Introduction

The Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) is a flagship program by the Ministry of Rural Development (MoRD) that aims to reduce poverty by empowering women, especially through Self-Help Groups (SHGs). These SHGs have been instrumental in improving financial inclusion, providing access to credit, and enhancing the economic and social status of women across India. The program has made significant strides in mobilizing women, improving their access to financial services, and facilitating entrepreneurial ventures in rural areas.

Key Features and Initiatives of DAY-NRLM

• Self-Help Groups (SHGs):
  • Formation: DAY-NRLM supports the creation and strengthening of SHGs, primarily focusing on rural women from economically disadvantaged backgrounds.
  • Mobilization: As of 2024, over 10.05 crore women have been mobilized into 90.87 lakh SHGs across India.
  • Objective: The main goal is to reduce poverty through empowerment by providing access to financial services and sustainable livelihoods.
• Start-up Village Entrepreneurship Programme (SVEP):
  • Support for Rural Enterprises: SVEP, a sub-scheme under DAY-NRLM, encourages SHG women and their families to set up small-scale businesses.
  • Impact: As of October 2024, 3.13 lakh rural enterprises have been supported under this initiative.
  • State-wise Distribution: The program has supported enterprises across various states, with notable contributions from Andhra Pradesh (27,651 enterprises), Kerala (34,569), and Uttar Pradesh (28,904).
• Banking Correspondent Sakhis:
  • Role: Women in SHGs are trained as Banking Correspondent Sakhis to enhance access to banking services such as deposits, credit, remittances, pensions, and insurance in rural areas.
  • Current Deployment: 1,35,127 Sakhis have been deployed under DAY-NRLM, empowering women to be financial intermediaries in their communities.
• Financial Support for SHGs:
  • Revolving Fund: SHGs receive funds ranging from Rs. 20,000 to Rs. 30,000 to boost their operations and financial stability.
  • Community Investment Fund: SHGs can avail of up to Rs. 2.50 lakh under the Community Investment Fund to strengthen their financial position.
  • Interest Subvention: To make bank loans more affordable, DAY-NRLM provides interest subvention to SHGs, reducing their overall credit costs.
• Online Marketing Platform:
  • www.esaras.in: This online platform allows SHGs to market their products, improving their access to broader markets and enhancing their income-generating potential.

Impact of DAY-NRLM and SHGs

• Financial Inclusion: SHGs play a vital role in financial inclusion by providing access to banking services, loans, and insurance to women, especially in rural and remote areas.
• Credit Mobilization: As of November 2024, SHGs have leveraged Rs. 9.71 lakh crore in bank credit, thanks to the capitalization support provided by DAY-NRLM, including Revolving Funds and Community Investment Funds.
• Empowerment of Women: SHGs have significantly contributed to the empowerment of women, providing them with financial independence, social support, and the ability to make decisions in their households and communities.

Challenges Faced by SHGs

• Beneficiary Identification: Ensuring that the most marginalized individuals are included in SHGs can be challenging.
• Training Gaps: There is a lack of quality training programs and expert trainers to build the capacity of SHG members.
• Financial Literacy: Many SHG members have limited knowledge of formal financial services, hindering effective financial management.
• Market Linkages: Poor integration with markets limits the growth potential of SHGs, especially in terms of product sales and business expansion.
• Community Support: Insufficient business environment support and value chain linkages pose challenges to SHG sustainability and growth.

Government Initiatives Supporting SHGs

• SHG-Bank Linkage Programme (SBLP): Launched by NABARD in 1992, this initiative aims to link SHGs with formal banking institutions, facilitating financial inclusion.
• Mission for Financial Inclusion (MFI): A broader initiative to ensure that rural populations have access to affordable financial services such as savings, credit, insurance, and pensions.
• Lakhpati Didi Initiative: Launched in 2023, this initiative empowers SHG women to adopt sustainable livelihood practices and aim for an annual household income exceeding Rs. 1 lakh.

Role of SHGs in Rural Development

• Women Empowerment: SHGs have emerged as a powerful tool for empowering women through financial independence, social security, and the ability to make informed decisions.
• Economic Growth: SHGs foster small-scale entrepreneurship, thereby creating local businesses that contribute to rural economic growth.
• Social Cohesion: By promoting collective action, SHGs provide a social support system that helps in addressing common issues faced by their members, such as health, education, and safety.

Future Prospects and Way Forward

• Technological Integration: SHGs should leverage advanced digital platforms for transaction management, record-keeping, and communication, enhancing efficiency and accessibility.
• Reducing Informal Borrowing: Linking SHGs with formal financial institutions will reduce reliance on informal lenders, promoting financial inclusion.
• Inclusive Approach: SHGs should adopt an inclusive model to ensure that members from diverse socio-economic backgrounds are fairly represented and benefit equally.
• Training and Capacity Building: There is a need for more Community Resource Persons (CRPs) who can guide SHGs in beneficiary identification, financial management, and scaling their activities.