Sustainability of Old Self Help Groups in Telangana
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SUSTAINABILITY OF OLD SELF HELP GROUPS IN TELANGANA Study commissioned by National Bank for Agriculture and Rural Development Study conducted by April 2020 Mahila Abhivruddhi Society Plot No. 11 & 12, HIG, Taneshanagar Manikonda, Hyderabad -500 089 Telangana i ii ACKNOWLEDGEMENTS At the outset, I am greatly indebted to all the 60 SHGs and 120 SHG member households who spared their valuable time and provided information during our visit to SHGs and SHG member households. Further, I am highly thankful to Community Coordinators and Village Organization Assistants of sample mandals whose help is immense in identifying the sample villages and SHGs and in sharing their experiences during focus group discussions. Mahila Abhivruddhi Society is highly thankful to Sri Vijaya Kumar, CGM, Smt. Smita Mohanthy, DGM, and Sri Somasundaram, AGM of NABARD Regional Office, Hyderabad for commissioning a study, and their support in timely release of funds and coordination with district officials. Further, I am highly thankful to the DDMs of NABARD at District level Sri. Krishna Moorthy, for sharing their experiences during our visit. I would like to extend my sincere thanks to the Study Technical Advisor Mr. CS Reddy, CEO & Managing Director of APMAS for his inputs in developing the study design, preparing data collection tools, data analysis and study report. I would like to express my earnest thanks to Mr. Naveen Kumar, Project Manager who has taken pains in conducting fieldwork for data collection, qualitative data analysis and in preparing caselets. My sincere thanks to Miss A. Padmasri Nivedita, Project Manager for her support in review of literature, orientation of the study team and in reviewing draft report of the study. I am highly thankful to Sri CEO of SERP-Telangana, Sri. M. Narasimha Reddy, Director, SHG Bank Linkage, SERP-Telangana, Sri S. Vidhyasagar Reddy, Managing Director of Streenidhi Credit Cooperative Federation Ltd, Telangana who have spared time and shared their rich experiences with the study team. I would like to express my sincere thanks to Assistant Project Managers, SERP Telangana and bank branch managers of sample mandals for their cooperation & coordination and for sharing their experiences with the study team. I sincerely hope that all the major stakeholders, including policy makers, practitioners and professionals in the development sector find this report useful to understand the sustainability of old SHGs and to enhance the effectiveness of the program implementation through appropriate policy and strategy changes. I welcome any feedback or suggestions on the report. Place: Hyderabad Dr. K. Raja Reddy, Date: April 2020 Principal Investigator iii iv CONTENTS S. No. Particulars Page No. Acknowledgements …………………………………………… iii List of Tables ……………………………………………………... vii List of Acronyms ………………………………………………… Ix 1. Fact Sheet ……………………………………………………….. 01 2. Executive Summary ……………………………………………. 03 3. Chapter-1: Introduction ………………………………………. 13 4. Chapter-2: Socio-economic Profile of Sample Units …… 25 5. Chapter-3: Institutional Performance & Sustainability....... 36 6. Chapter-4: Financial Performance & Sustainability ……. 52 7. Chapter-5: Issues and Challenges …………………………. 74 8. Chapter-6: Women Empowerment ……………………....... 90 9. Chapter-7: Impact of Self Help Groups ……………………. 101 10. Chapter-8: Conclusions and Recommendations ……...... 117 11. References ………………………………………………………. 123 v vi LIST OF TABLES AND GRAPHS S. No. Title of the table/Graph Page No. I List of Tables 1.1 SHG Bank Linkage Programme in Telangana and India… 13 1.2 SHG Programme in Telangana ……………………………….. 14 1.3 District-wise Coverage of Sampling Units …………………. 21 2.1 SHGs and SHG Federations in the Sample Districts ………. 26 2.2 SHGs and SHG Federations in the Sample Mandals ……... 27 2.3 Purpose of Forming / Joining SHGs …………………………. 27 2.4 Criteria for the selection of Members ……………………… 28 2.5 Promoters and Age of SHGs …………………………………. 29 2.6 Social Categories of Self Help Groups ……………………… 29 2.7 Group Size ………………………………………………………… 30 2.8 Age and Literacy Levels of Sample SHG Members ……… 31 2.9 Social Categories of SHG Members ………………………… 32 2.10 Landholdings & Incidence of Migration of Households … 32 2.11 Economic Activities of SHG Members’ Households …….. 33 2.12 Annual Income of SHG Members’ Households ………….. 33 3.1 Members’ Attendance in SHG meetings…………………. 37 3.2 Monthly Savings Per Member…………………………………. 39 3.3 SHGs Paying Honorarium to Book Keepers ……………….. 41 3.4 Quality of SHG Books …………………………………………… 42 3.5 Awareness on Roles & Responsibilities of Leaders ………. 44 3.6 Awareness of SHGs on Roles & Responsibilities of Leaders 44 3.7 Age of SHGs and Leadership Rotation ……………………… 45 3.8 Percentage of Members Served as Leaders ………………. 