A Study on Impact of Self Help Group Linkage (Shg) Prgramme on Women Decision Making Ability in India: with Reference to Krishna District, Andhra Pradesh
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ISSN No.2349-6622 A STUDY ON IMPACT OF SELF HELP GROUP LINKAGE (SHG) PRGRAMME ON WOMEN DECISION MAKING ABILITY IN INDIA: WITH REFERENCE TO KRISHNA DISTRICT, ANDHRA PRADESH DR. P. ADI LAKSHMI Professor & Head Department of Business Administration, Andhra Pradesh, [email protected] DR. RAJESH C. JAMPALA Professor& Head Department of Commerce and Business Administration, P.B. Siddhartha College of Arts & Science, Vijayawada, Andhra Pradesh, India, 520 010, [email protected] DR. SRINIVASARAODOKKU Assistant Professor Department of Business Administration,P.V.P. Siddhartha Institute of Technology,Kanuru, Vijayawada, Andhra Pradesh, India, [email protected] ABSTRACT These papers analyze the role of SHG bank linkage programme on Women Decision Making Ability in India. The SHG movement in Andhra Pradesh began in 1998 on the basis of the ideals of thrift, self-help and internal lending. The creditworthiness of these groups, which are otherwise unbanked and have no collateral, has been based on their group discipline, repayment culture and accumulated corpus funds; and this has resulted in the SHG Bank Liaison Scheme, through which SHGs are granted credit by service area banks as per Micro Credit Plans of SHGs. Started in 2000, the groups have used bank loans of more than Rs.50 thousand crores.Primary data obtained from 750 members of the Self-Help Group (SHG) across 10 selected 50 villages in 10 selected Krishna District Mandals, Andhra Pradesh. The paper aimed to analyse the key characteristics of the effect of the Microfinance Program on Women's Decision Making Capacity in the selected district. The research also contrasts women's decision-making powers before joining the group and after joining the group. Key Words: Micro Finance, SHGs, Women, Loan, Decision Making 1. INTRODUCTION: According to a report carried out by Oliver Wyman for the Bill & Melinda Gates Foundation, half of the world's population has no access to financial services. About 70 percent of the population in developed countries is excluded. Less than 10 percent of the estimated 2.6 billion people living on less than $2 a day (nearly 40 percent of the world's population) have access to structured savings goods. 85 UNNAYAN | Volume-XII | (Conference Special Issue) Dec.2020 ISSN No.2349-6622 Just 40-59 per cent of Indians own a bank account, according to the Reserve Bank of India ( RBI). Just over 5% of Indian villages have a bank branch, and as few as 2% of the total 1.1 billion have credit cards. They mean that massive quantities that are not completely incorporated into a national financial system are in play, and are about to be in play. While India's economy has been able to depend on reasonably high levels of household saving, there is much more the government can do to put India's money to work, currently about 25 percent of Gross Domestic Product (GDP). The Self Help Community Bank Linkage Program (SHG-BLP) is a landmark model launched by the National Bank for Agriculture and Rural Development ( NABARD) in 1992 to provide affordable door-step banking services and has largely achieved the stated objectives of financial inclusion in order to increase financial access to rural and urban populations.Started as a programme of bank outreach, SHG-BLP has transformed itself into a comprehensive programme of financial, social , economic and late technical resource building in rural India.India‟s Self-Help Group (SHG) movement has emerged as the world„s largest and most successful network of women owned community-based microfinance institution. The NABARD-led SHG Bank linkage programme had a modest start with 225 credit-related groups and a loan sum of Rs. 29 lakh in 1992. Rs. 4750 within 3 years. After more than 25 years of SHG Bank linkage, the programme has grown exponentially, the system has evolved and matured, enabling the SHGs access to large loans under SHG BLP besides loans that SHGs have been able to access from their own federations and the NGO MFIs. The SHG BLP programme has crossed a several milestone as of March 31 , 2019 with a cumulative membership of around 1 crore groups covering 12.5 Crore households across India. By extending loans to the amount of Rs. 87.000 crore to 50.77 lakh SHG as of March 31 , 2019, the programme has made an indelible mark on the Indian financial landscape. The performance of the SHG bank linkage programme in India from 2016-17 to 2018-19 is shown in the table. 