Self Help Group (SHG) Movement in India has been recognized as an effective strategy for mobilization and empowerment of rural people, particularly poor women and other marginalized groups.
Role of self-help groups in rural developmentDevegowda S R
Self help groups (SHGs) play an important role in rural development by promoting savings, providing credit to members, and empowering women. SHGs are small voluntary groups that are formed to save money and provide loans to members. They help generate additional income, impart skills, and create financial inclusion in rural areas. Research studies have found that SHG membership increases members' monthly incomes, financial literacy, and decision making power. SHGs help alleviate poverty and empower rural communities through collective action.
This handbook provides guidance on forming self-help groups (SHGs) to help poor communities. It discusses identifying potential SHG members and forming groups of 10-20 individuals from very poor families. It outlines how to organize group meetings and train members on financial management and social empowerment. SHGs can open a savings bank account, conduct internal lending between members, and eventually obtain loans from banks which the handbook says helps members properly manage, utilize, and repay loans.
The document provides information about self-help groups (SHGs) in India. It discusses that SHGs are small, voluntary groups of rural poor that come together for savings, credit, and other financial services. It outlines the criteria for SHGs to be linked with banks, including being in existence for 6 months and having successfully undertaken savings and credit operations. It also describes the unique features of SHGs, such as collective decision making, providing financial services locally, and empowering poor individuals. Furthermore, it summarizes the role of NABARD in conceptualizing and piloting the SHG linkage program with banks in India.
A self-help group (SHG) is a village-based financial intermediary usually composed of 15-20 local women who make small regular savings contributions until there is enough capital to begin lending. SHGs aim to organize and empower women by enhancing participation, inculcating savings habits, and building capacities on a suitable platform for women. Objectives include creating an appropriate forum for addressing community needs, generating a sense of collective action, and improving socioeconomic status. SHGs progress through thrift and credit, social, and micro-enterprise stages and are said to empower participants more than other programs while also reducing material and structural costs.
Role of Self Help Groups in Rural Development-A Studyijtsrd
Rural development is a very dynamic process which includes in improving the socio-economic, political, environmental, and well-being of the poor people living in rural areas. In India more than 70 percent people living in rural areas, the concept of rural development assume great significance. The Molakalmuru taluk is one of the most backward taluk in Chitradurga district these areas have been facing so many problems like unemployment, poverty, lack of skills, illiteracy, and basic infrastructure health care common trend here. The present study is focused on the Socio-Economic status of Self-Help Group on rural development, and to study impact of Self-Help Group on rural development in Molakalmuru taluk. The present paper it is based on primary and secondary sources of information. Nagesha B | Ajeya G"Role of Self Help Groups in Rural Development-A Study" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-4 , June 2018, URL: http://www.ijtsrd.com/papers/ijtsrd14329.pdf http://www.ijtsrd.com/economics/development-economics/14329/role-of-self-help-groups-in-rural-development-a-study/nagesha-b
Self-help groups are village-based committees usually composed of 10-20 local women or men that provide mutual support for each other. They help members save small regular amounts, meet emergency needs through microloans, and gain economic independence. Self-help groups are an innovative setup in India that activate savings, build trust between rural communities and promoters, and provide access to credit. They meet regularly, discuss problems, and create a common fund through member contributions. Maintaining clear bookkeeping records is important for managing group finances and transactions. Various government programs and non-profits help establish and support self-help groups.
BESIDES the cooperatives and other forms of organisations, there is yet another form of enterprise which is organised voluntarily by the members themselves to meet a variety of their needs. The Self-Help Groups [SHGs] are such organisations which are formed, nourished and managed by the members themselves.
The SHGs, people’s voluntary and informal institutions, are organised as viable alternative to achieve the objectives of rural development and to get community participation in rural development programmes. These are similar to traditional group activities in all communities. It is a new form of a movement which aims at reducing the incidence of poverty through the provision of easy credit. In case of self-movement, thrift and credit are the entry points of activity. Micro-finance or provision of financial services to low-income households, have come to be accepted in policy implementation as the most efficacious intervention to alleviate poverty, enhancing agricultural production and developing local leadership.
A Self-Help Group is an informal organisation of not less than 10 and not more than 20 people from the poorer section of the village society, organised, owned, operated and controlled by the members in a democratic manner, based on solidarity, reciprocity, common interest and resource pooling. Self-Help Group is a social design in which people participate by making themselves socially and economically accountable to each other. All SHGs are not necessarily linked to lead/focal bank because they do not need external credit except the support from their sponsoring organisations.
SHGs have been promoted under various programmes and by various development agencies. It has been found that SHGs can serve the needs of the small farmers better than the cooperatives. It is believed that Self-Help Groups are a sub-system of cooperatives.
Role of self-help groups in rural developmentDevegowda S R
Self help groups (SHGs) play an important role in rural development by promoting savings, providing credit to members, and empowering women. SHGs are small voluntary groups that are formed to save money and provide loans to members. They help generate additional income, impart skills, and create financial inclusion in rural areas. Research studies have found that SHG membership increases members' monthly incomes, financial literacy, and decision making power. SHGs help alleviate poverty and empower rural communities through collective action.
This handbook provides guidance on forming self-help groups (SHGs) to help poor communities. It discusses identifying potential SHG members and forming groups of 10-20 individuals from very poor families. It outlines how to organize group meetings and train members on financial management and social empowerment. SHGs can open a savings bank account, conduct internal lending between members, and eventually obtain loans from banks which the handbook says helps members properly manage, utilize, and repay loans.
