Path To Financial Inclusion: The Success Of Self-Help Groups-Bank Linkage Program In India

Abstract

Financial inclusion has been a major theme in both industrialized and developing economies in the era of financial globalization. When microcredit institutions have received limited success in many countries, microfinance is being used in India for the purpose of accomplishing universal financial inclusion. This paper recognizes the overwhelming efforts of the Government of India and focuses on the success of the linkage between commercial banks and self-help groups (SHGs). The SHGs comprising predominantly women groups help in the social cause of alleviation of poverty, , increase of sustainability, reduction of vulnerability, improvement of  capacity building and help the weaker sections build assets. Increased education, better standard of living, reduced child mortality and child labor, emancipation cum empowerment of women, and communal harmony are value adding benefits to the country.