Staff Reporter

Nagercoil: The National Bank for Agriculture and Rural Development recently conducted a survey to access the quality of various self-help groups in respect of important aspects like formation, meetings, books of accounts, savings, internal loaning, credit linkage, utilisation of revolving fund assistance and repayment of loans, said the Assistant General Manager (NABARD), P. Sadasivam.

Most of the SHG members were agricultural coolies, fisherwomen and housewives and some of them were engaged in traditional activities. SHG movement has now liberated the rural poor from the day to day economic problems to some extent and created the saving habit among rural poor.


However the team made some recommendations to the Government such as the non-governmental organisation should be motivated for capacity building of groups and train the groups on the concepts and book keeping. There should be constant co-ordination with bank branches and NGOs for linking matured groups especially under direct linkage.

The bank staff should provide adequate exposure on procedures and documentation, concepts and methodology for linking SHGs.

Many NGOs have expressed inability due to reduction in remuneration paid to them under Mahalir Thittam. Compared to the initial years, the quality of the training programmes given by them to SHGs was also decreasing.

Moreover savings of all the groups visited were remarkable.

However, the members continuously avail internal loans from their savings mostly for non-income generating activities.

This was due to the lack of awareness for selecting small economic activity.

The concerned NGO should play a pro-active role in motivating the groups for selecting their best suited economic activity, said the Assistant General Manager.