similar title of recognition of any other

University.

(Kumari komal)

Signature of the student

Enrollment No.- 19SEMF19

JULY 2021

2
 Certificate

This is to certify that the research work contained in this dissertation title “Impact of

Microfinance on women empowerment in Bihar-A Case Study of North Bihar” submitted by

“Kumari Komal” bearing Enrollment No. 19SEMF19 has been carried out under my

supervision and has not been submitted elsewhere for the degree.

Dean

School of Economics

Dr. Raja Sethu Durai

Associate Professor

School of Economics

University of Hyderabad

3
 Acknowledgements

I express my deep sense of gratitude with profound respect to my research supervisor Dr.

Raja Sethu Durai for his guidance, endless patience, unstinted cooperation, and academic

motivation through my research work. I am thankful to him for the freedom he has given to

me and for his constant concern about this research work. I am thankful to School of

Economics for giving us this opportunity to work on our own research paper.

Lastly, I want to thank my family and friends for this constant support and motivation in this

worst pandemic situation also.

4
 Table of Contents

S.no. Chapter Page no.

Declaration 2
Certificate 3
Acknowledgement 4
Executive Summary 6
CHAPTER 1 MICROFINANCE 7-14
7
1.2 Introduction 9
1.3 Meaning of microfinance
1.4 Objectives
1.5 Features of Microfinance
1.6 Role of Microfinance
1.7 Definition by different economist
1.8 Benefits
CHAPTER 2 WOMEN EMPOWERMENT
2.1 Definition and introduction
2.2 Self Help Groups(SHGs)
2.3 Gender Budget Summary table
2.4 Overview of Expenditure on women development table
2.5 Flagship Schemes to address Gender Disparity
CHAPTER 2
3.1 Criteria Of Women Empowerment
3.1.1 Economic
3.1.2 Social
3.1.3 Cultural
3.2 Need Of Microfinance
3.3 Microfinance Institution In Bihar
3.4 Schemes for Women and Child Development
CHAPTER 4 OBJECTIVES OF STUDY
CHAPTER 5 LITERATURE STUDY
CHAPTER 6 RESEARCH METHODOLOGY AND DESIGN

5
 CHAPTER 7 FINDINGS
Conclusion
Suggestion
Bibliography

Executive summary

Name of student: Kumari Komal Enrollment No. 19SEMF19

Degree for which submitted: MA School: Economics

Thesis title: Impact of Microfinance on Women’s Empowerment- A case study

of north Bihar.

Thesis supervisor: Dr. Raja Sethu Durai

Month and Year of submission: July 2021

Abstract

Microfinance refers to a provision of financial serviced generally given to poor people or

unemployed or women to raise their income levels or improve their standard of living and it

also plays an important role in creating job opportunities and removing the poverty. It refers

to the practice of providing financial services such as micro- Credit, micro savings or micro

insurance for alleviation of poverty level and to give loan to star their own business and enjoy

better housing, health care and education. Women empowerment means a strong power given

to women to do something in her life. Microfinance is important to overcome exploitation,

economic self- reliance and create confidence particularly among poor and rural women.

6
There are five important types of empowerment required for women a social empowerment,

education empowerment, economic and financial empowerment, psychological

empowerment and political empowerment. There isn’t any scale to measure the

empowerment of women but on the basis of experience, knowledge and behavior we can

analyze it but measurement of empowerment is paramount due to its policy significance.

“Microfinance stands as one of the most promising and cost effective tool to fight against

global poverty”. In Bihar, self-help group was started in the year 1988 by Holy cross sister at

Tilhara village of Ichhak block (West Champaran). After sometime in the same year SHG

was formed by PRADAN in Hazaribagh unit. Early days of SHG Model it was not successful

but with an effort of banking and other governmental sector after providing funds to SHGs,

the model became more profitable in the developing states particularly Bihar. Later in 1993

RBI had a meeting in Patna secretariat on micro credit and subsidy related to it, and due to its

successful result, banks started giving loans to SHGs without any guarantee for the first time

in Bihar. Bank of Maharashtra and Canara Bank were the first two banks to provide loans to

SHGs. After 1993 there was pressure on some other nationalized banks so they allowed for

opening the account and lending loans to the group of Bihar.

On the basis of primary and secondary data analysis, this paper attempts to highlight role of

microfinance and SHGs in empowerment of Bihar women. There are also some programmes

and schemes introduced by government to help rural poor women and marginalized section

of society to come out from poverty.

7
 Chapter-1

Introduction

The word microfinance consists of two words micro and finance which represent small credit.

It is stipulation of an extensive range of financial services such as- deposits, payment, loans,

money transfers as well as insurance products-to the marginalized strata, poor and low-

income households, to facilitate them for upliftment. Microfinance programmes not only give

women and men access to saving and credit, but it tries to reach millions of people worldwide

for bringing them together in the organized groups. Microcredit has been defined by the

microcredit summit held in Washington D.C. in February 1997 as "programmes that offer

credit for self-employment, additional financial and business services to very poor persons."

NIDAN was the first microfinance institution which was introduced in Bihar, which followed

the SHG and cooperative models of microfinance in Bihar. NIDAN was started as an

informal group for providing funds to women and also the young men by giving proper

training and development facilities for the purpose of making them financially independent.

NIDAN was registered under societies Act 1995 and its started its operation in five districts

of Bihar which are Patna, Vaishali, Katihar, Muzaffarpur and Samastipur. NIDAN started

giving loans mostly to the women population by 1996.

But its root appeared in 1970s, when organization such as Grameen Bank of Bangladesh

with microfinance pioneer Mohammad Yunus who was an Economics professor. He

observed that banking system was not fulfilling the requirement of public. The effort to fight

8
from poverty, wasn’t achieving its aim, banking system was incapable in providing for these

population. So, Mr. Mohammad Yunus provided a loan to 42 rural women and from there the

term Microfinance originated. NGO have played a huge and an important role in promoting

microfinance by partnering actors of microfinance.

1983-Existence of Grameen Bank.

1989-First microfinance loan issued to MFIs.

2006-Creation of microfinance department.

2012- Integration of microfinance into group’s CSR activity.

9
Meaning of Microfinance

Microfinance is the banking services that is provided to unemployed or low income

Individuals who have no access to financial services. These services include micro-savings,

10
micro-credits and micro-insurance. As we know that micro credit is the synonym of

microfinance.

Objectives: - The main objectives of microfinance services is to generate self- employment

opportunity for the poor people. Some more objectives areas-

1. To promote socio- economic development at grass root level.

2. Development and strengthen SHGs.

3. Empower the mainstream women.

4. Provide livelihood training to weaker section.

5. It gives protection against risk.

6. To provide different facilities as savings, insurance and many transfers.

7. Building assets by financing.

8. Contribution in transformation of rural.

Features of Microfinance

Microfinance is an instrument generally using by poor women for the empowerment purpose.

Microloan is given under microfinances.

There is transparency in the procedure.

 Borrowers belong to small income group.

 Punctual repayment.

 Loans are accessible without collateral.

 High frequency of refund and small the refund period.

 Loans are generally uses for income generation purpose.

 Loans are provided to them who lie below the poverty line.

11
  Generally, clients of microfinance are landless laborers, small and

marginal farmers and women.

 There is also not ceiling from the RBI in respect of minimum and

maximum amounts.

Role of microfinance

 Saving and loan tracking

 Financial accounting

 Producer configuration

 Security.

Definition by different Economist

 Robinson (1996) defined microfinance as small size financial services

presented to the people who work in agriculture, fishing and herding; who

activate small or micro enterprises who present services; who effort for wages

or commission and further individuals and groups at the local levels of

mounting countries both rural and urban. Financial services habitually consist

of credit and savings; and could facilitate the poor to influence their initiative,

accelerating the development of building incomes, assets and economic safety.

 Microfinance can be defined ―as the stipulation of extensive collection of

financial services to low-income clients, poor households equally in urban and

rural areas who are normally not bankable - (Debadutta Kumar Panda,2009).

 According to CGAP, Microfinance can be defined as the provider of loans,

savings and further basic financial services to the poor.

12
  According to ACCION, microfinance is defined as ―Banking and /or other

financial services targeted to low and reasonable income businesses or

households, together with the provision of credit.

 NABARD has defined microfinance as "provision of thrift, credit and other

financial services and products of especially small amounts to the poor in

rural, semi-urban and urban offered to customers to meet up their financial

requirements; with only qualification that

1. transactions value is small and

2. customers are poor.

Benefits of Microfinance

 Saving of some finances for the poor people.

 Access the necessary amount of finances to the poor through the credit.

 Opening of the new market for the financial intermediaries.

 For the new comprehension of subsidy –less and corruption less credit.

 Particularly the empowerment of poor women.

distinction between microfinance and microcredit

S.No. Characteristics of loan Microfinance Microcredit

1. Size of loan Small Small

2. Repayment of period Short Short

13
3. Sources of mobilization Both external and External

internal

4. Repayment Obligation if source Definite

external obligation

to repay

5. Collateral Not needed May or may not be

needed

6. Purpose of use Flexible, consumption Mostly fixed, limited

income generation scope for deviation

7. Scope of operation Mostly group loans Usually individual

trickling down to loans, though group

individuals loans might be given

: Comparison of Micro Finance and Formal Banking

s.no Characteristics Micro-finance Formal Banking

range of loan Small/tint size of credit Medium/large credit

period of loan Short period Medium/large period

3 Focal point on loan only

14
 Thrift Highlighting on thrift as well as

loan

4 Group development and Formal procedures

Enforcement of informal schemes

repayment

Examine difficulty and weekly

repayment
Collateral and legal difficulty for

repayment

Nature of Social organization form

organization Commercial organization form

Motivation Self-help motivated Profit motivated

Outreach Access to poor without Access limited

collateral (all

members)

15
 Chapter-2

Women Empowerment

16
 women Empowerment means she should be confident, courageous and self –

assertive to make decision everywhere. Empowerment of women was one of

the primary objectives of the Ninth five-year plan (1997-2002) and efforts

were to create free environment for women to exercise their equal right and

can be equal partner as men(NABARD,2000).

