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SHG-Bank Linkage in India in the third Millennium

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  • Pillai, Rajasekharan

Abstract

India embraced financial inclusion as a major macroeconomic reform initiative to amplify the social approach of banking even in the era of privatisation of banking and finance. The SHG-Bank linkage programme is trying to build partnership between an entrepreneurial class and repository of finance. A growing country like India, with perceptible rural-urban divide, has ample potential to develop and nurture entrepreneurial culture. Bank nationalisation gave an impetus to the social approach of banking. The broad based role of financial inclusion is possible only through the focus oriented partnership of government, banking institutions, RBI, NGOs, MFIs and SHGs. The present paper reviews the SHG-Bank linkage programme during 2001 to 2010 in Indian perspective.

Suggested Citation

  • Pillai, Rajasekharan, 2014. "SHG-Bank Linkage in India in the third Millennium," MPRA Paper 56166, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:56166
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    More about this item

    Keywords

    financial inclusion; micro-credit; micro finance; NABARD; pro-poor banking; SHG-Bank Linkage;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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