Self-Help Groups: Bridging the Gap for Financial Inclusion

Financial inclusion is very basic necessity in the economic progress of a country. But in most of the developing countries majority people are out of financial awareness ambit. Self -Help Group is one feasible way for the financial inclusion particular in rural area. Self – Help Group (SHG) is a small voluntary association of people, preferably from the same socio-economic background. They come together for the purpose of solving their common problems through self-help and mutual help. The SHG promotes small savings among its members. The savings are kept with a bank. This common fund is in the name of the SHG. Over the last two decades, in India, the Self-Help Groups have achieved many millstones. Various models and innovations, in terms of products and services, have emerged in the recent past in an attempt to achieve greater financial inclusion across the country. SHG are the key for enhancing the saving attitude among people of the country. Thus, no doubt, SHGs are primarily started to overcome financial problem of the neglected section of the society, today also, keeping the financing function as the first priority, SGHs help to boost financial inclusion. Further, the present study discloses that the SHGs members are empowered not only through micro financing activities but also by allied different initiatives. The study reveals that after joining the self-help groups, financial awareness improved and the socio- economic status of the members in the family and society are being increased day after day. Thus, to bring weaker and neglected sections of the society to main stream, self-help group can be one of the strong instruments.