microfinance services through self help groups in odisha

International Journal of Social Science & Interdisciplinary Research_________________________________ ISSN 2277-3630
IJSSIR, Vol. 4 (4), APRIL (2015), pp. 9-18
Online available at indianresearchjournals.com
MICROFINANCE SERVICES THROUGH SELF HELP
GROUPS IN ODISHA
SUNIL KUMAR DAS
FINANCE & ACCOUNTS OFFICER, CENTRAL RICE RESEARCH INSTITUTE, INDIAN COUNCIL OF
AGRICULTURAL RESEARCH, CUTTACK-753 006, ODISHA, INDIA.
ABSTRACT
Achieving financial inclusion through formal banking system is a cumbersome assignment. The
growth of financial sectors depends heavily on the availability of adequate financial services like
credit, insurance and remittances to the majority population at an affordable cost. The concept of
microfinance came into existence as an alternative solution to provide financial services to
common section of the society. Micro-finance interventions are well-recognized throughout the
world as an effective tool for poverty alleviation and improving socio economic status of rural
poor. In India too, micro-finance is playing a dominant role for reducing poverty and empowering
rural women. It is the microfinance only who meets the requirement of poor rural people for
poverty alleviation, procurement of agricultural and farm input. Microfinance is a programme to
support the poor rural people to dissolve its debt and maintain social and economic status in the
villages. In order to extend supplementary credit strategies for reaching the unreached poor in
rural areas, National Bank for Agriculture & Rural Development (NABARD) launched its pilot
phase of the SHG bank linkage programme in 1992 after consultation with the Reserve Bank of
India (RBI). RBI directed all the commercial banks to participate & extend finance to Self Help
Groups (SHGs) and subsequently Regional Rural Banks (RRBs), Co-operative banks, NGOs also
extended finance to SHGs. The rural villagers of Odisha have undergone an incredible social
upliftment through the rebellion of microfinance. The value and acceptance of women has also
been increased significantly and is examined through a series of case studies. In this paper an
attempt has been made to highlight the progress of SHG-Bank linkage in the state of Odisha
through Microfinance.
KEY WORDS: SHGs, Microfinance, SHG-Bank Linkage Programme (SBLP)
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International Journal of Social Science & Interdisciplinary Research_________________________________ ISSN 2277-3630
IJSSIR, Vol. 4 (4), APRIL (2015), pp. 9-18
Online available at indianresearchjournals.com
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