Self-Help Groups and Economic Development of Women in India through Microcredit Scheme

The concept of SHG significantly impacts the economic status of the poor people of India. These groups are the associations that are constituted voluntarily to achieve collective benefits. This group may be registered or unregistered. Members who have engaged in SHGs agreed to save a small amount of money regularly for the contribution of the common fund. An analytical research method has been applied to carry out this research work. The present study is purely based on the data collected from various published sources such as articles, NABARD annual reports, and RBI bulletins. The collected data has been analyzed and interpreted to reveal the significance of SHGs for financial inclusion through the microfinance system. It brings a massive opportunity for income generation activities. The study also found that a good number of SHGs has increased in recent years. The savings amount has also consistently increased from 2018-19 to 2020-2021. The data also proves the significance of the SHG-bank linkage program as a boon for the poor people in rural India to identify and enhance their potential.