The document provides information about self-help groups (SHGs) in India. It discusses that SHGs are small, voluntary groups of rural poor that come together for savings, credit, and other financial services. It outlines the criteria for SHGs to be linked with banks, including being in existence for 6 months and having successfully undertaken savings and credit operations. It also describes the unique features of SHGs, such as collective decision making, providing financial services locally, and empowering poor individuals. Furthermore, it summarizes the role of NABARD in conceptualizing and piloting the SHG linkage program with banks in India.
A self-help group (SHG) is a village-based financial intermediary usually composed of 15-20 local women who make small regular savings contributions until there is enough capital to begin lending. SHGs aim to organize and empower women by enhancing participation, inculcating savings habits, and building capacities on a suitable platform for women. Objectives include creating an appropriate forum for addressing community needs, generating a sense of collective action, and improving socioeconomic status. SHGs progress through thrift and credit, social, and micro-enterprise stages and are said to empower participants more than other programs while also reducing material and structural costs.
Role of Self Help Groups in Rural Development-A Studyijtsrd
Rural development is a very dynamic process which includes in improving the socio-economic, political, environmental, and well-being of the poor people living in rural areas. In India more than 70 percent people living in rural areas, the concept of rural development assume great significance. The Molakalmuru taluk is one of the most backward taluk in Chitradurga district these areas have been facing so many problems like unemployment, poverty, lack of skills, illiteracy, and basic infrastructure health care common trend here. The present study is focused on the Socio-Economic status of Self-Help Group on rural development, and to study impact of Self-Help Group on rural development in Molakalmuru taluk. The present paper it is based on primary and secondary sources of information. Nagesha B | Ajeya G"Role of Self Help Groups in Rural Development-A Study" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-4 , June 2018, URL: http://www.ijtsrd.com/papers/ijtsrd14329.pdf http://www.ijtsrd.com/economics/development-economics/14329/role-of-self-help-groups-in-rural-development-a-study/nagesha-b
Self-help groups are village-based committees usually composed of 10-20 local women or men that provide mutual support for each other. They help members save small regular amounts, meet emergency needs through microloans, and gain economic independence. Self-help groups are an innovative setup in India that activate savings, build trust between rural communities and promoters, and provide access to credit. They meet regularly, discuss problems, and create a common fund through member contributions. Maintaining clear bookkeeping records is important for managing group finances and transactions. Various government programs and non-profits help establish and support self-help groups.
BESIDES the cooperatives and other forms of organisations, there is yet another form of enterprise which is organised voluntarily by the members themselves to meet a variety of their needs. The Self-Help Groups [SHGs] are such organisations which are formed, nourished and managed by the members themselves.
The SHGs, people’s voluntary and informal institutions, are organised as viable alternative to achieve the objectives of rural development and to get community participation in rural development programmes. These are similar to traditional group activities in all communities. It is a new form of a movement which aims at reducing the incidence of poverty through the provision of easy credit. In case of self-movement, thrift and credit are the entry points of activity. Micro-finance or provision of financial services to low-income households, have come to be accepted in policy implementation as the most efficacious intervention to alleviate poverty, enhancing agricultural production and developing local leadership.
A Self-Help Group is an informal organisation of not less than 10 and not more than 20 people from the poorer section of the village society, organised, owned, operated and controlled by the members in a democratic manner, based on solidarity, reciprocity, common interest and resource pooling. Self-Help Group is a social design in which people participate by making themselves socially and economically accountable to each other. All SHGs are not necessarily linked to lead/focal bank because they do not need external credit except the support from their sponsoring organisations.
SHGs have been promoted under various programmes and by various development agencies. It has been found that SHGs can serve the needs of the small farmers better than the cooperatives. It is believed that Self-Help Groups are a sub-system of cooperatives.
This document provides an introduction to self-help groups (SHGs) in India. SHGs are informal associations of poor people who come together to improve their living conditions through collective efforts. They are formed to tackle problems related to poverty, illiteracy, lack of skills and access to formal credit that individuals cannot address alone. The goals of SHGs are to build trust between rural poor communities and bankers and encourage banking in hard to reach populations. SHGs function by members contributing small regular savings to a common fund and taking short term loans for economic activities. This empowers women and improves access to financial services, consumption, housing, health and government programs for marginalized groups. However, challenges remain regarding skills development, patriarch
SELF HELP GROUP: A PATHWAY TOWARDS CREDIT & ECO NOMIC EMPOWERMENT OF WOMENIAEME Publication
n the present era SHG has evolved as one of the tool to get credit facilities, savings and economic impowerment and it is also been considered as need-based programme for alleviation of poverty to the so far neglected target groups (women, poor, deprived etc.) The experience across India and other countries has shown a robust potential of Self help groups to integrate with the development issues thereby significantly impacting the lives of poor
Self-help groups (SHGs) were introduced in India to promote women's empowerment and self-sufficiency. SHGs are small community-based organizations composed of 10-20 rural poor women who voluntarily save small amounts of money together. They use their pooled savings to provide interest-free loans to members for purposes such as meeting emergency needs or starting small businesses. The objectives of SHGs are to provide women with a platform, job training, decision making skills, access to collateral-free loans, and increased confidence. Today, SHGs have become one of the largest microfinance programs in the world, helping to alleviate poverty and empower rural women economically and socially.
This document discusses a study on the role of self-help groups in empowering rural women in Tamil Nadu, India. The study examines how self-help groups provide an economic and social support system for women. Self-help groups help women start small businesses, access microloans, make independent financial contributions to their families, gain skills and confidence, and have greater freedom of movement. While self-help groups have made progress in empowering women, the conclusion notes that more still needs to be done to fully realize women's empowerment.
