Functioning of SHGs with a special focus on an Indian State

Abstract

DAY-NRLM is one of the flagship programmes of the Ministry of Rural Development (MORD). This programme is aimed at poverty alleviation and implemented in a mission mode for targeted and time-bound delivery of results. The article analyses the functioning of SHGs and the impact of the interventions taken up under DAY-NRLM on the coverage of the target households, revival of defunct SHGs and the socio-economic changes in the lives of the SHG members. Based on fieldwork in Telangana, this article analyses the functioning of SHG institutions, including the problems faced by them and some of the ways in which these problems have been tackled by members and other stakeholders in these institutions. There has been regular saving and borrowing from internal funds and banks. Though SHGs are stable, they lack vibrancy in their functioning. The analysis leads to a better understanding of the factors contributing towards stability, quality and sustainability of the groups and helps in designing policies to achieve their sustainability.