Enhancing Financial Inclusion: The Catalytic Role of Self Help Groups
A. P. Pati
North Eastern Hill University
The Management Accountant, May 2009
A large section of rural population does not have any access to formal credit. The exclusion of such a vast segment of the population warranted a new form of intermediary and in response to this self help groups emerged in India. Whether SHGs could be an effective intermediary in bringing more financial inclusion is studied in this article. It is observed that financial inclusion through SHG efforts has a tremendous potential, but there is the need of increasing effort by NGOs, state governments and MFIs and banks. To enhance the ambit of inclusion through the SHG format other products like micro insurance and money transfer services also need to be introduced along with lone credit facility.
Number of Pages in PDF File: 5
Keywords: Financial Inclusion, Financial Exclusion
Date posted: June 26, 2010