17
  . world bank defines empowerment as “the process of increasing the capacity

of Individuals or groups to make choices and to transform them into desired

actions and outcomes”.

. Governments, donors and NGOs and most of the microfinance focus

on women as they have less credit risk. Microfinance play an important

role in many gender and enlargements strategies to get the result of

poverty alleviation and empowerment of women. Empowerment can

be obtaining by enhancing their awareness, knowledge, skills and

technology utilize competence. Impact of microfinance on women

empowerment varies from place to place due to Demographic and

socioeconomic difference most of the programmes focus on women

because they are more credit constrained, have limited access to the

wage labor market, have negligible power in household decision

making and have higher records of loan repayment loans rates than that

of men. The population of female in Bihar is far more than that of men

but the unemployment rate of women is higher.

MFIs plays various important roles to accelerate socio-economic development of any

country. some of them are –

 by offering microloans to fill the gap within the financial services Industry to those

who are unable to access convention loan services.

 Help in reducing the poverty, unemployment rate and gender inequality.

Gender Development index(GDI), Gender empowerment Measure(GEM), Qualitative

surveys, Ethnographic Investigations, Focus group discussion and case studies these are

some key methods that researcher should use to measure empowerment.

18
 Now this time, the concept of women empowerment has undergone considerable

change from welfare orientation to equity approach.so it is now a global phenomenon.

The process of empowerment varies from person to person, culture to culture and

country to country. Women constitute a major part of the population in the society

and they face many challenges and obstacles that restrict their ability to play a

significant role in the family, communities and governance. Traditionally, social,

political, cultural and economic barriers restrict women to access education and

financial services which constraint their overall empowerment process. Generally, in

our society, women need extraordinary consideration for empowerment and an active

participation in the decision making process. In many economies, female participation

is negligible as it is 2:10 ratio. Women are generally marginalized, poor and socially

excludable in our society.

Empowered women and girls have truly transformative role in their families and societies.

Educated, empowered and employed women play very crucial role in breaking the poverty

cycle not only for themselves but also for their families, societies and nation too. It is the

process by which powerless women get greater control over their circumstances. The

constitution of India not only grants equality to women but it also empowers but it also

empowers the state to adopt measures of positive discrimination in the favor of women.

Under eighth plan the empowerment of women was first recognized as the social distinct

goal. Later in twelfth plan, it is identified as the key indicators for gender equity through

economic, social and cultural empowerment.

 Consistency of empowerment

19
20
Self Help Groups

21
SHGs model have four position pillars of “self-help is the best help”, “Unity is strength”,

United we stands and divided we fall” and the last one as conclusion “we can make our own

bank”. MFIs is regarded as the bank for poor. Under microfinance poor people get loan

without collateral or a steady income provided to them for business purpose. Self Help

Groups emerged as a component of the national financial System after 1996. NABARD is the

pioneering agency of SHGs –Bank linkage model.

COVID-19 Initiative Take by SHGs:

COVID-19 has adversely affected the lives of everyone from previous year, but it impacted

more to the poor and quite severely live. There is loss of livelihood, lack of food, shelter,

medicines and also there is no access to other basic needs.so, during this difficult times,

several services oriented Individuals, SHGs, voluntary agency and NGOs took steps and

came forward and extended their contribution in association with the Government

Departments, NABARD and others.

SHGs and their members across the country played a major role in coping with the situation

and took the responsibility of providing basic necessities to the poor and vulnerable sections

22
of the society. A few of the initiatives undertaken in various villages, districts and states for

combating COVID-19 pandemic situation and adopting the changing environment as-

 Mask making and Distribution: -

More than 100 of SHGs were involved in making and supplying lakhs of masks

within a very short span of time. One SHGs of East Champaran district has prepared

about 80 thousand masks and DAY-NRLM.

: Formation and functioning of SHG alliances

Source: Beyond Microcredit: Building Nested Institutions of Savings and Credit

Groups in India- The Kalanjiam Experience, Research paper by K. Narender presented

at Microcredit Summit, 10-13 November, 2002 at New York, USA.

Objectives of Self -Help Groups:

23
 1. For the empowerment process of rural and marginalized women.

2. For enhancing the confidence and capabilities of women.

3. For Developing the collective decision making among women.

4. To encourage the saving and investment plan among women.

5. To facilitate the accumulation of their own capital as resource base.

6. For improving the habit of economic Development.

7. To resolve conflicts through collective leadership and mutual discussion.

8. To provide collateral free loans with terms and conditions decided by the group at

market driven rate, etc.

Bihar has been making the various efforts to women in the recent years. The state

government has prepared the Women Empowerment policy in 2015 and promoted the Centre

(Gender Resource Centre) looking for the gender related issues. Under the Department of

social welfare, this Centre is a part of the Women Development Corporation, under the

Department of Social Welfare.

Table 1;- Gender Budget Summary (2014-15 to 2018-19)

(Amount in Rs. crore)

24
 2018-19
Details 2014-15 2015-16 2016-17 2017-18
BE
Category I

schemes for
3920.10 2996.10 5564.80 8545.90 9287.99
Women (100%

beneficiaries)
Category II

schemes for
8658.30 8130.90 9512.20 12069.50 16285.80
Women (30%

beneficiaries)
Total outlays for 12578.30 11127.00 15077.00 20615.40 25573.79

women
Total Outlays for

related 33703.70 31010.80 36411.50 46658.80 60559.08

Departments
Outlays for

women as a

percent of total 37.20 35.90 41.40 44.20 42.23

outlays of related

Departments
Total size of the 116886.00 120685.00 144696.00 160086.00 176990.27
Source:
State budget
Department
Share of outlays in
of Finance,
the State budget 10.80 9.20 10.40 12.90 14.45
GoB
(percent)
GSDP 342951.00 369469.00 425888.00 487628.00 515634.00
Outlays for women
25
as percent of 3.70 3.00 3.50 4.20 4.96

GSDP
 Explanation of table -1

An Overview of the gender budget for 2014-15 to 2018-19 is presented in table 1.On the

basis of the table it is evident that total outlays for women development has increased over

the years., except in 2015-16. The share of the outlays for women in total state budget has

been about 11 percent, with some year to year variation. Correspondingly, outlays for women

as percentage of GSDP have been around 3-4 percent. Gender budgeting analyses various

economic policies from the gender perspective

Table 2: Overview of Expenditure on Women Development (2017-18)

(Rs. crore)

2017-18 (Actuals) 2017-18

(Percent)

Departments Under Under Under Under

Category I Category II Total Category Category Total

I II
1917.3 13.7
Social Welfare 520.37 1396.94 16.93 12.84
1 4
SC and ST welfare 0.00 250.30 250.30 0.00 2.30 1.79
Public Health
0.00 566.84 566.84 0.00 5.21 4.06
Engineering
Minority Welfare 0.00 89.48 89.48 0.00 0.82 0.64
Education 5913.9 42.3
572.66 5341.30 18.64 49.10
Department 6 9
1369.4
Health 454.99 914.49 14.81 8.41 9.82
8
Rural Development 1458.6 1004.73 2463.3 47.47 9.24 17.6
26
 4 7 6
Urban Development and
0.00 38.09 38.09 0.00 0.35 0.27
Housing
Panchayati Raj 0.00 200.05 200.05 0.00 1.84 1.43
Labor Resource 6.15 0.00 6.15 0.20 0.00 0.04
BC and EBC
11.06 342.79 353.84 0.36 3.15 2.54
Welfare
Revenue and Land
2.59 0.00 2.59 0.08 0.00 0.02
Reforms
Art, Culture and
0.00 11.25 11.25 0.00 0.10 0.08
Youth
Industry 0.00 131.22 131.22 0.00 1.21 0.94
Agriculture 0.00 375.35 375.35 0.00 3.45 2.69
Science &
46.53 0.00 46.53 1.51 0.00 0.33
Technology
Building
0.00 153.53 153.53 0.00 1.41 1.10
Construction
Home 0.00 41.04 41.04 0.00 0.38 0.29
Tourism 0.00 21.15 21.15 0.00 0.19 0.15
3072.9 13951.5 100.0
Total 10878.52 100.00 100.00
9 1 0
Source: Department of Finance, GoB

Explanation of table 2

Now we will see table 2 which represents the data for gender budget items under different

departments of 2017-18. Category Ⅰ schemes are provisioned entirely for women. Next one,

category is gender neutral, for such schemes, it is assumed that 30% of the allocation is for

women beneficiaries. The table shows actual expenditure for 2017-18. After analyzing this

27
data, we will see that out of overall expenditure, the expenditure for category schemes was

22% and, for category it was 78%.

Table 3: Flagship Schemes to Address Gender Disparity (2014-15 to 2018-19)

(Rs. crore)

Scheme 2014-15 2015-16 2016-17 2017-18 2018-19

Lakshmi Bai Social

Security 32.51 357.48 213.86 260.47 281.83

Pension Scheme
Mukhyamantri Nari

Shakti 0.00 11.2 24.6 61.52 66.17

Yojana
Mukhyamantri

Kanya Vivah 143.54 26.85 21.59 38.16 46.51

Yojana
Mukhyamantri

Kanya — — — — 96.72

Utthan Yojana
Total 266.05 395.53 266.2 436.42 491.23
Source: Department of social welfare, GoB

Explanation of table-3

The state Government has taken some intervention to address the gender disparity under two

main heads: -Child protection (Kanya Utthan Yojana to stop female feticide) and the other

one is Social and Economic Security (Laxmibai Social Security Pension Scheme,

Mukhyamantri Kanya Vivah Yojana and Mukhyamantri Nari Shakti Yojana). The

Mukhyamantri Nari Shakti Yojana (MNSY) was launched in 2007-08 with an objective to

empower women and make them self-reliant. The schemes included many setting up

28
Helpline services, short stay homes, working women hostels and protective homes. The

Mukhyamantri Kanya Vivah Yojana extends financial support of Rs 5000 to girls of BPL

families who get married at the age of 18 years and above. The expenditure on these flagship

schemes has gradually increased between 2014-15 and 2018-19 by 84.6 percent.

