CA Rahul Kumar & Team

GS 2 Crux Notes (Mains 2022-23)

Self-Help Groups
What are SHGs? Informal group of 10-20 individuals, grouped voluntarily to promote common interest.
Historical Background Began in 1985 with MYRADA. Then in 1992, NABARD started promoting it through SHG Bank
Linkage Programme.
Characteristics 1) Homogenous background 2) common interest 3) active existence for at least last 6 months 4)
savings and credit operations 5) maintains records 6) democratic working
Principles 1) Mutual trust 2) group approach 3) spirit of thrift 4) demand-based lending 5) collateral free 6) poor
friendly lending 7) skill training 8) capacity building 9) empowerment 10) peer pressure for
repayment.
Formation 1) Begin without any external support 2) member contributions 3) lending from this small sum 4)
after 6 months of proper and efficient functioning eligible for bank finances
Objective Financial- 1) Saving and banking habits 2) financial and technical strength 3) economic prosperity 4)
availing loans Social- 1) women empowerment 2) capacity building 3) community development
Benefits Social- 1) Social integrity 2) women empowerment 3) change in household violence 4) community
participation Political- 1) pressure groups 2) voice to marginalized sections 3) easy access to govt.
schemes 4) participation in local govt. Economic- 1) financial inclusion 2) banking literacy 3) saving
and financial decision making 4) access to credit 5) employment Miscellaneous- 1) changes in
consumption patterns 2) decision making within the household 3) self confidence among members.
Opportunities (to support Structural- 1) Rural poverty alleviation (TN’s Amma Unavagam) 2) economic empowerment 3)
the arguments in favour) community development initiatives (Food for All- state funded community kitchen) Functional- 1)
resources utilization 2) leadership skill development (Pramila Bishnoi, SHG leader from Odisha→
nominated as LS candidate) Cultural-1) cultural advancement 2) promoting rural arts 3) rural culture
revival.
Challenges Human Development- 1) Dependence on govt. and NGOs 2) lack of knowledge and training 3)
patriarchal mindset and social stigma Economic- 1) diversion of money 2) sustainability 3) Less
increase in income (2nd ARC report) Insufficiency- 1) regional disparities 2) rural banking 3) lack of
supporting infrastructure 4) lacks security Governance- 1) politicisation 2) monitoring 3) Improper
Books (2nd ARC report)
Govt. response 1) SHG-Bank Linkage Programme 2) Swarna Jayanti Swarojgar Yojana 3) NRLM 4) Deendayal
Antyodaya Yojana 5) MUDRA loan 6) Odisha’s Mission Shakti 7) Jeevika Mission in Bihar 8)
Gujarat’s Sakhi Mandal Yojana
Example 1) SHG volunteers assigned in PDS shops in Tamil Nadu 2) SHG named Kudumbashree is helping
dispel fake news through its network of WhatsApp groups 3) Kerala Kudumbashree self help group
approach (SHG) approach for housing for poor, low cost sanitation and skill upgradation 4) Women
Self Help Groups forming Sakhi Mandals in Gujarat to start business
Recent Development 1) Covid-19 compacting through masks production 2) sanitizers and PPE kit productions 3) Sanitary
Pad ‘AsmitaPlus’ in Maharashtra 4) Disposable carry bags to replace plastic bags 5) promotion of
One District-One Product scheme
Way forward 1) Govt. as facilitator and promoter 2) reducing regional disparities 3) expansion of financial
infrastructure 4) extension of SHGs to urban areas 5) monitoring and reporting 6) need based
approach.
UPSC PYQ Can the vicious cycle of gender inequality, poverty and malnutrition be broken through
microfinancing of women SHGs? Explain with examples. (2021)
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