SHG Bank Linkage Program: A priority state analysis

Rural banking is the inevitable key to fast paced development of rural and backward areas of a developing economy. It is the most effective medium of ensuring balanced regional development in a growing economy like India. For an economy with tremendous potential of economic growth, it is essential that all regions of such an economy and people of all strata get an opportunity to share the rewards of economic growth. This sharing of rewards can be made easier through rural banking and other financial sector credit innovations like micro financing, micro credit etc. To ensure even distribution of benefits of economic growth, NABARD, the apex institution launched SHG Bank Linkage Program, way back in 1992 and today over 95 million poor rural households are now part of this world's largest micro credit initiative. The research primarily focuses on analyzing the achievements of NABARD's SHG Bank Linkage Program in the ten priority states as declared by the Status of Micro Finance In India Reports of NABARD 2012–13. This research is a descriptive one, based on secondary data. It's outreach, savings parked with banks and other parameters are evaluated based on the data furnished in the Status of Micro Finance In India Reports of NABARD 2010–11 to 2012–13 and other relevant secondary data gathered on the subject.