Self help groups are informal associations of financially weak individuals that are created to benefit group members. They are typically formed with 10-20 local people from similar backgrounds. The main purpose is to develop the socio-economic conditions of members. Government programs aim to empower women and support economic development through self help groups. Key features include small member size, common interests, equal rights, and maintaining monthly thrift savings. Self help groups provide important advantages like capacity building, mutual support, increased confidence and skills. Government schemes like DAY-NRLM provide funds and support to strengthen self help groups.
The document discusses the role of non-governmental organizations (NGOs) in supporting self-help groups (SHGs) in India. It notes that NGOs work to form SHGs, provide training, help obtain loans, and act as a link between SHGs and banks. The document also outlines benefits of the SHG model including improved access to credit for women and discipline in loan repayment. However, it mentions challenges such as lack of follow up, skills, and market access for SHG products. The document recommends that NGOs focus on leadership development, business strategies, and market-oriented approaches to strengthen SHGs.
Self Help Groups - Magic bullet to empowerment?Mouna Munshi
A summary of the dissertation done in the final year of my Masters program in Social Work.
I wanted to understand first hand if Micro Finance through Self Help Groups is really transforming and empowering women economically and otherwise.
This document provides information about women saving schemes in India. It discusses the history and guidelines for self-help groups and microfinance through women saving schemes. It outlines various government schemes to promote women saving schemes such as the Bhartiya Mahila Bank and Corporation Bank's savings scheme for women. An interview with Sangeeta Kamble, the leader of a women saving scheme called Vishwa Shanti Mandal, highlights her journey in founding the group and empowering women through financial inclusion and community support.
ROLE OF self help group in economic development-1.pdfMrParmanand
This document provides an introduction and background on self-help groups (SHGs) in India and their role in microfinance and economic development. It defines SHGs as small village-based groups, usually composed of 4-15 local women or men, who make small regular savings contributions and provide loans to members. The introduction discusses how SHGs are started by NGOs or government organizations to empower women and reduce poverty. It also explains how many Indian SHGs partner with banks for microcredit delivery and how SHGs pool savings to make members financially stable and self-employed through small business loans.
ROLE OF self help group in economic development-1.docxMrParmanand
This document provides an overview of self-help groups (SHGs) and their role in economic development. It discusses how SHGs are formed by bringing together small groups of economically homogeneous individuals who make regular savings contributions. The funds are then available for members to take loans and invest in income-generating activities. SHGs aim to empower members and alleviate poverty through collective savings, access to credit, and peer support. They have become an important microfinance model, especially in India through the SHG bank linkage program. The document also reviews shifts in development paradigms and approaches to rural development over time.
The National Rural Livelihoods Mission (NRLM) was launched in 2011 with the goal of alleviating poverty through self-managed self-help groups, financial inclusion, and sustainable livelihood opportunities. NRLM aims to cover 7 crore rural households across India. It focuses on social mobilization and building strong grassroots institutions through self-help groups. NRLM provides support structures at national, state, district and local levels to facilitate livelihood programs and access to financial services for rural communities.
The document discusses a study on empowerment of women through self-help groups in Anantapur district of Andhra Pradesh, India. The objectives of the study were to understand the concept of empowerment and analyze the impact of self-help groups on women's empowerment. Key findings included that over 53,000 self-help groups were operating in the district. Most women joined for income generation and availed loans for productive purposes. The study found that self-help group membership improved women's socioeconomic status, living conditions, and empowerment. It provided recommendations such as increasing awareness, ensuring regular group meetings, and improving access to markets, training, and credit.
Income generating activities under rural development programmesDevegowda S R
The document discusses income generating activities and rural development programmes in India. It provides details on various programmes implemented over the last four decades like PMRY, SGSY, IRDP and DWCRA to generate employment and reduce poverty. Common income generating activities promoted include dairy, goat rearing, tailoring, bakery etc. Research studies analyze the impact of programmes like SGSY in increasing incomes and empowering women members of self-help groups.
Delivery of Banking Services & products at an affordable cost to a vast section of the disadvantaged population
Activates the role of the Bank
Facilitates financial transactions among the rural poor
Provides financial literacy and education to SHG member
Creates sustainable livelihoods
Creates large market for the financial system
Self-help groups (SHGs) are informal associations composed of 10-25 local women that come together to improve their living conditions through collective efforts. SHGs function by building employment skills among poor members, resolving conflicts through discussion, and providing collateral-free loans at market rates. The groups operate as a mutual guarantee system and savings pool to give members access to affordable credit. While SHGs empower women and promote financial inclusion, their long-term sustainability and operations require continued monitoring support.
Here are the key steps for an NGO to apply for approval under Section 35AC of the Income Tax Act to provide tax exemption to donors:
1. The NGO must have a valid registration under Section 12A of the Income Tax Act.
2. The NGO must have an ongoing project related to one of the eligible sectors specified under Section 35AC, such as rural development, family planning, etc.
3. The NGO must submit an application in the prescribed form to the Secretary, Central Government along with details of the project, its estimated cost, activities, timelines etc.
4. The application is then examined by the National Committee constituted under Section 35AC which may ask for additional information or clar
The Presentation comprises all about the FPO. It covers structure, incorporation of FPO, formalities, legal compliance, working pattern, B-plan & others.
Any feedback would always be appreciated.
Women empowerment through self help groupsmahindravada
Self Helf Groups are formed to empower women. With the help of these groups, women are able to support the family economically, able to live with dignity and able to take informed decisions.
The Marthandam Experiment aimed to develop rural communities near Trivandrum, India spiritually, mentally, and physically starting in 1921. Demonstration centers were set up including night schools, weekly markets, extension work, and farms. This led to improvements in areas like education, economic opportunities, and attitudes. However, the experiment faced challenges including inadequate funding, lack of government support, and over-reliance on a single leader, which caused issues after his death. Suggestions for improvement included better knowledge transfer in agriculture and promoting sustainability, food security, and social inclusion.
