Comparative analysis of Shg-bank linkage programme in Bimaru states and Andhra Pradesh since 2010

Lack of access to finance for vulnerable and weaker sections of the society has been recognized as a serious threat to economic progress especially in developing countries and therefore access to finance, especially by the poor and vulnerable groups is a prerequisite for poverty reduction employment and economic growth. Moreover, All India Rural Credit Survey conducted by RBI in 1951, 1961 and 1971 documents the share of commercial banks were 0.8%, 0.4% and 2.2% respectively. Therefore, a number of steps were taken by the competent authorities to scope the problem but all in vain. In this backdrop, researchers, academicians and policy makers investigated that access to credit is paramount rather than cheap availability of credit. NABARD took an action research project in consultation with Mysore Resettlement and Development Agency (MYRADA) -an NGO in Karnataka which forced NABARD to launch SHG-Bank Linkage Programme on the lines of Grameen Bank in Bangladesh in 1992. But the success of the programme remain confined to southern states especially Andhra Pradesh and leaving other parts of the country beside. The present paper tried to made a comparative analysis of SHG-Bank Linkage Programme in BIMARU States (Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh) and Andhra Pradesh for the past four years and suggest necessary remedial measures to overcome regional imbalances.