The empowerment of women can be evaluated by these Criteria-Economic empowerment,

social and cultural empowerment. Some of the steps taken by state government as

1. Economic empowerment: - It access to employability, contribution to family income and

an involvement in family economic decision making.

 Project Implementation unit: -To complete the idea of social, economic and cultural

empowerment in Bihar, women development corporation has set up a project

implementation unit (PIU) to implement the social and economic empowerment

schemes.

 Bihar rural livelihood promotion Society (BRLPS): -To achieve the objective of

social and economic empowerment of rural poor, particularly women, BRLPS is

implementing various interventions since its inception.

 Micro- insurance: -The target of 100 percent enrolment under Pradhan Mantri Jeevan

Jyoti Bima Yojana (PMSBY) was achieved in 38 districts by the insurance team. IN

the year 2018-19,12.87 lakh SHG member were enrolled in the same year,1083

claims were registered, of which 77 percent were settled worth Rs.10.14 crore.

 Digital financing: - Digital financing inclusion of women has been achieved by

jeevika, working hand in hand with Vodafone, Airtel, Basix and SIDBI. This has

improved the digital financial literacy. The intervention started with two blocks (Bihta

29
 and Maner) in Patna. After sometime, digital financial Inclusion was extended to 165

blocks of 25 districts.

 Key Livelihood Intervention: -Under this intervention,6.28 lakh households were

engaged in kitchen garden and 3.12 lakh in vegetable cultivation to improve income

and nutritional status of the households.

 Community based custom hiring carriers: -Under the scheme a revenue of Rs.9.87

lakh was generated by providing services to 4212 farmers by providing them the

agricultural implements procured by custom hiring carriers.

 Integrated goat and sheep development scheme: -under this scheme, JEEVIKA, in

association with the Department of animal husbandry and fisheries, has distributed

10209 goats through 96 producer groups to 3434 households in 7 districts in 2018-19.

 Mini-Indoor Saras Mela: With the theme of ‘Unnat Mahila Ujjwal Bihar’, mini-

indoor Saras Mela was organized at the multi-purpose hall of Gyan Bhawan (Patna) in

September, 2018 and a total sale of Rs. 1.25 crore was made there.

 Aarakshit Rozgar Mahilaon Ka Adhikar: Under the Saat Nishchay programme,

‘Aarakshit Rozgar Mahilaon Ka Adhikar’ is one of the commitments of the State

Government. Since 2016, 35 percent reservation is being given to women for

recruitment in all services of the State Government.

2. Social Empowerment: - It includes the factor like freedom of movement, taking

own decision in household and work place, Taking decision against an exploitation

in the society, positive attitudes towards education of the family members, etc.

 Mukhyamantri Kosi Mulberry Pariyojna: The scheme is being jointly

implemented by the Department of Industry, MGNREGA wing of the Department of

Rural Development, Rashtriya Krishi Vikash Yojana (under Department of

30
 Agriculture) and Jeevika in 8 districts (Saharsa, Supaul, Madhepura, Purnea, Araria,

Kisangani, Katihar and Bhagalpur). The aim of scheme to support Bhagalpur Silk

Cluster and provide income generating options to marginal farmers in these districts.

In 2018-19, construction of 639 rearing houses was completed and 63 mulberry

farmers were trained at Keshla (Madhya Pradesh) on sericulture. During the same

year, 31 quintal of cocoon was produced and sold in the market and 15 new nodal

centres were established.

 Behavior Change Communication (BCC): This module was started to promote

awareness about right practices in health, nutrition and sanitation. Altogether, till

September 2019, a total of 3.19 lakh SHGs received training on topics of Health,

Nutrition and Sanitation.

Table 4: Number of Cases Registered and Disposed under Social Empowerment (2017-

18 to 2019-20).

31
 2017-18 2018-19 2019-20 (upto Sep-19)
Types of Cases
Registered Disposed Registered Disposed Registered Disposed
Domestic 4021 4113 3985 4418 2011 1726 (85.8)

Violence (102.3) (110.9)

Dowry Abused 815 698 727 772 367 314 (85.6)

(85.6) (106.2)
Dowry Death 3 3 2 6 3 3 (100.0)

(100.0 (300.0

) )
Second 107 99 117 152 43 34 (79.1)

Marriage (92.5) (129.9)

Rape & 3 3 12 6 (50.0) 8 10 (125.0)

Trafficking (100.0

Case )
Sexual Abuse at

Other 95 87 90 121 43

Places (91.6) (134.4) 41 (95.3)

Sexual

Harassment
7 19
at 16 29 16 11 (68.8)
(43.8) (65.5)
Workplace

Cases
Mobile and 0 0 4 2 (50.0) 2 1 (50.0)

Social-Media
Others 1357 1444 1268 1564 627 544 (86.8)

(106.4) (123.3)
Total 6417 6454 6234 7060 3120 2684 (86.0)

(100.6) (113.2)
32
Note: Figures in parentheses denote the percentage of cases disposed. In some cases,

disposed cases are carried over from the previous years, due to which cases disposed

are higher than registered.

Source: Bihar State Women Development Corporation, GoB

In the given table 4 we see that, to safeguard the offences against women, Women

Development Corporation (WDC)has started the Mahila helpline cum one-stop Centre. There

are many cases registered against women and they are disposed by counselling and incase of

court cases. Through the table we see that there has been decrease in number of cases

registered and disposed of relating to offences against women. The proportion of cases

registered for women offences was very high. Relatively all the registered cases, the

registration is highest for domestic violence. It is interesting to know that, more than 100% of

cases relating to domestic violence were disposed of in 2017-18 and 2018-19.

3. Cultural Empowerment: -

 Meena Manch: - Meena Manch is a group of 20 girls, which includes 15 girls from

upper primary school and the rest 5 dropout girls who have completed at least class Ⅴ

education.

 Shilpgram Mahila Producer Company Ltd.: The company has been registered at

zonal level covering all nearby districts. The company has started its business from

October, 2018 and has made sales of Rs. 35.00 lakh till September, 2019.

 Didi Ki Rasoi: Under this initiative, the canteens of Sadar hospitals are being run by

Jeevika SHG members and Village Organizations (VO) as the nodal agency. In 2018-

19, three canteens were inaugurated at Sadar Hospitals at Buxar, Sheikhpura and

Vaishali. The canteens provide food service to indoor patients as well as visitors. The

33
 total sale of three canteens was of Rs. 14.50 lakh. Till September 2019, twelve Didi

Ki Rasoi have been started.

NEED OF MICROFINANCE

Women are becoming self-reliant, they think for well-being of their families, play an extra

enthuastic and energetic role in decision making and enough talented to tackle organized

gender inequalities. microfinance and self-help group must be use to see that SHGs don’t

charge high interest rate from their beneficiary and recover entrance to those who can’t sign

by them utilize through thumb impression. The motto of financial inclusion stands for

achieving the socio-economic justice in real sense. only banking and other financial

Institution are not being sufficient for serving the financial needs of people’s demand. Need

of supplementary financial mechanism become obvious as

 The credit flow of banks and related institutions follow cumbersome mechanism

which becomes more difficult for illiterate farmers.

 As we know that the fact Mahajan’s and money lenders in rural areas have crippled

the rural economy as innocent borrowers never end of this mesh.

 Cooperative ideas of government couldn’t achieve the target it envisioned.

 SHGs have become the successful formulae in different states as it inhibits a sense of

responsibility, brotherhood along with the achievement of socio-economic goals.

PRSENT SITUATION OF MICROFINANCE IN BIHAR

34
As of march 2015 there were 77 lakh SHGs in India linked to the rural banking system with

their Saving Balance of nearly RS 11060 crore compared to RS 9900 crore in the previous

year. The total bank loan disbursed to these SHGs during 2014-2015 amounted to more than

RS 27580 crore. The SHG-BLP has to far been one of the most preferred and viable models

for financial inclusion for the unreached rural poor till now.

Bihar is a slower starter is gradually catching up with other states in both formations of SHGs

and to ensuring their bank linkages. As of march 2015 bank linked SHGs coverages in rural

Bihar was 29.2 lakh households down from 32.4 lakh a year before. The average savings of

RS 13216 per SHGs in Bihar was still below the national average of 14368 but the gap has

considerably narrowed, compared to the last year. The average credit of RS 72 thousand per

SHG was far below the national average of RS 1.69 lakh. The total loans disbursed during

2014-15 to the SHGs by banks 277 amounted to RS 471 crore which was much higher than

RS 284 crore disbursed in the previous year. Their outstanding loans at the end of 2014-15

stood at Rs 1027 crore, higher than the corresponding figure one year earlier (Rs 898 crore).

The non-productive assets of SHGs in Bihar declined marginally from RS 71 crore in 2014 to

RS 70 crore in 2015.such nonproductive assets in 2015 constituted 6.9 percent of total

outstanding loans. NABARD has identified 16 districts in Bihar for promoting and financing

women SHGs through positioning an anchor NGO in each identified District.

PROBLEMS WITH MICROFINANCE IN BIHAR

Some major handicaps that exist in linking the SHGs to the bank include the absence of

reputed NGOs and the low awareness of the stakeholders about the benefits of SHG lending.

According to NABARD despite the unique characteristics of SHGs and their

accomplishments so far, several issues continue to affect the programme like inadequate

outreach in many regions, delays in opening of SHG accounts, delays in disbursement of

35
loans, impounding of savings by banks as collateral, non-approval of repeat loans even when

the first loans were rapid promptly, multiple membership, limited interface with bankers, and

monitoring. It is expected that initiatives taken by NABARD and other implementing banks

in organizing sensitization programmes shall result in a more favorable environment towards

the SHG movement in the state. The state level Bankers committee in Bihar had identified

certain factors that have contributed to the success of SHGs in other states and which are, by

and large, absent in BIHAR. These factors are- attitude of the rural people and their

education, availability of professionally run quality micro finance institutions, conducive

regulatory framework, government support and channelizing government assistance through

the SHGs .it will be necessary to remove the above constraints to ensure the spread of the

SHG movement in the state. The SHG-BLP was given a renewed thrust by NABARD with

the launch of SHG-2 to address some of these bottlenecks. All the SCBs, RRBs and CCBs are

the part of this renewed thrust. THE focus of this SHG-2 would be on voluntary saving, cash

credit as a preferred mode of lending, scope of multiple borrowings by SHG members in

keeping with the repayment capacities and avenues to meet higher credit requirements for

livelihood creation. The scheme will also promote SHG federation as non-financial

intermediary, audit and rating of SHGs as a part of risk mitigation system, and strengthening

the monitoring mechanisms.