SUSTAINABILITY OF SELF-HELP GROUPS IN INDIA: TWO ANALYSESDr Lendy Spires
This document summarizes two studies that analyze the financial sustainability of self-help groups (SHGs) in India. SHGs are small, community-based savings and credit groups composed primarily of poor women. The first study examines five SHG programs in different regions of India and assesses their financial viability. The second study proposes a methodology for designing financially sustainable SHG programs by analyzing four leading SHG programs. Some key findings are that well-run SHG programs can cover their costs and are financially sustainable, loan repayment rates are high, and most programs are able to reach very poor clients while avoiding issues like elite capture. However, sustainability cannot be generalized across all Indian SHG programs.
Indiamicrofinance.com I Guide To Success I Biswa MicrofinanceIndia Microfinance
http://www.indiamicrofinance.com/
A training Manual of Biswa Microfinance which provides an introduction about the organisation and a weekly planner for the company's employees.
This document provides an introduction to self-help groups (SHGs) in India. SHGs are informal associations of poor people who come together to improve their living conditions through collective efforts. They are formed to tackle problems related to poverty, illiteracy, lack of skills and access to formal credit that individuals cannot address alone. The goals of SHGs are to build trust between rural poor communities and bankers and encourage banking in hard to reach populations. SHGs function by members contributing small regular savings to a common fund and taking short term loans for economic activities. This empowers women and improves access to financial services, consumption, housing, health and government programs for marginalized groups. However, challenges remain regarding skills development, patriarch
SELF HELP GROUP: A PATHWAY TOWARDS CREDIT & ECO NOMIC EMPOWERMENT OF WOMENIAEME Publication
n the present era SHG has evolved as one of the tool to get credit facilities, savings and economic impowerment and it is also been considered as need-based programme for alleviation of poverty to the so far neglected target groups (women, poor, deprived etc.) The experience across India and other countries has shown a robust potential of Self help groups to integrate with the development issues thereby significantly impacting the lives of poor
Self-help groups (SHGs) were introduced in India to promote women's empowerment and self-sufficiency. SHGs are small community-based organizations composed of 10-20 rural poor women who voluntarily save small amounts of money together. They use their pooled savings to provide interest-free loans to members for purposes such as meeting emergency needs or starting small businesses. The objectives of SHGs are to provide women with a platform, job training, decision making skills, access to collateral-free loans, and increased confidence. Today, SHGs have become one of the largest microfinance programs in the world, helping to alleviate poverty and empower rural women economically and socially.
This document discusses a study on the role of self-help groups in empowering rural women in Tamil Nadu, India. The study examines how self-help groups provide an economic and social support system for women. Self-help groups help women start small businesses, access microloans, make independent financial contributions to their families, gain skills and confidence, and have greater freedom of movement. While self-help groups have made progress in empowering women, the conclusion notes that more still needs to be done to fully realize women's empowerment.
Self help groups are informal associations of financially weak individuals that are created to benefit group members. They are typically formed with 10-20 local people from similar backgrounds. The main purpose is to develop the socio-economic conditions of members. Government programs aim to empower women and support economic development through self help groups. Key features include small member size, common interests, equal rights, and maintaining monthly thrift savings. Self help groups provide important advantages like capacity building, mutual support, increased confidence and skills. Government schemes like DAY-NRLM provide funds and support to strengthen self help groups.
The document discusses the role of non-governmental organizations (NGOs) in supporting self-help groups (SHGs) in India. It notes that NGOs work to form SHGs, provide training, help obtain loans, and act as a link between SHGs and banks. The document also outlines benefits of the SHG model including improved access to credit for women and discipline in loan repayment. However, it mentions challenges such as lack of follow up, skills, and market access for SHG products. The document recommends that NGOs focus on leadership development, business strategies, and market-oriented approaches to strengthen SHGs.
Self Help Groups - Magic bullet to empowerment?Mouna Munshi
A summary of the dissertation done in the final year of my Masters program in Social Work.
I wanted to understand first hand if Micro Finance through Self Help Groups is really transforming and empowering women economically and otherwise.
This document provides information about women saving schemes in India. It discusses the history and guidelines for self-help groups and microfinance through women saving schemes. It outlines various government schemes to promote women saving schemes such as the Bhartiya Mahila Bank and Corporation Bank's savings scheme for women. An interview with Sangeeta Kamble, the leader of a women saving scheme called Vishwa Shanti Mandal, highlights her journey in founding the group and empowering women through financial inclusion and community support.
ROLE OF self help group in economic development-1.pdfMrParmanand
This document provides an introduction and background on self-help groups (SHGs) in India and their role in microfinance and economic development. It defines SHGs as small village-based groups, usually composed of 4-15 local women or men, who make small regular savings contributions and provide loans to members. The introduction discusses how SHGs are started by NGOs or government organizations to empower women and reduce poverty. It also explains how many Indian SHGs partner with banks for microcredit delivery and how SHGs pool savings to make members financially stable and self-employed through small business loans.
ROLE OF self help group in economic development-1.docxMrParmanand
This document provides an overview of self-help groups (SHGs) and their role in economic development. It discusses how SHGs are formed by bringing together small groups of economically homogeneous individuals who make regular savings contributions. The funds are then available for members to take loans and invest in income-generating activities. SHGs aim to empower members and alleviate poverty through collective savings, access to credit, and peer support. They have become an important microfinance model, especially in India through the SHG bank linkage program. The document also reviews shifts in development paradigms and approaches to rural development over time.
