Self-Help Groups (SHGs) are emerging as vehicles of socio-economic transformation in India. Examine the role of government in scaling their reach and effectiveness. (Answer in 250 words)

SHG/Self help group are voluntary groups of people coming together to reach their economic-goal objectives theme based on mutual growth. SOCIO-ECONOMIC TRANSFORMATION IN RURAL AREA: 1. Financial inclusion → women in the finance sector. SHGS → 43 lakh women in finance sector net score 2. Access to institutional credit in rural. Intl credit 3. Small businesses and commercial activities → entrepreneurship → women empowerment 4. Increasing human capital indicators MIT Chart showing 53k, 16k, 15k trends for 2014, 2021, 2023 5. Emergence of rural area as field of innovation → FPOs/Food processing startups 6. Women empowerment → Dione Didis → Sakhi programme → KVC Role of Government in Scaling: 1. SHG bank linkage programme → 1992 creating formal linkage → mainstreaming SHG. 2. Microfinance avenues → based on data → ban on usurious lending → definition of MFI - 3L to CL

3. Joint Liability Groups JLGs → to increase the prompt payment 4. PSL - priority sector lending limit → widened → made inclusive 5. Engagement with CSO/NGOs → MYSORAD - Mysore → Geetika - Bihar → Kumarasthala - Kerala → Mavim - Maharashtra → Shamasthala Trust - Karnataka ISSUES REMAIN: a Exit capture → dominance of few → 82 complaint against Niti by non-merit food seen → ought of merit b Lack of accounting & management HQ c Poor regional distribution disparity 4. SHGA - below National Help group [PMNSD]. NABARD Dasha - Sutra - Ten Principles are guiding principles

— Kiran Kamate · AIR 53