MICROFINANCE INSTITUTIONS IN BIHAR

The MFIs access financial resources from Banks and other mainstream financial institutions

and provide financial and support services to the poor. India’s booming micro lending

Industry is a part of global phenomena which attracts private capital seeking growth as well.

The situation will be worst when someone id dependent on loan facility and the loan taker use

it without the payback period and the other terms and conditions. MFIs join hands with

NGOs which helps SHGs links to banks for providing funds.

36
There are 34 reporting microfinance Institutions working in Bihar in 38 districts and 4

MFIs have headquarters in Bihar as well. Some of them are mention below.

Sl No. Name Of MFIs Head office Year of Legal form

Establishment
1 Centre for promoting Patna, Bihar 2003 Society

Sustainable livelihood
2 Centre for development Patna, Bihar 2007 Society

orientation and training

(CDOT)
3 Mass care international Patna, Bihar 2005 society

4 Saija finance pvt. limited Patna, Bihar 2008 NBFC-MFI

5 Prayas Juvenile Aid Centre New Delhi 2007 Society

6 Satin Credit care Network New Delhi 1990 NBFC-MFI

limited
7 S V Credit line PVT. Gurgaon, 2010 NBFC-MFI

Limited Haryana
8 Nav Bharat jagriti Kendra Hazaribagh, 1993 Society

Jharkhand
9 Vedika Credit Capital Ranchi, 2007 NBFC-MFI

Limited Jharkhand
Source-www.sa-dhan.net

The structure of microfinance institutions consists of the following hierarchy: -

37
  Schemes for Women and Child Development:

The Ministry of Women and Child Development is the apex body for formulation and

administration of the rules and regulations and laws relating to women and child development

in India. The Ministry has six autonomous organizations which are working under its

guidance.

 National Institute of Public Co-operation and Child Development (NIPCCD)

 National Commission for Women (NCW)

 National Commission for Protection and Child Rights (NCPCR)

 Central Adoption Resource Agency (CARA)

 Central Social Welfare Board (CSWB)

 Rashtriya Mahila Kosh (RMK)

These are the organizations which works for the women and child development and it is

controlled by the Ministry of Women and Child Development.

Different schemes are being implemented for an inclusive development of women under the

following strategy: -

 Development and strengthening of policy level and legal structure.

 Education and organization of the community and society.

 Enhancing girls access to formal schools and quality of those schools.

38
  Provision of opportunities of economic support, encouragement and employment of

girls and women.

 Ensuring self-reliance through awareness, training, skills and organization.

 50% reservation of women in Panchayati Raj institutions for providing equal rights,

equal social status and equal opportunities to women.

 50% reservation has been provided to women in primary school teaching to ensure

equal employment opportunities to them.

Schemes for Women Empowerment:

Women are the most important part of every society serving different roles such as mother,

wife, sister friend, daughter etc. In the past few years, the government has launched many

schemes for the development of women. Followings are the schemes for the empowerment of

women:

 Beti Bachao Beti Padhao Scheme (BBBP): This scheme was launched on 22nd

January, 2015. This scheme was firstly commenced to address the issue of

declining child sex ratio. This scheme is jointly executed by Ministry of Women

and Child Development, Ministry of Health and Family Welfare and Ministry of

Human Resource Development through a national campaign. This scheme is

focused in 100 selected districts which have low Child Sex Ratio and it covers all

the States and Union Territories.

 Mukhyamantri Balika Poshak Yojana: It has been started with a view to attract

girls and their parents towards school. A fixed amount is provided to the girls

studying regularly in classes 1-8 to purchase school uniforms. Bihar shatabdi

Mukhyamantri Balika Poshak Yojana provides the fixed amount for girls studying

in class 9-12 in government school or colleges from the year 2011-12 onwards.

39
 Mukhyamantri Balika Cycle Yojana:-

it has been started in the year in year 2007 to facilitate the regular study of such

girls. Under this scheme one-time financial aid is given to the girls studying in

standard 9. The Scheme has benefitted a total of 40 lac school girls so far.

 Mukhyamantri Balika Protsahan Yojana aims at providing an incentive amount of

Rs10000 to the girls securing first division in matriculation examination. Ratio of

boys and girls appeared in the examination of standard 10 was 67:33 in the year

2005 which now rose to 56:44 as a result of the state government’s effort for

ensuring better educational status of girls.

40
  Implementation of Mukhyamantri Akshar Anchal Yojana (from 2009-2010) made

more than 33 lac women literate, 20% decadal increase in women literacy was

recorded in the census 2011. This achievement led our state to receive national

level award.

 Mahadalit, Alpsankhayak, and extremely backward class Akshar Anchal Yojana has

been started in the year 2013. This has been benefitted 9.69 lac women at 26126 centres.

 Bihar witnessed the maximum increase in women’s literacy and literacy among SCs/STs

in the entire nation during the decade of 2001-2011.The achievement led our state to

receive national level award.

 Thousands of girls belonging to minoritybgroups have been given vocational training of

20 different trades under ‘HUNAR’ program. They have been also provided withtool-

kits under ‘AUZAR’ programme for supporting them to begin self employment and to

gain self reiance.

 Remarkable achievement has been recorded in institutional deliveries under’ janani bal

suraksha yojana” . Health protectin was provided tp pregnant women and nursuing

mothers through trained health workers like ASHA and MAMTA .health department

observed 2011 as safe motherhood year as a step towards women’s empowerment

.Only4% wome used to visit hospitals for institutionl delivery in the year 2006-07. The

percent now rose to 55. The infant mortality rate of state was 61 per thousand births in

the year 2005 which has now reduced to 42 per thousand births at present.

 One Stop Centre Scheme (OSCs): The main objective of launching this

scheme is to provide support and assistance to women who are affected by

violence in public and private spaces. Through this scheme, the women who

are facing physical, sexual, emotional, psychological and economic,

41
 irrespective of age, caste, religion, culture, class will be supported. One Stop

Centre Scheme provides specialized services to women who face any kind of

violence due to sexual harassment, sexual assault, domestic violence,

trafficking and acid attacks.

 Support to Training and Employment Programme (STEP): This

programme was launched in 1987 by the central government. This scheme is

totally central funded scheme. This programme provides skill and new

knowledge to poor and women to get employment. The main aim of this

programme to make a significant impact on women by upgrading skills. The

target group includes the marginalized section of society i.e. urban poor

people and rural women.

 Swa-Shakti: This programme was launched in October, 1999 and finished on

30th June, 2005. This project was jointly funded by World Bank, IFAD and

Government of India. This was totally central funded project. The main aim of

this programme was to take out socio-economic development and women

empowerment through SHGs, income generating activities and micro credit.

This project was implemented in 335 blocks of 57 districts in 9 states.

 Swayam siddha: This scheme was launched in February, 2001 and ended in

March, 2007. This was totally central funded scheme. This scheme was

executed in 650 blocks of the country and 67971 SHGs were formed to give

benefit of 989485 women beneficiaries. This was an integrated scheme for

women empowerment through formation of SHGs.

 National Mission for Empowerment of Women (NMEW): This scheme

was launched on August 15, 2011 by government of India. It is an initiative

taken by government of India for empowering women holistically. The main

42
 objective of this program is to strengthen the conceptual and programmatic

basis of women-centric schemes implemented. Training & Capacity Building

to enhance and strengthen understanding of gender issues, build a Resource

Pool at the National and State level of bridge gaps between knowledge and

practice will be the other focus area of National Mission for Empowerment of

Women.

 SWADHAR: - This scheme beginning year is 1995.and its objectives were to

support the women to become independent in spirit, in thought, in action, and

have full control over their lives rather than be the victim of other’s action.

 Ujjwala: -; This scheme started in 2007.it is a comprehensive scheme for

prevention of trafficking with five specific components such as prevention,

rescue, rehabilitation, reintegration and repatriation of victims.

 DHAN LAXMI; This scheme started in 2008.which objective was the

conditional cash transfer for the girl child to encourage families to educate girl

children and to prevent child marriage.

 Indira Gandhi Matritva sahyog Yojana (IGMSY); This scheme has been

started in 2010. For improving the health and nutrition status of pregnant,

lactating women and infants.

 Rajiv Gandhi scheme for empowerment of adolescent girls (RGSEAG)-

SABLA: -This scheme has been started in 2010. its aim is empowering

adolescent girls of 11-18 years by improving their nutritional and health status,

upgradation of home skills, life skills and vocational skills. This scheme is

being implemented in 12 districts Patna, Buxar, Gaya, Aurangabad, Sitamarhi,

West Champaran, Saharsa, kishanganj, Katihar, Banka, Vaishali and Munger.

43
 A total of 176 child development projects are operating currently(year2011)

covering a total of 30858 Anganwadi centers.

 some services are mention here which is provided under this

scheme.

 Nutrition provision (600 calories,18-20 gram of protein and micro nutrients for

300 days.

 IFA supplementation.

 Health checkup and referral services.

 Education in nutrition and health.

 Counselling and guidance on family welfare, adolescent reproductive and sexual

health.

 Education in life skills and on accessing public services and

 Vocational training for girls aged 16 and above under national skill development

programme.

 Indira Gandhi Matritva sahyog Yojana (IGMSY); it was introduced by

the Ministry of women and Child development for pregnant and

lactating women, aiming to partly compensate them for wage loss

during child birth and child care and also provide conditions for

ensuring safe delivery and promote good nutrition.in financial year

2010-11 government of India disbursed Rs 98353 lakh to implement

the scheme in the state.