The National Rural Livelihoods Mission (NRLM) was launched in 2011 with the goal of alleviating poverty through self-managed self-help groups, financial inclusion, and sustainable livelihood opportunities. NRLM aims to cover 7 crore rural households across India. It focuses on social mobilization and building strong grassroots institutions through self-help groups. NRLM provides support structures at national, state, district and local levels to facilitate livelihood programs and access to financial services for rural communities.
The document discusses a study on empowerment of women through self-help groups in Anantapur district of Andhra Pradesh, India. The objectives of the study were to understand the concept of empowerment and analyze the impact of self-help groups on women's empowerment. Key findings included that over 53,000 self-help groups were operating in the district. Most women joined for income generation and availed loans for productive purposes. The study found that self-help group membership improved women's socioeconomic status, living conditions, and empowerment. It provided recommendations such as increasing awareness, ensuring regular group meetings, and improving access to markets, training, and credit.
Income generating activities under rural development programmesDevegowda S R
The document discusses income generating activities and rural development programmes in India. It provides details on various programmes implemented over the last four decades like PMRY, SGSY, IRDP and DWCRA to generate employment and reduce poverty. Common income generating activities promoted include dairy, goat rearing, tailoring, bakery etc. Research studies analyze the impact of programmes like SGSY in increasing incomes and empowering women members of self-help groups.
Delivery of Banking Services & products at an affordable cost to a vast section of the disadvantaged population
Activates the role of the Bank
Facilitates financial transactions among the rural poor
Provides financial literacy and education to SHG member
Creates sustainable livelihoods
Creates large market for the financial system
Self-help groups (SHGs) are informal associations composed of 10-25 local women that come together to improve their living conditions through collective efforts. SHGs function by building employment skills among poor members, resolving conflicts through discussion, and providing collateral-free loans at market rates. The groups operate as a mutual guarantee system and savings pool to give members access to affordable credit. While SHGs empower women and promote financial inclusion, their long-term sustainability and operations require continued monitoring support.
Here are the key steps for an NGO to apply for approval under Section 35AC of the Income Tax Act to provide tax exemption to donors:
1. The NGO must have a valid registration under Section 12A of the Income Tax Act.
2. The NGO must have an ongoing project related to one of the eligible sectors specified under Section 35AC, such as rural development, family planning, etc.
3. The NGO must submit an application in the prescribed form to the Secretary, Central Government along with details of the project, its estimated cost, activities, timelines etc.
4. The application is then examined by the National Committee constituted under Section 35AC which may ask for additional information or clar
The Presentation comprises all about the FPO. It covers structure, incorporation of FPO, formalities, legal compliance, working pattern, B-plan & others.
Any feedback would always be appreciated.
Women empowerment through self help groupsmahindravada
Self Helf Groups are formed to empower women. With the help of these groups, women are able to support the family economically, able to live with dignity and able to take informed decisions.
The Marthandam Experiment aimed to develop rural communities near Trivandrum, India spiritually, mentally, and physically starting in 1921. Demonstration centers were set up including night schools, weekly markets, extension work, and farms. This led to improvements in areas like education, economic opportunities, and attitudes. However, the experiment faced challenges including inadequate funding, lack of government support, and over-reliance on a single leader, which caused issues after his death. Suggestions for improvement included better knowledge transfer in agriculture and promoting sustainability, food security, and social inclusion.
SUSTAINABILITY OF SELF-HELP GROUPS IN INDIA: TWO ANALYSESDr Lendy Spires
This document summarizes two studies that analyze the financial sustainability of self-help groups (SHGs) in India. SHGs are small, community-based savings and credit groups composed primarily of poor women. The first study examines five SHG programs in different regions of India and assesses their financial viability. The second study proposes a methodology for designing financially sustainable SHG programs by analyzing four leading SHG programs. Some key findings are that well-run SHG programs can cover their costs and are financially sustainable, loan repayment rates are high, and most programs are able to reach very poor clients while avoiding issues like elite capture. However, sustainability cannot be generalized across all Indian SHG programs.
Indiamicrofinance.com I Guide To Success I Biswa MicrofinanceIndia Microfinance
http://www.indiamicrofinance.com/
A training Manual of Biswa Microfinance which provides an introduction about the organisation and a weekly planner for the company's employees.
This document provides an overview of the Service Management Project for Group 3 at Ujjivan Financial Services. It includes an agenda that covers information about MFIs, an introduction to Ujjivan, the nature and types of services offered, strategic vision, growth rate, service blueprint, demand forecasting and capacity management, and HR policies. Ujjivan is an Indian MFI that provides collateral-free loans and other financial services to low-income customers. It has a presence in 24 states with over 6,500 employees. The document outlines Ujjivan's loan products, service delivery processes, strategies for growth and customer retention, and approaches to demand forecasting, capacity management, and developing employees.
This document provides an overview of self-help groups (SHGs) in India and West Bengal. It discusses the genesis of SHGs as a way to provide financial access to the poor. It outlines the key strategies and characteristics of SHGs, and provides statistics on the progress and impact of SHGs. Specifically, it details coverage, savings, credit disbursed, and non-performing assets across various Indian states. The document also notes challenges like the supply-demand mismatch for credit and the need for a strategic framework to ensure SHGs' future sustainability and positive impact.
The document outlines major milestones in recognizing and promoting women's human rights through the United Nations from 1945 onwards, including establishing committees, adopting conventions, and holding global conferences. Key events were the UN charter in 1945, CEDAW in 1979, conferences in Mexico City in 1975, Copenhagen in 1980, Nairobi in 1985, and Beijing in 1995 which established the Platform for Action addressing critical areas of concern for women.