2. SHG BANK LINKAGE IN ANDHRA PRADESH; The broad vision of the programme is to enable poor households, through their membership in SHGs, to access appropriate formal credit on their doorsteps. Objective of the programme: Smoothing consumption or even servicing previous high cost debts sustaining current livelihoods Eventually, when households enter a stage where they can expect a higher degree of risk, the introduction of the UNNAYAN | Volume-XII | (Conference Special Issue) Dec.2020 86 ISSN No.2349-6622 Microcredit Plan (MCP).In Andhra Pradesh, the SHG movement began in 1998, focused on the ideals of thrift, self-help, and internal lending. The creditworthiness of these classes, which are otherwise unbanked, without collateral, was based on their group discipline, culture of repayment and accumulated corpus funds; and this resulted in the linkage programme of SHG Bank, under which, according to SHG Micro Credit Plans, SHGs are provided with credit by service area banks. So far, beginning in 2000, the groups have used bank loans in excess of Rs.50 thousand crores. As can be seen from Table-2 below, the SHG-Bank linkage programme has made great strides in the state of Andhra Pradesh. With the help of 71,59,437 members, 7,03,392 SHG groups were formed in the state of Andhra Pradesh. Of which 15,31,419 are members of SC, 4,40,316 are members of the ST party and others belong to other classes such as BC, OC and Minority. In the District, East Godawari district has the largest SHG groups, and Cuddapahhas the least groups. 2.1.SHG GROUPS IN KRISHNA DISTRICT: The Mandal Wise SHG Groups in the Krishan District of Andhra Pradesh, India are shown in Table 3. With a total membership of 6,03,921, the district has 58,892 self-help organisations. Penamaluru Mandal has the highest SHGs in the district of Krishna and Pedaparupudi Mandal has the least SHG members. 3. NEED FOR THE STUDY: Poverty alleviation for all developed nations has been at the top of the agenda. One of the ways to do this is through the expansion of microfinance and the promotion of rural financial inclusion. The Self-Help Group (SHG)-Bank Linkage programme is part of the microfinance expansion policy of the government, which has been operationalized by state governments with funding from the National Bank for Agriculture and Rural Development, NABARD, the national refinancing agency. Self-help groups consisting of 10-20 villagers, mostly women, are roped into the formal financial system by linking the banks The relationship between the Self Help Groups ( SHGs) and the banks in the state is growing stronger.Now, with regard to the SHG-bank linkages, Andhra Pradesh stands first in the nation. The state accounts for as much as 37% of the bank links given across the country. As a researcher in Andhra Pradesh , India, there is a need to investigate the role of SHGs in the development of women. The research results would assist policy makers in designing better strategies for the implementation of the country's SHG programme. 87 UNNAYAN | Volume-XII | (Conference Special Issue) Dec.2020 ISSN No.2349-6622 4. OBJECTIVES: the objectives of the research are as follows; 1. To examine how women members of SHGs used the loan for their livelihood promotion. 2. To analyze the changes, if any, in the socio-economic conditions of the members after joining SHG. 3. To analyze the women group involvement activities after joining the SHGs. 4. To know the Changes in the decision making in the family after joining the SHGs 5. METHODOLOGY OF THE STUDY: 5.1.SAMPLE COLLECTION: In all the four revenue divisions, the sample collection was such that the mandals were covered. In the Ten Select Mandals of the Krishna District, Andhra Pradesh, the sample size is 750 SHG members. The sampling was carried out taking into account that the problems associated with the SHGs could run across similar lines, so it was thought that a sample size of 10 out of 50 mandals would be adequate to establish a view of the group-related problems. Through the Likelihood Proportionate to Size (PPS) sampling, mandals and villages were chosen, which means that the sampling is population-based and thus allows coverage of all types of mandals: small, medium and large, both in rural and urban areas. Five villages were again selected through PPS in each mandal, and 15 SHG members were selected through random sampling in each village. 5.2.SAMPLE DISTRIBUTION: For data collection , the researcher had selected 50 villages in 10 selected mandates of Krishna District , Andhra Pradesh. The comprehensive distribution sample is given in the table -4; 5.3.DATA ANALYSIS: The mean , standard deviation and paired t-test were used for the analysis of the data. Before and after entering the SHG, a paired t-test is used for determining the disparity in the economic status of respondents. Apart from these, the Chi- square test is used to test the relationships of importance between variables. Statistical packages such as SPSS and Ms-Excel have been used for the analysis of results. 6.DATA ANALYSIS AND INTERPRETATION Table -5 presents the descriptive statistics