It envisions the achievement of these objectives by; -

 Promoting appropriate practices, care, institutional services

utilization during pregnancy, delivery and lactation.

44
  IGMSY is a centrally sponsored scheme under which financial

assistance is provided as grant in aid to the state government.

 Mukhyamantri Kanya suraksha Yojana: the major objectives of this

scheme are to prevent female feticides, to encourage birth registration.

Benefits under this scheme are provided to those girls of BPL families

who were born after November 22, 2007.Benefits are given only for

two girls per family. Under this scheme, an amount of Rs 2000 is

invested in child carrier balanced plan of UTI mutual fund in the name

of girl. For the financial yr. 2011-12 the target was to benefit 500000

beneficiaries with a total budget of Rs 1000000000.so far an amount of

Rs 400000000 has been distributed and request to provide remaining

amount has been sent to the department.

 Mukhyamantri Nari Shakti Yojana; -

Under Mukhyamantri Nari Shakti Yojana, free socio -psychological

support and legal aid are provided to the victims of domestic violence and

trafficked women and adolescents. The Women Development Corporation

(WDC) is running 38 Women Help Lines in different districts, in close

coordination with respective District Magistrates. In 2018-19, against the

budget outlay of Rs. 6617.75 lakh, the expenditure was almost 100

percent. In 2019-20, Rs. 31.98 crore was allotted for the scheme.

Economic Empowerment; -- Under this Yojana 34260 SHGs have been

formed and nurtured in 27 districts under which 430 lakh women of poor

family are being benefitted. Total 165 blocks ,1520 panchayats and 5905

villages have been covered under this program. Total Rs 38967 lakh has

been deposited by the self-help group members through small savings

45
 with the revival of handloom/handicraft trade in the Biharsharif block of

Nalanda district, local weaver’s community has been motivated for

sustainable livelihood.

 The “BawanButti” art of handicraft has been revived.

 Women of Phulwarisharif in Patna district are successfully

running the sanitary napkin production units under the brand

name ‘bharti’.

 Mahadalit women in Maner block in Patna district have started

a spice unit as b business enterprises.

 For the purpose of mobilize the primitive community Tharu in

the mainstream of development process,300SHGs are in

process of formation and nurture in East Champaran district.

Social Empowerment: -29 short stay homes are got functional out of 38

proposed and in process of establishment .in June 2011 total 174 inmates

came at these SSH. Out of 73 get rehabilitated and 101 inmates are

currently living at SSH.

 Collaboration with jagran pahel for exhibition cum gender fair at

15 colleges in five districts of Bihar under ‘Sapno Ko Chali

Choone Program’ which is aimed at environment building and

sensitization on gender issue among adolescent girls and boys of

state colleges.

Mukhyamantri Kanya Vivah Yojana: To stop child marriage and encourage her

higher education, Mukhyamantri Kanya Vivah Yojana provides financial assistance of

Rs. 5000 to the family of the girl child at the time of her marriage. The benefit of this

scheme is given to those girls whose marriage has been registered and whose family

46
 income is not more than Rs. 60,000 per annum. In 2018-19, the budget provision for

the scheme was of Rs. 4801.40 lakh, of which Rs. 4651.39 lakh was spent.

Mukhyamantri Kanya Utthan Yojana: The main objective of the scheme is to

prevent feticides and gender imbalance by promoting the birth of girl child. Under the

scheme, a sum of Rs. 2000 is given at the time of birth and Rs. 1000 on completion of

one year along with enrolment in Aadhar. For direct benefit transfer, the Aadhar will

be linked with mother/father/guardian’s bank account. This facility will be given two

girl child in each family. In 2018-19, against the budget outlay of Rs. 9672.18 lakh,

the expenditure was almost 100 percent.

Bihar state women empowerment policy 2015 has been approved and adopted in

March 2015 for social economic, political and cultural advancement of the women

and to bring them in national mainstream of development. The policy strives for

eliminating gender-based discrimination caste and structural hindrances restricting

women’s access to social, economic, political, educational and health related

resources.it will also ensure women’s judicious access to resources and creation of a

conducive environment.

Contribution of organization toward Microfinance

NABARD, Rashtriya Grameen Vikas Nidhi, Rashtriya Mahila Kosh, NGOs and

Microfinance Institutions are some major organisations that works towards the

providing the microfinance services in Bihar.NIDAN, Nirdesh, Cashpor these are

some organisations working towards the microfinance sector. Cooperative Banks,

Nationalized Commercial Banks and Regional Rural Bank is an important channel for

providing product and services for Microfinance. Some initiatives taken by NGOs like

47
 Cashpor, CPSL, NIDAN and ASA it also played an important role in the promotion of

Microfinance by making groups of people for aggregate development and growth.

Poverty alleviation programmes like- Integrated Rural development program (IRDP),

Jawahar Rozgar Yojana (JRY) and Pradhan Mantri Rozgar Yojana (PMRY) worked

for a long period of time but the result was not satisfactory.

Bihar Rural Livelihood Project (Jeevika): -Transforming lives, Transforming Rural Bihar

This is an autonomous body under the aegis of Rural Development Department of Bihar. The

Government of Bihar has initiated a project on rural livelihood promotion by the support of

World Bank. This initiative is implemented through a society registered with government of

Bihar by the name of Bihar Rural Livelihoods promotion society (BRLPS) Or Jeevika. It

aims to improve Rural Livelihood opportunity to work towards social and economic

empowerment of rural and marginalized section of the society particularly women. Its

objective was to provide opportunity for self-employment to skilled or semiskilled women in

48
the rural areas of Bihar. Jeevika now covers all the 38 districts of the state, with an aim to

improve the improve the social and Economic conditions through strong community,

financial Inclusion and livelihood programmes.

Family of Jeevika

 8.22 lakh Self Help Groups formed, 54753 village organisations

and 900 cluster level Federations.

 Covers almost 10 million households.

 More than 85,973 community professionals trained for

participation in development of SHGs.

Jeevika has achieved remarkable success in its core interventions and achieved rank 1st in the

country in terms of formation of SHGs, their federation and financial inclusion.

Policy level Interventions

 Inclusion of jeevika as a member of SLBC, DLCC and BLBC.

 Formation of a dedicated steering committee of SLBC on “SHG Financing and

financial Inclusion”.

 Approval from SLBC to make 1st dose of SHG Financing at Rs. 1.50 lakh and 2nd

dose at Rs. 3 lakhs.

Skilling and Placement Under Jeevika: -

 Jeevika has played an important role in livelihood promotion at the grass root level.

DDU-GKY, Roshni project and RSETIs these are some important initiatives

undertaken by the Jeevika.

 61 new training centres has been established in different districts of Bihar. Its aim was

to provide skill development to native and migrated youth. A total of 10800

candidates were trained, out of which 8547 were placed in different sectors during

year 2018-19.

49
 Table 5: Progress under Jeevika (2015-16 to 2018-19)

Item 2015-16 2016-17 2017-18 2018-19

Number of SHGs 470220 610808 790411 848896

formed
Number of VOs 31229 35681 46756 55628

formed
Number of CLFs 318 415 706 925

formed
Number of SHGs

Credit Linked with 221261 391314 587616 810426

Banks
Bank Credit Amount 1300 2993 5358 8169

(Rs. crore)
Source: Jeevika, Government of Bihar

From the Table 5 we conclude that till 2018-19, about 848896 SHGs were formed. The

SHGs have federation into 55628 village Organisations (VO) and 925 cluster- level

federation (CLF). The project has been able to leverage the bank credit of Rs 8169 crore

till 2018- 19. Jeevika is also responsible for the implementation of the Lohiya Swachcha

Bihar Abhiyan (LSBA) and SBM(G). Jeevika has achieved remarkable progress for this

programme by sanitation Intervention. The Rural household of Bihar has got approx.

96% access to toilet. A total of 1.13 crore IHHLs have been constructed across all the

districts. IN recent years Jeevika has received recognition at both national and

international forum for its Excellent achievement. It has achieved a Certificate of

Appreciation and Award for its outstanding performance in the category of “Farm

Livelihood Promotion” under DAY-NRLM for the year 2017-18. Smt. Rasuhan

50
Khatoon, a SHGs member from Muzaffarpur has received a National Entrepreneurship

Award for the best individual entrepreneur. The Rural Retail mart has established by

Jeevika to supply Grocery items to more than 650 grocery shops owned by Jeevika

SHGs member. This mart aims to provide best quality product at a reasonable price only

to SHG members.

Muzaffarpur, Gaya, Purniya, Nalanda and Madhubani these are the five best performer

of Jeevika in Bihar While Lakhisarai, Sheikhpura, Sheohar, Arwal and Kishanganj these

5 district have worst performance in Jeevika.

Table 6: Extent of Livelihood Related Activities by SHGs (March, 2019)

Progress

till
Interventions
March

2019
Farms Livelihoods
Number of farmers undertaking paddy cultivation

(Productivity 464126

Enhancement intervention)
Number of farmers who undertook wheat 517711

cultivation
Number of farmers who undertook vegetable 312626

cultivation
Number of farmers who undertook kitchen 559375

gardening
Off-farms and Non-farm Livelihoods
Number of SHG members involved in Poultry 182193

51
 intervention
Number of SHG members involved in Dairy 55482

intervention
Number of households involved in goat 58200

intervention
Number of SHG members involved in Non-farm 29422

interventions
Skill Training and Placement
Number of Rural Youths trained (PIAs & 215822

RSETIs)
Number of Rural Youths placed (PIAs, RSETIs, 254034

Job Fair etc)

Vulnerability Reduction
Number of Village Organizations received Food 23720

Security Fund
Number of Village Organizations received Health 37635

Security Fund
Sanitation
Number of Individual Household Latrines 1103179

(IHHL)constructed 3
Number of Villages declared ODF 27318
Source: Jeevika, Government of Bihar

Jeevika is also working for doorstep banking services to rural household involving

Banking Correspondent Agents of the Banks. Over 600 Banking corresponding Agents are

running Custom hiring centres and have done a transaction of over Rs.1243 crore. Jeevika

has been designated as a prominent agency for implementing the PMSBY and PMJJBY.