This document provides information on self-help groups (SHGs) in Rajasthan, India. It discusses:
- The structure and requirements of SHGs, which are typically constituted of 10-20 women from similar backgrounds.
- The status of SHGs in Rajasthan, with over 250,000 formed but only around 100,000 functional.
- The three approaches to forming SHGs - by officials, NGOs, or members themselves - and why the member-led approach is most sustainable.
- Issues around training, financing, and marketing for SHG products that need to be addressed, as well as the potential for further expansion and integration across departments.
The document discusses the importance of self-help groups (SHGs) in improving nutrition and food security, especially for women and children in India. It notes that over 1/3 of the population suffers from malnutrition. It then provides guidance on forming effective SHGs, including ensuring homogeneity among members, regular savings contributions and meetings, democratic decision-making, and maintaining proper records. SHGs can then be linked to financial institutions to help improve economic conditions. The role of facilitators in assisting SHG formation and management is also outlined.
The document summarizes the history and functions of Panchayati Raj, India's system of local self-government. Key points include:
- Panchayati Raj was established in 1957 to provide democratic local governance through village councils at three levels - village, block, and district.
- The 73rd amendment in 1993 gave constitutional status to Panchayati Raj, mandating elections every 5 years and reserving 1/3 of seats for women.
- Panchayat Samitis at the block level implement development schemes related to agriculture, education, infrastructure, and industries. Their main sources of funding are state government grants and loans.
- The updated system strengthened the three-tier structure
This document presents information on microfinance in India. It discusses how microfinance provides financial services like credit, savings and insurance to poor individuals. It notes that microfinance aims to improve livelihoods through capital provision. The document provides statistics on microfinance in India and outlines the roles of various regulatory bodies. It discusses self-help groups and their importance in poverty alleviation. It also examines the role of banks in providing assistance to microfinance institutions and some problems faced by these institutions. Finally, it proposes various solutions and concludes by emphasizing the potential of self-help groups and microfinance to reduce poverty in India.
This document is a research project report submitted in partial fulfillment of an MBA degree. It examines the impact of microfinance on the living standards, empowerment and poverty alleviation of poor women in North India. The report includes a declaration by the student, acknowledgements of those who assisted and supervised the project, and an introduction providing context on microfinance and its goals. It also outlines the chapters to follow, which will cover a literature review on previous research conducted on microfinance and its effects, as well as subsequent chapters analyzing and discussing the results of the student's case study research.
Trainers Manual on SHG formation MK SINHAmanojsinha2
This document is a trainer's manual on forming self-help groups. It provides an introduction to key concepts like what defines a group, the importance of groups, and what constitutes a self-help group. Specifically, it outlines that a self-help group is a voluntary association of 10-20 people, usually from weaker socioeconomic strata, who come together to pool savings and other resources regularly to meet member needs. Forming women's self-help groups is emphasized as women are often more marginalized and disciplined savers who can benefit their entire households. A story of a woman named Sarala is also provided as an example of how self-help group participation can empower individuals and families economically.
This document discusses different types of groups and communities that social workers may engage with. It describes open groups that have changing membership and closed groups with fixed membership. Treatment groups focus on interactions between members to provide feedback and learning. Task groups work together on specific projects to meet client, organizational, or community needs. Examples include forums, committees, work teams, and social action groups. Self-help groups are informal associations that empower members to collectively improve living conditions through activities like microfinance. Joint liability groups are credit-oriented groups formed to obtain loans from banks.
This document provides guidance on promoting and operationalizing self-help groups (SHGs) in Madhya Pradesh, India. It discusses the key components of the SHG model including group formation processes, maintenance systems, monitoring, and indicators of group health. The document outlines stages of group formation, roles and functions of SHGs, and processes for meetings, savings, and lending. It emphasizes building the capacity of community resource persons and SHG members through training.
Social mobilization is an approach that involves deliberate community participation to organize toward a common purpose. It is defined as a process of building community capabilities to plan, manage and control their own development programs. The key components of social mobilization are growth, empowerment, transformation of social institutions, enhancement of ecological resources, and cultural innovation. Social mobilization benefits communities by alleviating poverty through self-sufficiency, promoting democratic governance through participatory decision making, helping manage resources and fight environmental degradation, and organizing people to address common problems.
1) The document analyzes the role of microfinance and self-help groups (SHGs) in empowering women in Kollam district, Kerala through a case study.
2) It finds that SHG membership helped increase women's income generation, economic status, and decision making power within their families and communities.
3) The study concludes that microfinance through SHGs is an effective tool for reducing poverty, empowering women, and promoting sustainable development in villages.
The presentation looks into the aspect of doing group work with women. The things explained in here are that of the objectives of group work with women, its formation stages etc..
WOMEN SELF HELP GROUPS AND SUSTAINABILITY INDICES: A STUDY OF SUCCESSFUL SELF...IAEME Publication
This document summarizes a research study that analyzed various sustainability indices of successful self-help groups in Uruli Kanchan Village, Pune district, India. The study identified key indices that influence the sustainability of self-help groups, including leadership index, meeting index, record keeping index, conflict index, decision making index, goal clarity index, group climate index, and communication index. Statistical analysis of these indices for 50 self-help groups found that leadership index, meeting index, record keeping index, decision making index, and communication index aligned closely with ideal sustainability, while conflict index and group climate index showed some deviation. The study provides insight into factors that promote long-term sustainability of self-help groups.
This document discusses leadership training and development in the context of agribusiness. It begins by distinguishing between leadership and management, noting that leaders effect positive change while managers focus on controlling and problem-solving. It then covers various theories and styles of leadership. The document also discusses agriculture and agribusiness, characteristics of agribusiness leaders, and the roles of agricultural extensions and farmer organizations. It provides steps for establishing and strengthening farmer organizations. The overall aim is to empower individuals and organizations in agribusiness through leadership development.
