A study of shg-bank linkage modelof national bank for agriculture and rural development (Nabard)

The microfinance movement in the country is growing very rapidly, and it is largely because the MFIs and the SHGs provide the much needed financial services to the economically active poor population working in the informal sector. Globally over a billion poor people are still without access to formal financial services and some 200 million of them live in India, despite massive branch expansion of banks a very large number of poor especially the underprivileged sections of the society continue to remain outside the fold of the formal banking system.

In this backdrop the research paper highlights the efforts taken by National Bank for Agriculture and Rural development(NABARD) for developing SHG-Bank linkage model that would fulfill the requirements of the poorest both saving and credit, rather than providing just micro-credit facilities.