Self Help Group (SHG)-Bank Linkage and Women Empowerment in India: Reality or Slogan!

The study's objectives are to understand the SHG (self-help group)-Bank linkage mechanism, financing model, and performance, and study the socioeconomic impact of the SHG-Bank linkage on SHG members' economic empowerment. Considering the magnitude of the rural population (84%), poverty level, time, cost, and convenience, Angul and Boudh, two adjacent districts, were chosen as the study areas for comparative observations. Angul district enriches with India's leading mineral-based industrial projects like coalmines, aluminum production, thermal power, and other governmental rural development programs. Contrary, the Boudh district is affluent with forest endowments, more a tribal populated one, poverty-ridden, and flush with more developmental programs. According to the literature review, rural poverty alleviation and women's empowerment still need to be fulfilled objectives. The method relies on both secondary and primary data. The primary data came from field visits, focused group discussions, and a survey with a semi-structured questionnaire. For secondary data, we visited the websites of RBI, NABARD, SIDBI, commercial banks, and Odisha Gramya Bank (OGB). Also, the literature review provided more insights into how the SHG-bank linkage has grown and changed the socioeconomic conditions of beneficiaries. The sample size was 56 officials and 276 SHG members. We have used descriptive statistics and content analysis to analyze and interpret findings. The preliminary observations and findings are that most SHGs have disputes and internal conflicts. Members do not perform group activities because of this. Some SHG members fail to return loans for months due to group disagreements. Members typically borrow money from other sources (such as selling agricultural goods or pledging gold and land) to settle loan installments. SHGs have become a political platform. Women's empowerment is incomplete. Poor education, market exploitation, and vote bank politics are significant causes. Practically, women's empowerment is farfetched. It appears to be a mere slogan now. As a result, this will play a more active role in the future political governance system.