Social mobilization is an approach that empowers communities to participate in their own development. It involves deliberate processes to involve community members, leaders, and groups in organized efforts toward a common purpose. The document outlines the components, benefits, steps, and advantages of social mobilization. Components include empowering communities and transforming institutions equitably. Benefits include poverty alleviation, democratic governance, and conflict prevention. NSTP students act as catalysts by guiding community members to form self-help groups, develop skills, and implement small entrepreneurial activities.
Self-help groups (SHGs), also called sanghas, are voluntary associations of people that function democratically to achieve collective goals. Organizing people with disabilities (PWDs) into sanghas unites and empowers them by allowing them to support each other, access resources, and advocate for their rights. The overall purpose of SHGs is to empower PWDs through collective action and responsibility for their own development in order to improve their quality of life. Key tasks to sustain sanghas include strengthening solidarity, determining goals and rules, accessing government programs, and promoting livelihood and advocacy activities.
The document discusses strategies for empowering communities through self-help groups (SHGs). It explains that SHGs organize women into savings groups to build economic self-reliance and decision making power. SHGs are clustered into higher levels to take on larger issues. Partners reported that SHGs improved food security, education, health and social cohesion for thousands of households in South Africa. Challenges included high turnover of community facilitators and limited funding, which partners are working to address.
This document provides guidelines for a 12th grade economics project on self-help groups. It outlines important points to include such as choosing an interesting topic, keeping the project short and precise, including diagrams or graphs, and submitting on time. It also lists the typical sections of an economics project such as the title, objectives, methodology, findings, and references. An example project on self-help groups is then provided, covering their meaning and evolution in India, functions, need, advantages, problems, and examples from different states.
How to-lead-collective-impact-working-groups-1Mr Nyak
This document provides guidance for co-chairs of working groups in collective impact initiatives. It discusses the critical role of working groups and their co-chairs in driving implementation of strategies to achieve the initiative's goals. It outlines characteristics and responsibilities of effective working group co-chairs and provides templates and recommendations for building membership, planning and running effective meetings, fostering collaboration, applying systems thinking, engaging the community, and using data and learning. The document is intended to equip working group co-chairs with tools and best practices to lead their groups in making progress on complex social issues.
This document provides an organizing manual for Organizing for Action (OFA) volunteers. It covers OFA's mission and culture, building strategic issue campaigns, developing OFA chapters and teams, and methods for building capacity such as using personal stories, 1:1 meetings, trainings, and data. The manual is intended to provide context on how OFA develops strategy and how volunteers can adapt strategies locally. It shares best practices in issue organizing and building grassroots advocacy campaigns that are people-centered and metrics-driven. The overall goal is to engage communities on issues that matter through their personal stories, build relationships between volunteers, and hold elected officials accountable to constituents.
This document discusses a board development initiative called Nourishing Tomorrow's Leaders that aims to increase diversity and inclusiveness on nonprofit boards. The initiative was developed by a group of foundations and community leaders in Syracuse to address research finding that most nonprofit boards lack diversity. It involves training programs to educate new and prospective board members on their roles and responsibilities to enhance leadership in the community. The expected participants are those interested in giving back through board service and supporting diversity. Upon completing the course, participants will receive a Board Certification certificate.
Isean 2012 cbo training module on leadership & governanceclac.cab
12: SWOT Analysis of
the CBOs
60 minutes
(9:00 – 10:00
AM)
• Group Work
• Presentation
and Discussion
Participants
Facilitator
Coffee/Tea Break: 15 minutes (10:00 – 10:15 AM)
To enable the participants
to appreciate the
importance of strategic
planning and the process
involved.
13: Conceptualizing
Strategic Planning
45 minutes
(10:15 – 11:00
AM)
• Input
• Group Work
Facilitator
Lunch Break: 60 minutes (12:00 – 1:00 PM)
Energizer - 10
The document discusses creating a helping organization to address employees' needs. It proposes five layers of help: (1) Community help through social networks and teams; (2) Barefoot help through managers' coaching; (3) Qualified help from trained leaders; (4) Professional executive coaching; and (5) Referral help through employee assistance programs. Each layer addresses needs from informal to complex, building a culture where employees feel supported in their work and personal lives to achieve their full potential.
An organization that provides multiple layers of help to employees. The five layers include:
1. Community help from coworkers and managers to feel supported.
2. Barefoot help is basic coaching from all managers.
3. Qualified help provides formal training to leaders to develop others.
4. Professional coaching helps executives improve performance and satisfaction.
5. Referral help through employee assistance programs addresses personal issues.
Together these layers aim to help employees with life challenges, maximize their potential, and create a culture of support.
The document summarizes the mission and activities of DSPAM, a Minnesota chapter of the National Alliance for Direct Support Professionals that advocates for direct care workers. DSPAM works to improve training, compensation and recognition for direct support professionals through initiatives like surveys of DSPs, conferences and developing a strategic plan focused on key issues for 2008 like governance training and boosting membership.
The document provides an overview of community organizing, including its key components, characteristics, concepts, and terms. It discusses that community organizing is a process by which people are brought together to act in their common self-interest. It aims to increase collective power and work for social change by bringing together the talents, resources, and skills of community members. The document also outlines 10 main concepts of community organizing, including power, relationship building, leadership development, and winning. It describes the different types of communities and strategies for addressing community problems.
This is Gopika Kanta Dutta ails GK Dutta, Social Worker by Passion and Consultant by Profession. I am delight to present you my “Annual Activity Report-2019”.