Over 5.5 Lakh SHG members have undertaken kitchen gardening and over 3.1 lakh SHG

members have gotten the production of large-scale vegetables. From the Table 6 we see the

detail of livelihood related activities up to March ,2019. In off-activities, approx. 1.8 lakh

SHG member were involved in Poultry, around 55 thousand were involved in diary, and 58

52
thousand in rearing of goats. Jeevika also trains rural youth and arranged a wide range of

jobs for them. Till march 2019, a total of 2.2 lakh youth were trained and 2.5 lakh were

placed/settled either by the project Implementation Agency (PIA), Or by Rural Self

Employment Training institutes (RSETIs).

Chart-1: Selected Gram Panchayat in Selected Districts for State Rural Livelihood

Mission

Source: Jeevika, Government of Bihar

From Chart -1, we conclude that, Jeevika focuses on community mobilization with

Gram Panchayats driving the implementation by local action plans. In Initial phase,

priority was given to all Ganga Gram panchayats and also additional activities like Tree

plantation and Environment safety has been also taken into consideration. Overall, 14

districts and 50 Gram Panchayat were selected for the State Rural Livelihood Mission

(SLRM).

53
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA)

It was implemented in 3 phases, starting with 200 districts in 2006 to cover the whole

country by 2008.This act was introduced with an aim to improve the purchasing power

of the rural people. It attempts to bridge the gap between the rich and poor in the country

It is mainly implemented by Gram Panchayats (GPs).in this scheme within 15 days of

submitting the application or from the work is demanded, and wage employment will be

provided to the applicant. Mahatma Gandhi National Rural Guarantee (MGNREGA)

Act, 2005 gives the Right to work for at least one member of a family for minimum 100

days (150 days for tribal) in a financial year, which aim was to enhance the employment

security in rural areas. In this an adult member of a family is applicable to become the

volunteer in unskilled or manual work.

 At least 33% of the beneficiaries should be women.

 It generally focuses on social and economic empowerment of women.

 MGNREGA provides “green” and “Decent” work.

54
  Social audit of MGNREGA works is mandatory, which lends to accountability

and transparency.

 The employment will be provided within a radius of 5 km, if it is above 5 km,

extra wage will be paid.

 The schemes were introduced in 200 districts during the financial year 2006-07.

In April 2008, NREGA expanded to entire rural area of the country covering the

34 states and Union Territories, 614 districts, 6096 Blocks and 2.65 lakhs Gram

Panchayat. The scheme covers 648 districts, 6849 Blocks and 250441 Gram

Panchayats in the financial year, 2015-16.

 Table A 8.1: District-wise Progress of MGNREGS (2016-17 to 2018-19) (FIG

IN LAKH)

Household getting 100

Person-days of Percentage share of
days of employment as
employment generated women in total
percentage of those
District
(lakh) employment generated
obtaining employment
2016- 2017- 2018- 2016- 2017- 2018- 2016- 2017- 2018-

17 18 19 17 18 19 17 18 19
Patna 0.9 0.1 1.1 24.3 17.4 28.2 48.6 47.6 52.0

W. 0.5 0.3 0.1 29.9 22 24.1 34.7 39.8 66.7

Champaran
E. 0.4 0.5 0.7 38.0 33.9 57 35.7 39.0 45.4

Champaran
Muzaffarpur 0.4 0.5 0.5 23.1 21.1 23.2 41.2 44.6 49.5
Sitamarhi 0.2 0.3 0.3 25.6 31.3 39.6 44.2 47.1 49.6
Sheohar 0.3 0 0.4 11.0 7.4 13.3 44.2 46.1 51.1
Vaishali 0.1 0.5 0.6 24.5 28.9 49.3 45.0 46.7 52.7

55
 Bihar 0.6 0.7 0.8 858.4 817.2 1234.1 43.8 46.6 51.8
Source: Department of Rural Development, GoB

The schemes help in achieving women empowerment and restriction over labor migration.

Chart : Number of Job Card Issued During 2015-2019

10
8.8
8
Job Card (Lakh)

5.9 7.01
6 6.4

0
2015-16 2016-17 2017-18 2018-19
Years

Source: Department of Rural Development, GoB

This chart is showing, the no. of the number of job cards issued to households during

2015-19. the highest number of job cards was issued in 2016-17(8.8 lakh, while the

lowest number of job cards was issued in 2017-18(5.9 lakh)., which again increased to

7.01 lakh in 2018-19.

56
 Chart 10 : Percent of Household Provided with Employment
20
18.9
18
15.7
Employment (Pecent)
15.2
16
14
12 11.2
10
8
6
4
2
0
2015-16 2016-17 2017-18 2018-19
Years

Source: Department of Rural Development, GoB

Table 10: Performance of MGNREGA (2014-15- to 2018-19)

Year 2014- 2015- 2016- 2017- 2018-

15 16 17 18 19
No. of households Job Cards 127.2 133.6 142.4 148.3 155.3

issued (lakh)
No. of households

provided with 10.4 14.9 22.3 22.5 29.2

employment (lakh)
No. of households obtaining 100
0.3 0.6 0.2 0.2 0.2
days of employment (lakh)
Employment generated (lakh 352 670.9 858.4 817.2 1234.1

person-days)
Percentage share of women in
37.3 40.8 43.8 46.6 51.8
total employment generated
Average employment per

household 34.0 45.1 37.4 36.4 42.2

(person-days)
Number of completed works 1.2 1.1 0.8 1.1 1.8

57
 (lakh)
Fund utilized (percentage) as per 65.7 81.6 89.9 91.0 90.0

MIS
No. of accounts opened (lakh) 29.4 34 39.2 66.9 72.8
Source: Department of Rural Development, GoB

We see that the number of households provided with the actual employment is an

important indicator of the performance of MGNREGS. This date is provided in table 10

and chart 10. From table 10, we can easily see that both the numbers of household with

job cards of households which had gained employment have increased consistently.

Between 2017-18 and 2018-19., the number of job cards issued increased from 148 lakhs

to 155 lakhs. In the same way, the number of households receiving the employment has

increased by about 32 percent from 22 lakhs in 2017-18 to 29 lakhs in 2018-19. In the

last three years we are seeing that, the number of households which obtained 100 days of

employment has also increased. The number of person days has increased three and half

times, from 352 lakhs in 2014-15 to 1234 lakh in 2018-19. In Bihar, the number of

women’s participation was higher than the statutory requirement of one- third of the total

person days created. during the last five years, the share of women increased as it stood

at 51.8 percent in 2018-19. It was lowest in 2014-15 (34.0man days) and the highest in

2015-16 (45.1 man-days). The primary reason for such low and fluctuating number of

days has been the drop- out of workers, without completing the 100 days of work. The

fund utilization was low in earlier years, but the increased to around 90 in 2017-18 and

2018-19.

58
 Source: Department of Rural Development, GoB

This chart shows that, the number of completed works under MGNREGS has recently

increased in Bihar. The total number of completed works under this scheme has

increased from 116.0 thousand in 2014 -15 to 183.3 thousand in 2018-19. Major

completed works was observed in 2016-17 at 76.9 thousand.

59
 Chart11: -total number of completed works under MGNREGS (2014-19)

200.0
180.0 183.3
160.0
140.0
Fig in thousand

116.0
120.0 110.5
108.5
100.0
80.0
76.9
60.0
40.0
20.0
0.0
2014-15 2015-16 2016-17 2017-18 2018-19
Year

Source: Department of Rural Development, GoB

Objective of The Study

Many studies have been conducted on the topic of microfinance but very few had given their

result in the North Bihar. So, this shows the uniqueness of the study.

Some important objectives of the study:

1. To identify the role of microfinance on the rural women empowerment of North Bihar.

60
2. To know the different policies, programmes and schemes for the empowerment of rural

women.

Literature Review

 Susy Cheston (2002) has examined that Microfinance has the potential to have a

powerful impact on women’s empowerment. Although microfinance is not always

empowering for all women, most women do experience some degree of

empowerment as a result. Empowerment is a complex process of change that is

experienced by all individuals somewhat differently. Women need, want, and profit

from credit and other financial services. Strengthening women’s financial base and

economic contribution to their families and communities plays a role in empowering

them.

 Cheston and Kuhn (2004) has examined that in their study concluded that micro-

finance programmes have been very successful in reaching women. This gives micro-

finance institutions an extraordinary opportunity to act intentionally to empower poor

women and to minimize the potentially negative impacts some women experiences.

 Linda Mayoux (Feb 2006) has examined that Micro-finance programmes not only

give women and men access to savings and credit, but reach millions of people

worldwide bringing them together regularly in organized groups. Through their

contribution to women’s ability to earn an income, micro-finance programmes can

potentially initiate a series of ‘virtuous spirals’ of economic empowerment, increased

well-being for women and their families and wider social and political empowerment

Banks generally use individual rather than group-based lending and may not have

scope for introducing non- financial services. This means that they cannot be expected

to have the type of the focused empowerment strategies which NGOs have.

61
  Vijender, A. et al. (2012) stresses on improving farm level efficiency through micro

financing and micro insurance in achieving their economic and social goals, which at

present find have largely identified only limited success. The finding shows micro

finance institutions (MFIs) have to become steady profitable to trim down poverty and

role of state government in crucial in augmenting farm investment, micro financing,

micro insurance, facilitating private investment and spreading institutions to help the

poor in realizing inclusive growth of the India.

 Priyanka, Richa Verma and Meenu (2014) study mainly focuses on the

microfinance industry and analysis of how it is contributing towards the economic

growth. There are two main approaches of microfinance (a) SHG (b) MFI’s. In year

2012-13 MFI’s contributed 30% towards economy, so government of India passes the

development and regulation bill 2012 on 11 Feb 2014, to promote, develop and

regulate the microfinance in industries in India.