46 3.9 Internal Lending with SHG Own Funds ……………………… 47 3.10 Auditing of SHGs ………………………………………………… 48 3.11 Grades of SHGs ………………………………………………….. 49 4.1 Assets of Sample SHGs as on January 2020 ……………….. 52 4.2 Liabilities of Sample SHGs as on January 2020 …………….. 54 4.3 Funds Mobilized from External Credit Agencies ………….. 55 4.4 SHGs Loan Outstanding with External Credit Agencies …. 55 4.5 SHGs and No. of Loans with External Agencies …………… 56 4.6 Repayment Rate from SHGs to External Agencies ……….. 58 4.7 Incidence of Default and Overdues ………………………… 60 4.8 Default Management Strategies …………………………….. 61 4.9 Utilization of Latest /Current SHG Bank Loan ………………. 63 4.10 Trainings Undergone by the SHG Members ………………. 65 vii 4.11 Role of SHPIs in Credit Linkages ………………………………. 67 4.12 Details of Vaddi Leni Runalu ………………………………….. 68 4.13 Reimbursement of Interest on External Loans …..………… 69 5.1 Incidence of dropouts …………………………………………. 74 5.2 Incidence of Distribution of Group Funds/Savings ………. 77 5.3 Magnitude of Idle Funds in SHGs …………………………….. 81 5.4 Percentage of Idle Funds to Loan Outstanding to Bank ... 82 6.1 Opinion on the Changes in the Attitude of Staff …………. 91 6.2 Access to Family Resources ………………………………….. 93 6.3 Members’ Control on SHG & Other Loans ………………… 94 6.4 Mobility of SHG Women ……………………………………….. 94 6.5 Role of SHG Women in Household Decisions …………….. 95 6.6 Political Participation of SHG Members ……………………. 96 6.7 Important Changes Observed in Life ……………………….. 99 7.1 SHG Savings to the Total Household Savings …………….. 101 7.2 Economic Changes at Household Level ………………….. 103 7.3 SHG’s Share in Total Household Debt ………………………. 104 7.4 Asset Creation by the SHG Member Households …………. 105 7.5 Details of Enterprise Activities Taken Up by SHG the HHs .. 106 7.6 Employment Generation & Monthly Income ……………… 107 7.7 Social Changes at SHG Members’ Households …………… 108 7.8 SHG Member HHs Benefitted with Govt. Programmes …... 109 7.9 Changes at SHG Level …………………………………………. 110 7.10 Changes at Village Level ……………………………………… 112 7.11 SHGs’ Participation in Government Programmes ………… 113 7.12 Role of SHGs in Addressing Social Issues …………………… 115 II List of Graphs 1.1 Map Showing the Sample Districts in Telangana …………. 19 3.1 Details of Meetings ……………………………………………… 36 3.2 Average Savings Per Member Per Month ………………… 39 3.3 Incidence of Leadership Rotation …………………………… 45 4.1 Average Amount of Current Ban Loan Under SHGBLP ….. 56 5.1 Amount of Group Funds Distributed ………………………… 77 5.2 Velocity of Internal Lending …………………………………… 79 5.3 Average Amount of Funds in SHG SB Account …………… 81 6.1 Self-confidence Levels among the SHG Members ……….. 90 7.1 Average Percentage of Members’ Savings with SHGs ….. 102 7.2 SHGs’ Share in Household Debt ……………………………… 104 7.3 Households have Taken Up Enterprise Activities ………….. 106 viii ABBREVIATIONS &ACRONYMS ADB : Adilabad AGM : Assistant General Manager AP : Andhra Pradesh APL : Above Poverty Line APMAS : Mahila Abhivrudhi Society, Andhra Pradesh BC : Backward Class BPL : Below Poverty Line CB : Commercial Bank CBO : Community Based Organization CBRM : Community Based Recovery Mechanism CIF : Community Investment Fund CRI : Critical Rating Index DCCB : District Central Cooperative Bank DFID : Department For International Development DPIP : District Poverty Initiatives Project DRDA : District Rural Development Agency DWCRA : Development of Women & Children in Rural Areas FC : Farmers’ Club FD : Fixed Deposit FGD : Focus Group Discussion Fig. : Figure FIP : Financial Inclusion Programme GP : Gram Panchayat HH : Household IAY : Indira Awas Yojana ICDS : Integrated Child Development Services IGA : Income Generating Activity JDY : Jan Dhan Yojana LDM : Lead District Manager LPG : Liquid Petrolium Gas MACS : Mutually Aided Cooperative Society MBN : Mahabubnagar MCID : Micro Credit Innovations Department MCP : Micro Credit Plan MEPMA : Mission for Elimination of Poverty in Municipal Areas MFI : Micro Finance Institution MGNREGS : Mahatma Gandhi National Rural Employment Guarantee MMB : Mahabubabad MS : Mandal Samakhya ix NA : Not Available NABARD : National Bank for Agriculture and Rural Development NGO : Non -Government Organization NKNL : Nagar Kurnool NML : Nirmal NRLM : National Rural Livelihoods Mission OC : Open Category PDS : Public Distribution System RF : Revolving Fund RMG : Raithu Mitra Group RR : Repayment Rate RRB : Regional Rural Bank SB A/c : Savings Bank Account SC : Scheduled Caste SERP : Society for Elimination of Rural Poverty SGSY : Swarnajayanthi Gram Swarozgar Yojana SHG : Self Help Group SHGBLP : SHG Bank Linkage Programme SHPI : Self Help Promoting Institution ST : Scheduled Tribe UNDP : United Nations Development Programme VO : Village Organization WDC : Women Development Corporation WGL