Government measures to promote  Self Help Groups (SHGs) for realization of socio-economic development through the following programmes: UPSC Daily Important Topic | 14 September 2022

Government measures to promote  Self Help Groups (SHGs) for realization of socio-economic development through the following programmes:

✓Deen dayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), under Ministry of Rural Development, across the country in a mission mode with

the objective of organizing the rural poor women into Self Help Groups (SHGs) and continuously nurturing and supporting them to take economic activities till they attain appreciable increase in income over a period of time to improve their quality of life and come out of abject poverty.

The programme aims to ensure that at least one woman member from each rural poor household (about 9 crore) is brought into the fold of women SHGs and their federations within a definite time frame.

The programme is being implemented in all the States and Union Territories, except Delhi and Chandigarh, in a phased manner. As on 31st May, 2019, 5.96 crore women have been mobilised into 54.07 lakh women Self Help Groups (SHGs) under the programme.

Under DAY – NRLM programme, Revolving Funds (RF) @ Rs.10,000-15,000 per SHG and Community Investment Support Fund (CISF) @ maximum of Rs.2,50,000 per SHG  is provided to Self Help Groups (SHGs) and their Federations to take up self-employment for income generation. SHGs are also linked to banks for availing loans for taking up various livelihood activities.

 In addition, capacity building and technological support is also provided to the target households for taking up income generating activities both in farm and non-farm sectors.

✓Deendayal AntyodayaYojana – National Urban Livelihoods Mission (DAY-NULM)under Ministry of Housing and Urban Affairs  aims to reduce poverty and vulnerability of urban poor households on sustainable basis. The mission, inter alia, is mandated to build strong grassroots level institutions of the poor.

Under Social Mobilization and Institution Development (SM&ID) component, the mission envisages universal social mobilization of urban poor into Self-Help Groups (SHGs) and their Federations by bringing at least one member from each urban poor household, preferably a woman, under the SHG network.

These groups serve as a support for the poor, to meet their financial and social needs.

✓Under the Self-Employment Programme (SEP), interest subvention over and above 7 percent rate of interest is available to all SHGs accessing bank loans.

 An additional 3 percent interest subvention is also available to all women SHGs who repay their loan in time

✓Swarn Jayanti Gram Swarozgar Yojana (SGSY): In 1999, the Government of India, introduced SGSY to promote self-employment in rural areas through the formation and skilling of SHGs.

✓Scheme for promotion of Women SHGs (WSHGs) in backwards & LWE districts of India:

▪ The scheme aims at saturating the districts with viable and self-sustainable WSHGs by involving anchor agencies who shall promote & facilitate credit linkage of these groups with banks, provide continuous handholding support, enable their journey to livelihoods and also take the responsibility for loan repayments. Under the Scheme, in addition to working as an SHPI, the anchor agencies are also expected to serve as a banking/business facilitator for the nodal implementing banks.

▪ To facilitate the implementation of the Scheme, an exclusive fund – ‘Women SHG Development Fund’ was set up by the Dept. of Financial Services, Ministry of Finance, Govt. of India in NABARD with a stated corpus of Rs. 500 Crore Grant support with Rs 10,000/- per SHG.