 Vipin Kumar, Monu Chauhan, Ritesh Kumar (2015) India’s 70% population lives

in villages and 60% of the income is generated from agriculture sector. So that

microfinance plays a major role in giving loan and financial help to the poor people.

This study aims at identifying the current status and role of microfinance in country’s

growth. Thus microfinance plays an important role in improving the standard of living

of poor people and helps them to earn. It is an effective tool for reducing the poverty

and socio- economic condition of the country. So government of India should focus

on microfinance for the sustainability and inclusive growth.

Research Design and Methodology

“All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to

inquiry and inquiry leads to invention”.

62
Generally, by research methodology we solve theproblem.so it is the backbone of the

research. So for every comprehensive research a proper methodology should be conceived.

Introduction

This thesis talks about the research methodology which is pursued through researcher of this

research study.it encloses the sections explaining approach to the objectives, hypothesis,

research design, research methodology, data collection, scope and limitations of the study.

We see there is a greater impact of microfinance in the rural area than in urban area.

Research methodology establishes the procedure used to collect the information and data for

analysis and evaluation.it eliminates the uncertainty in the research design to be followed.it is

really a journey of discovery. It is an organized method consisting of expressing the trouble,

formulating the hypothesis, collecting the facts and data and analysis of the facts. Thus,

research is the unique way of obtaining the knowledge for making its development.

According to Clifford Woody research comprises defining and redefining problems,

formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;

making deductions and reaching conclusions; at lasts carefully testing the conclusions to

determine whether they fit the formulating hypothesis. Research Design forms the heart and

soul of a ‘Thesis’.

Research Design

The research design is a basic research. It is the conceptual structure within which research is

conducted; it constitutes the blueprint for the collection, measurement and analysis of data.

The design includes an outline of what the researcher will do from writing the hypothesis and

its operational implications to the final analysis of data. This study examined banking sector

employees in different bank branches in order to collect information required to meet the

objectives of the study. Researcher had used descriptive research design in this present study.

63
Research Problem

The problem identified is “an empirical study on present working scenario of MFIs and SHGs

in rural areas”.

Micro finance is necessary to overcome exploitation, generate self-assurance for economic

self-dependence of the poor, mainly amongst women. Women have been always

discriminated and differentiated in the society not only in Bihar bur all over the world.

Providing loan to women is also viewed as giving more status in a socioeconomic way and

strengthening the relationship between gender and class. All over the world more than 70

percent of world’s poor are women. Women have a higher unemployment rate than men in

practically every country and constitute the majority of the informal sector of most

economies. Giving women access to microcredit loans therefore generates a multiplier effect

that increases the impact of a microfinance institution’s activities, benefiting multiple

generations. I have attempted to explore the various determinant of women empowerment to

analyze the role of microfinance in improving decision making power at domestic level,

analyzing the role of microfinance in empowering women economically, socio-culturally,

creating awareness and self-confidence.

Empowerment is one of the key elements of poverty reduction and the world bank has also

identified it as most important element as a primary development assistance goal. The

promotion of women’s empowerment as a development goal is based on a dual argument:

that social justice is an important aspect of human welfare and is intrinsically worth pursuing;

and that women’s empowerment is a means to other ends. Empowerment of women and

gender equality are prerequisite for achieving political, social, economic, cultural and

environmental security among people.

64
(Beijing, 1995). As it has been cited earlier, access to credit is an important mechanism for

reducing women’s poverty and to empower them. Both the Convention on the Elimination of

Discrimination against Women (CEDAW) and the Beijing Platform for Action (BPFA, 1995)

address women’s access to financial resources.

In Bihar, Women are basically the poorest of the poor. women constitute almost half of the

world population but their representation is comparatively low. In recent years, women have

done a tremendous job in different walks of life and are competing successfully with men

despite the socio-economic barriers. This study therefore intends to explore the contribution

of microfinance to the socio-economic empowerment of women and the measures that can be

taken to make credit easily accessible to them. With the access to education and knowledge,

awareness about their right women spreading their wings to higher levels. In past days,

women were restricted to the boundary only. Even they don’t have given role in decision

making. The situation was even more worsening in rural and remote areas. Now the situation

has been changed. Women are doing business activities and actively participating in decision

making process in her family as well as society. They have given freedom to do what they

wish. This is because of social works, NGO and other financial institution came forward to

provide microfinance to poor women. The main aim of microfinance is to empower women

and making them economically self-independent. In some part of remote areas in Bihar still

women do not have active participation in decision making. The researcher has taken the case

study of two blocks of East Champaran district e.g.- Kesaria and Mehsi.

Research Methodology: -

Source of Data:

The study is carried out in rural areas of North Bihar. There are 19 districts in North Bihar

out of which only East Champaran district is selected for research work, which included

65
primary data collected from the selected two blocks, i.e., Kesaria and Mehsi. The respondent

of the research were mainly rural women. There are two types of data as primary and

secondary data have been used in this study. Primary data is collected from a questionnaire

from respondent in the particular study which is fresh and for first time so it is original in

character. The secondary data is collected by different reports like NGO, Bharat

microfinance, economic survey, world bank and also from many other sources like reports,

websites, brochure and articles from various journals, papers which have been already passed

through some statistical process.

Sampling Method:

Multi-stage sampling has been followed. Since there are large number of members, so, data

has been collected randomly.

Method for data collection:

A structured interview schedule was prepared and used for collecting data from the women

SHG member. Both open ended and close ended questions were included in the schedule.

Sample Size:

75 samples have been collected from both the blocks of East Champaran, (North Bihar).

Statistical tools:

Simple statistical tools have been used to analyze and interpret.

Structured and straight forward questionnaire is used so that accurate and relevant data can be

collected.

Limitation of The Study:

66
The study is limited with the rural areas of North Bihar and only data related to rural women

have been taken. Hence, data related to urban women have been excluded from the study.

. The sample size 75 is very small and more than that could not be possible.

 The time period to prepare the report was less.

The information was collected only from those rural women who are engaged in the income

generating activities. The researcher has focused her attention on the self-help groups which

get micro financial assistance from commercial banks.

Role of Microfinance in the Empowerment of Rural Women of North Bihar:

Role of microfinance in the empowerment of rural women have been judged on the basis of

economic empowerment. There are many indicators of economic empowerment to measure

the role of microfinance for the empowerment of rural women. Some of them are as follow:

Distribution of respondent according to Age group:

Age group Number of respondent Percentage

Up to 25 years 15 20
25-30 30 40
30-35 22 30
35-40 8 10
75 100

67
 number of respondent
35-40
11% up to 25
20%

30-35
29%

25-30
40%

up to 25 25-30 30-35 35-40

1 Level of Education: - The level of education is one of the main indicators to measure

the empowerment of women. Out of total respondents, 35 (46.66%) respondents have

never gone to school and they are not able to read or write anything but some of them

can sign only. So, large numbers of illiteracy are one of the main causes for the

empowerment or rural women.

Education Number of respondents Percentage

Illiterate 35 46.66
Primary level 20 26.67
Middle level 12 16
Secondary level 8 10.67
Total 75 100

Distribution of respondent according to Education

68
 number of respondent
secondary
level
11%
middle level
16% illiterate
47%

primary
level
27%

illiterate primary level middle level secondary level

2. Participation in Microfinance Programme: Respondents were regularly participating in the

meeting. Out of total respondents, only 3 (3.77%) respondents were not participating in the

meeting on regular basis.

3.Involvement of Rural Women in Employment: - It is not found directly involvement of

rural women in employment after joining microfinance programme in the study area. Rural

women were benefited from micro finance programmes but not in terms of employment.

4. Creation of Assets: Before Joining microfinance programme 15 (19.81%)

responder said that they have assets in their names and after joining microfinance

programme 20 (27.35%) responder declared that they have assets in their names. The

increase in creation of assets was 7.54%.

5. Participation of Rural Women in Household Decision Making: Most of the rural

women said that no significant change was examined in decision making after joining

microfinance programme. Out of 75 respondents 30 (40%) responder said that they

have felt moderate change in decision making and 41 (54.66%) have felt no change in

decision making and rest i.e. 4 (5.40%) have felt significant change in decision

making.

69
 6. Contribution of Women into Household Income: After joining microfinance

programme, the contribution of women into household income has changed but in

very small percentage. Before joining of microfinance programme, the contribution of

women into household income was 35.84%, which has increased to 38.67% the

increase was only 2.83%.

Outcomes:

The purpose of the study was to analyze the socio-economic impact of women empowerment

through microfinance in north Bihar. The study aims on the research questions; how

microfinance impact the empowerment of women in Bihar?

The descriptive research design being used in the study. A questionnaire being held with

women beneficiary from SHGs in remote area. Descriptive statistic was used to examine and

interpret the data. Tables and chart being used to present the data.

1. According to the field survey, it is found that majority of the respondent belongs to

the age group of 25-30 years. Number of respondents from age group of up to 25

years were 20% in the study area. Similarly, 30% of the respondents belong to age

group of 30-35 years. 10% percent of the respondents belonged to the age group of

35-40 years respectively. During the study researcher found that most of them belong

to 25-30 years of age group.

2. Majority of the respondents (46.66%) belongs to the category of Illiterate. 26.67 % of

them studied primary level of education and only 10.67% of them were educated

secondary school level. It is notice that only 16% were educated middle class level.

Most of the women are illiterate. the level of middle and secondary education is least

70
 that somewhere hinders the respondents in their exposure and developmental

activities.

