ISSN: 1204-5357

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Mediating Role of Self Help Groups for Stimulating Rural Financial Intermediation in India

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This paper presents a conceptual research on the role and performance of the SHGs in economic development. SHGs are instrumental in facilitating financial inclusion in developing countries however there are innumerable glitches which restrict the performance of the SHGs. The paper evaluates the challenges faced by the SHGs in reviewing the sustainable strategy for SHGs in collaboration with the commercial banks for eradicating financial exclusion. The paper reviews the existing self-help linkage program in India and recommends a new business proposition of the existing SHG Linkage program. Strategic associations and consolidations strategies are prerequisite for accomplishing cost effective social development.

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