International Research Journal of Education and Technology

Access to finance by the rural poor and vulnerable groups is an essential pre-requisite for poverty reduction and sustainable development. The Government of India has implemented several policies such as Nationalization of Banks, Lead Bank Scheme, Regional Rural Banks, Service Area Approach and financing of SHGs, for promoting the access of the rural poor to institutional finance. However, the share of the rural poor in the bank credit continues to be very low. Lending the rural poor continues to be considered as risky by the banks. One of the important reasons for this situation is the lack of an effective credit delivery mechanism for the poor, besides limited outreach and coverage. It is in this context that the National Rural Livelihoods Mission (NRLM) and deendayal  antyodaya  yojana has taken up the task of promoting financial inclusion of the rural poor through SHGs. Financial inclusion of the rural poor implies delivery of financial services at an affordable cost.

KEYWORDS: Financial Progress, Deendayal Antyodaya Yojana, National rural livelihoods mission, self help groups.