ranjan

India has long taken efforts to expand credit availability to rural areas. Early programs yielded disappointed results, were gradually replaced by efforts to establish Self - Help groups (SHGs) and link them to banks. This approach differs from traditional micro finance in a number of ways. SHG is a brain child of Gramin Bank of Bangladesh founded in 1975 who tried a new approach to rural credit in Bangladesh.   In 1991-92, NABARD started promoting self-help groups on a large scale marking the real take-off point for the SHG movement. In 1993, Reserve Bank of India also allowed the SHGs to open savings accounts in banks. his facility of availing bank service was a major boost to the movement.  SHGs  (Self Help Groups) is a financial intermediary usually consisting of 10 to 20 local men or women in between 18 to 40 years of age. It provides and growth and helps the resurgence of weaker section of the society in terms of outreach, social position and sustainability.    The features of SH