 State wise Credit Linkage of SHGs 2019-20 (%)

Source: -NABARD 2019-20, Microfinance in India

 State-wise Average Loan per SHG

71
 Source: -NABARD 2019-20, Microfinance in India

 Table: Percentage Distribution of Female Workers by

Employment Status by State (2017-18)

Self-employed
Own
Helper in Regular
account All self Casual
State househol wage/ All
worker, employe labor
d salary
employe d
enterprise
r
Andhra 17.3 25.0 42.3 14.2 43.5 100.0

Pradesh
Assam 11.9 8.5 20.4 59.3 20.3 100.0
Bihar 27.5 6.4 33.9 32.9 33.3 100.0
Chhattisgarh 8.9 61.5 70.4 7.9 21.7 100.0
Gujarat 30.2 24.6 54.9 23.1 22.1 100.0
Haryana 34.6 7.7 42.3 27.8 30.0 100.0
Jharkhand 18.0 50.6 68.6 14.1 17.3 100.0
Karnataka 16.9 23.5 40.4 25.8 33.8 100.0

72
 Kerala 21.9 7.7 29.6 47.5 22.9 100.0
Madhya 9.7 47.9 57.6 10.6 31.8 100.0

Pradesh
Maharashtra 12.2 32.8 45.1 21.8 33.1 100.0
Odisha 15.0 35.3 50.3 14.2 35.5 100.0
Punjab 31.9 8.4 40.3 45.2 14.5 100.0
Rajasthan 22.1 57.9 80.0 8.6 11.4 100.0
Tamil Nadu 17.4 16.0 33.5 30.1 36.4 100.0
Telangana 23.4 25.1 48.5 17.9 33.7 100.0
Uttar Pradesh 28.8 44.5 73.4 13.8 12.9 100.0
West Bengal 32.1 13.8 45.9 27.2 26.9 100.0
All-India 20.2 31.7 51.9 21.0 27.0 100.0
Source: Periodic Labor Force Survey (MoSPI) NSO, 2018

FINDINGS

 In this we see that most the villages people aren’t aware of microfinance. They

generally prefer bank for the loans.

 The percentage of literate people in rural area is very less and the facts about

microfinance are being manipulated by the microfinance cooperation. They

don’t get proper guidance and training about this facilities resulting

incomplete delivery of pros and cons of the microfinance.

 Among all more than half (59%) respondent aren’t aware of MFIs which leads

to introducing new schemes for awareness of the MFIs.

 37% people know about MFIs through their neighbor, relatives and many

other sources.

 Less than half respondents are in favor of microfinance and they support it by

responding that it empowers and helps in reducing the country from country.

73
  Micro credit and micro saving is the main services of microfinance which

people usually use.

 35% of the people are takin loan for agriculture purpose and 46% take it for

personal consumption.

 41% of respondent say that they want loan for their business purpose and

empowering themselves.

 21% people are facing difficulty during taking the loan like cooperation of

representatives and 23% people facing problem of excessive documentation.

 98% women felt that they were exploited by their owners as they were paid

less wages for more work.

 Majority of the respondent felt the need of training for their skill up gradation.

 The respondent get loan by SHGs at an interest of 2-3 %.

 Most of the respondent takes loan from Mahajan or money lender of the rural

area at an interest of 7-8%.

 91% SHGs have failed to sustain if the project is withdrawn.

CONCLUSION:

Through this paper we see in conclusion, Microfinance is widely recognized and effective

tool for the empowerment of women. Microfinance is multifaceted and works in an integrated

system. There are many stake holders and each one has a definite role to play. In the core

there is client. There is a second level called micro level where MFIs, NGOs, SHGs and

Grameen work to provide financial support to individual client. Empowerment plays an

important role in nation building. By the help of SHGs, Jeevika, MGNREGA, various

programmes and schemes there is a major changing in our society Based on the descriptive

study and on the analysis of the data collected from the study area i.e. Bihar. There is increase

74
in the number of women beneficiaries in SHG and there is considerable awareness among

them and they understand the importance of participation which gives them a sense of

belongingness. Empowerment of women and the inculcation of financial training and

discipline amongst the poor will undoubtedly have long term socio-economic benefits. Still,

there are key areas of SHG management that need to be improved. The study finds that this

mechanism of credit coupled with the mobilization and organization of women on the basis

of strengthening and collective action empowers women. It is this aspect of the study that

brings about welcome changes in the women’s lives has to be highlighted. The study revealed

that access to microfinance has contributed immensely to the economic empowerment of

women through improvement in their businesses. The study shows that access to

microfinance has improved the status of women both at the family level and in society as a

whole. At the family level, the study reported an improvement in household income and

standard of living of the family. The social level, there was a rise in the confidence level of

clients, increased degree of socialization and positive outlook in terms of aspiring to future

leadership positions. This empowerment is restricted within the limited space like women not

facing any financial crisis and burden as the loan accessed from microfinance made them to

somehow manage the expenses smoothly and had a facility of repayment flexibly. The loan

amount was not utilized to the extent that respondents could startup their own enterprise as

only few had done so, women developed self-confidence within themselves that they were

able to handle any situation or crisis. Ultimately Women Are Empowered. I would like to say

that it has been an interesting to do research on microfinance. This paper contributes to the

efforts of analyzing the impact of microfinance on women’s empowerment and its role in

enhancing economic growth. Study concluded that, Microfinance plays an important tool in

poverty alleviation and empowerment of women all around the globe. Apart from this, the

government or Different NGOs should focus on education of women as well as to organize

75
various training programmes for the women. But still the support is needed to remove

poverty and strengthen the hands of women.

Empowerment of women and the inculcation of financial training and discipline amongst the

poor will undoubtedly have long term socio-economic benefits. Still, there are key areas of

SHG management that need to be improved. The study finds that this mechanism of credit

coupled with the mobilization and organization of women on the basis of strengthening and

collective action empowers women. It is this aspect of the study that brings about welcome

changes in the women’s lives has to be highlighted income and standard of living of the

family. The loan amount was not utilized to the extent that respondents could startup their

own enterprise as only few had done so. But on the other hand women gained respect from

family as well as society because people felt that what they are doing was useful to their

family and in turn women developed self-confidence within themselves that they were able to

handle any situation or crisis. Ultimately Women Are Empowered. After becoming members

of SHG the socio-economic conditions and standard of living of the members and their

families greatly improved but until now, we need to educate the people regarding different

services like loans, savings, insurance etc... MFIs is not getting sufficient fund which is major

challenges in the microfinance growth. So, these institutions should look for some other

alternative sources of funds. MFIs should create self-employment opportunity and that will

prove the best way of poverty alleviation, and overcome the unemployment situation.

Recommendations and suggestion: -

 Government should take initiative for the extra funding for microfinance.

 Government should implement some policy which will provide stability and low

inflation

76
  Special training and programmes should be organized in order to make microfinance

more effective and fruitful.

 For skill development purpose, training centres, handloom training, weaving,

tailoring, sewing, embroidery should be setup.

 Microfinance Industry should come forward by representatives, programmes and

advertisement for creating more awareness among them.

 Government should send representative to the rural areas to give knowledge and

training relating to microfinance, so that they have easily access to the loan facility.

Bibliography

Websites:

 www.creditmantri.com/microfinance

 www.google.com

 www.apparelindustry.in/india.htm

 www.iupindia.com

 www.microfinancegateway.org

77
  www.Gulbarga.nic.in

 www.Nabard.com

 www.empowerwomen.org

 www.microfinanceinfo.com

 www.microfinanceinfo.com/microfinance-products

Books:

 Todd A. Watkins (2018) introduction to microfinance.

 K G Karmakar (2008) Microfinance in India.

Journals:

 Bihar Economic Survey 2019-20

 Anjoo Chauhan, university of KOTA “AN ANALYSIS OF SOCIO-ECONOMIC

IMPACT OF WOMEN EMPOWERMENT THROUGH MICROFINANCE

SCHEMES WITH SPECIAL REFERENCE TO UDAIPUR CLUSTER”.

 Puhazhendi, V. and Satya Sai, K.J.S. (2002). Micro-finance for Rural People: An

Impact Evaluation, NABARD.

 Mishra, S.; Mall, M. and Mishra, P.K. (2013). Micro Finance: A Tools for Poverty

Alleviation, American International Journal of Research in Humanities, Arts and

Social Sciences, pp. 236-238.

 Sinha, Archana (2004). Microfinance for Women’s Empowerment: A Perspective,

Kurukshetra, 52 No. 6.

 IOSR Journal of Humanities and Social Science (IOSR-JHSS) Volume 19, Issue 1,

Ver. XI (Feb. 2014), PP 05-08 e-ISSN: 2279-0837, p-ISSN: 2279-0845.

78
 . Bhandari, Amit K., & Kundu, A. (2014). Microfinance, Risk-taking Behavior and

Rural Livelihood 2. Microfinance and the challenge of financial inclusion for

development Jayati Ghosh Cambridge J Econ (2013) 37 (6): 1203-1219.

 . Microfinance in India (A. K. Chauhan, S. M. Feroze, New Century Publications ,

2011).

 Chen .1997. Cited in Linda Mayoux, Gender and empowerment concepts, September

2005, available at http://www.genfinance.info/Documents/GenderConcepts.pdf.

 Shylendra, H. S. 1999. Micro-finance and Self-Help Groups (SHGs): A study of the

experience of two leading NGOs, SEWA and AKRSP in Gujarat (India), Research

paper No. 16. IRMA.

 https://jaipuria.edu.in/pgdm/wp-content/uploads/2013/07/Role-of-microfinane-in-

women-empowerment-in-india.pdf

 https://www.diva-portal.org/smash/get/diva2:131654/FULLTEXT01.pdf

 https://books.emeraldinsight.com/resources/pdfs/chapters/9781787144262-TYPE23-

NR2.pdf

 https://niti.gov.in/planningcommission.gov.in/docs/reports/sereport/ser/stdy_mcrofin.

pdf

 C.R Kothari (2007) - Research Methodology Methods & Techniques, Second Edition,

New age International publishers, New Delhi.

 https://wcd.nic.in/sites/default/files/WCD_AR_English%20final_.pdf

 IOSR Journal of Economics and Finance (IOSR-JEF) e-ISSN: 2321-5933, p-ISSN:

2321-5925.Volume 1, Issue 3 (Sep. – Oct. 2013), PP 50-55.

 Manimekalai, M. Rajeshwari, G. (2001). Nature and performance of informal self-

help groups – A case from Tamil Nadu. Indian Journal of Agricultural Economics,

56(3), 453-54.

79
  Sharma K.C., “Micro Financing through SHGs”, Indian Journal of Agriculture

Economics, vol.56, No.3, 2001

80