TOPIC

IMPACT OF SHG-BANK LINKAGE PROGRAMME ON INCOME GENERATION OF

RURAL POOR IN RAJASTHAN (A case study of Jaipur and Sikar

District Central Cooperative Banks)

OBJECTIVES OF RESEARCH

• To find out the number of SHGs linked with Cooperative Banks in Rajasthan in general and in Jaipur and Sikar districts in particular.

• To assess the impact of SHG-bank linkage programme on income generation of the SHG households in Cooperative sector in Rajasthan.

• To find out the variation in income generation by households across different types of SHGs, regions, type of activity, type of linkage and SHGs age in the cooperative sector in the State.

• To find out the variation by comparative study of Jaipur and Sikar District Central Cooperative Banks.

• To find out the number of SHG’s linked with Cooperative Banks in last five years and their progress and changes in livelihood taken place in SHG members.

REVIEW OF THE LITERATURE

Some of the studies conducted in India are as under:-

1. Study conducted by Mr. Shankar Chatterjee (2004) of NIRD, Hyderabad on “Development of Rural Poor through Self Help Groups” (Ahmednagar district of Maharashtra State).

2. Study conducted by Ms.Anuradha Rajivan (2002-03) of SHARE Microfinance Ltd. on MICRO CREDIT AND WOMEN’S EMPOWERMENT’.

3. Study conducted by NABARD (2001) on “SHG-Bank Linkage programme- future scenario”.

4. Study conducted by MYRADA (Karnataka) an NGO (1998) on “Linkage Banking in South Asia-Bangladesh/India/Nepal”.

5. Study conducted by Mr.Sunil R. (June, 2005) of IIT, Mumbai on “Microfinance to Rural Poor: A case study of SHG-Bank linkage Programme in a backward district in India”.

• There are very few systematic research studies available on SHG-Bank-Linkage Programme in India. Therefore, there exists sufficient gap in research on this topic. Thus, there is ample scope for research on SHG-Bank-Linkage Programme, especially in Rajasthan State.

HYPOTHESES

The study attempts to test the following hypotheses:-

• Hypothesis 1 :The SHG bank linkage programme has positive impact on income generation of the rural poor.

• Hypothesis 2 : There exists significant variation in the incremental income generation of households across different regions.

• Hypothesis 3 : There exists significant difference in the quantum of incremental income across different types of SHGs, types of activity, mode of linkage and SHG’s age.

• Hypothesis 4 : There exists significant difference in income and recovery performance in SHGs of Sikar and Jaipur District Central Cooperative Banks.

RESEARCH DESIGN

Sample plan will be as under :• The comparative study of two districts viz.,

Jaipur and Sikar will be done by collecting primary and secondary data.

• 50 SHGs from Jaipur and 50 SHGs from Sikar districts will be randomly selected out of existing SHGs, to study the effectiveness of SHG Bank Linkage Programme.

• 3 Members of these randomly selected 50 SHGs in both the districts will be randomly identified and interviewed through a questionnaire to know their views on diverse aspects of the SHG-Bank Linkage Programme.

• The Secondary data will be collected from the Reports of SLBC, RSCB Ltd., DCCBs RBI and NABARD.

• State-wise and District-wise analysis will be done with special and detailed analysis of Jaipur and Sikar Districts.

• Group-wise analysis will be studied ranging from 1 to 5 years old SHGs having linkages with the Banks in these two districts.

RESEARCH TOOLS & TESTS

• Statistical tools like Averages, Percentages, ‘Z-Test, independent ‘t-test etc. will be used for comparing “Pre and Post” SHGs position and quantify the impact.

• Collected data will be tabulated and analysed on the basis of Region, Type of SHGs, Mode of Linkage and Age group of SHGs.

CHAPTER SCHEME

The study report will be prepared under different 6 Chapters as under:

Chapter I - Introduction - Credit needs of poor - Sources of credit, MFIs, Cooperatives, SIDBI,and NABARD-Criteria of SHGs Bank Linkage.

Chapter II - Research Methodology- Objectives of Research- Review of literature- Hypothesis- Sample

design- Tools of research- Research

gaps- Areas for future research

Chapter III - Scenario of SHGs linkages in Rajasthan- SHGs formation- Need and objectives – Selection parameters- support from NABARD- Training to SHG members- Rating of SHGs and monitoring.

Chapter IV - A comparative study of SHGs in Jaipur and Sikar - Formation of SHGs, Norms of selection- functioning of SHGs- Internal lending- problems-Nurturing, Bank Linkage Programme- Documents - Rating- Grading, Role of NABARD Grouping of SHGs- Age-wise Classification- Performance comparison.

CHAPTER V - Analysis of SHGs- linkages of JAIPUR and SIKAR districts: District profile; year wise formation

of SHGs during 2005-2010, Operation of DCCBs -financing SHGs in

both the districts.

• Chapter VI - Summary & Conclusion.

BIBLIOGRAPHYBooks:• Bhargava, Harsh and Kumar Deepak, Rural Transformation-Infrastructure

and Micro-Finance (2005), ICFAI University Press.• Burra, Neera, Joy Deshmukh-Ranadive, Ranjani K. Murthy Micro-Credit,

Poverty and Empowerment, Linking the Triad (2008), Saga Publications Pvt. Ltd., New Delhi.

Journals:• Dasgupta Rajaram. 2005. Microfinance in India; Empirical Evidence,

Alternative Models and Policy Imperatives. Economic and Political Weekly, Vol. XL (12), March 19, pp.1229.

• Government of India (GOI), 2002. Tenth Five year Plan (2002-2007): Dimensions and Strategies, Volume I. Planning Commission, New Delhi.

Reports / Studies• DHAN Foundation 2005, “Impacting Urban Poverty through Microfinance:

The SPMS Experience,” DHAN Foundation , Madurai.• Mahajan, Viajy and Gupta Ramola, Bharti- 2003. Microfinance in India;

Banyan Tree and Bonsai, A review Paper of World Bank, New Delhi, (Unpublished)

Workshop/Seminar/Symposium:-• Divisional Level Workshop on SHG-Bank Linkage Programme,

Rajasthan Regional Office of NABARD, Jaipur.• National Seminar on Micro Finance, (20th September, 2006) New

Delhi organized by Confederation of Indian Industry (with SIDBI), at New Delhi.

Articles/Papers:-• APMAS, 2005, “A Study on SHG-Bank Linkage in Andhra Pradesh,

“Hyderabad.• Baland, J-M, R Somnathan and L Vandewalle, 2007, “Microfinance

Lifespans: A study of Attrition and Exclusion in Self Help Groups in India,” Paper prepared for presentation at the Brookings-NCAER India Policy Forum 2007, July 17-18 New Delhi.

Website:• http://www.financialexpress.com, February 25, 2004• http://www.nabard.org/whats/mftf.htm