This Annual report is a comprehensive report of my legal services related activities throughout the preceding year. This report is intended to give you the details information about the activities achieved by me.
TIMELINE OF PUNAM DAS MURDER CASE (Bengali)GK Dutta
১০ মার্চ ২০১৫ বিকাল ৩ টার দিকে তার শ্বশুর বাড়িতে থাকাকালীন পুনম দাস তার শ্বশুর বাড়ির মেঝেতে পুড়ে মারা গিয়েছিলেন। তারপরে পুনম দাসের বাবা-মা তার মেয়ের শাশুড়ি ও ননদের কাছে তার মেয়ের মৃত্যুর কারণ সম্পর্কে জানতে চান কিন্তু তারা কোনও সন্তোষজনক জবাব দিতে ব্যর্থ হন।
On 10th March 2015 Punam Das Brutally murdered by husband’s family by setting her on fire. Deadbody lying on the floor of the hut of her matrimonial home.
I am delight to present you my “Annual Activity Report-2017”. I am Gopika Kanta Dutta ails GK Dutta, Social Worker by Passion and Consultant by Profession. It was 2001 when I was started my journey as a Social Worker and then there are the 17 years and I have continued my Social and Human Rights Activities and through these journey, had a great privilege to working with various National and International Voluntary and Human Rights organisations.
I am delight to present you my “Annual Activity Report-2018”. I am Gopika Kanta Dutta ails GK Dutta, Social Worker by Passion and Consultant by Profession. It was 2001 when I was started my journey as a Social Worker and then there are the 17 years and I have continued my Social and Human Rights Activities and through these journey, had a great privilege to working with various National and International Voluntary and Human Rights organisations.
RBI GUIDELINES: GUIDELINES FOR COMPROMISE SETTLEMENT OF DUES OF BANKS AND FIN...GK Dutta
As you are aware, the Indian Banks’ Association (IBA) has been issuing guidelines to member institutions for taking up of cases for settlement through Lok Adalats. The position
was reviewed and it was observed that banks have not taken adequate advantage of the Lok Adalats for compromise settlement of their NPAs. There are certain advantages in using the forum of Lok Adalats by banks and financial institutions in compromise settlement of their NPAs. There are no court fees involved when fresh disputes are referred to it. It can take cognizance of any existing suit in the court as well as look into and adjudicate upon fresh disputes. If no settlement is arrived at, the parties can continue with court proceedings. Its decrees have legal status and are binding. It has, therefore, been decided that with a view to making increasing use of the forum of Lok
Adalats to settle banking disputes involving smaller amounts, banks and financial institutions should follow the following guidelines for implementation.
RBI GUIDELINES: ONE TIME SETTLEMENT OF NPAS DATED 16-MARCH-2018GK Dutta
As per instructions of Reserve Bank of India (RBI), banks are required to have a loan recover policy, which may cover, inter
alia, negotiated settlements of NPAs. As per inputs received from Public Sector Banks (PSBs), all PSBs have One Time
Settlement (OTS) schemes. These OTS schemes are in pursuance of Board-approved policies of banks, and are typically
oriented towards sectors such as agriculture, Micro Small and Medium Enterprises (MSMEs), weaker sections and
education loans, and typically have an upper limit on the amount of NPA.
RBI GUIDELINES: RECOVERY AGENTS ENGAGED BY BANKS!GK Dutta
In view of the rise in the number of disputes and litigations against banks for engaging recovery agents in the recent past, it is felt that the adverse publicity would result in serious reputational risk for the banking sector as a whole. A need has therefore arisen to review the policy, practice, and procedure involved in the engagement of recovery agents by banks in India. In this backdrop, Reserve Bank issued draft guidelines which were placed on the web-site for comments of all concerned. Based on the feedback received from a wide spectrum of banks / individuals / organizations, the draft guidelines have been suitably revised and the final guidelines are as follows:
RBI GUIDELINES: CREDIT CONTROL AND OTHER MEASURES FEBRUARY 2003GK Dutta
1. The Reserve Bank of India issued revised guidelines for compromise settlement of chronic Non-Performing Assets (NPAs) of Primary (Urban) Co-operative Banks.
2. The revised guidelines extend the cutoff date for NPAs eligible for one-time settlement to March 31, 2000. NPAs of Rs. 10 crore or less that became doubtful or loss assets by this date would be eligible.
3. State governments were requested to issue necessary notifications to urban cooperative banks within their jurisdiction adopting these non-discretionary guidelines for settling eligible NPAs in a timely, uniform manner.
RBI GUIDELINES: RESOLUTION OF STRESSED ASSETS DATED 12 FEBRUARY 2018GK Dutta
The Reserve Bank of India has issued various instructions aimed at the resolution of stressed assets in the economy, including the introduction of certain specific schemes at different points of time. In view of the enactment of the Insolvency and Bankruptcy Code, 2016 (IBC), it has been decided to substitute the existing guidelines with a harmonised and simplified generic framework for resolution of stressed assets. The details of the revised framework are elaborated in the following paragraphs.
The Law Commission of India was asked to consider section 124A of the Indian Penal Code, 1860 which deals with sedition. Accordingly, a study was undertaken to examine the various pros and cons of the provision. The subject was discussed by the Commission on several occasions. In its meeting held on 5 July 2018 and it was that for making the final recommendations, more discussions need to take place. Hence, it has been decided to put up a Consultation Paper in public domain, for wider discussions.
This Consultation Paper contains the various aspects of the sedition law as it existed in the pre-independence era, in the international jurisdiction and the present scenario, in the country. The Commission solicits the valuable suggestions from the cross section of the society.
A 10-day mass awareness programme ‘Connecting to serve’, including a door-to-door campaign. ‘You are not alone’, a specialised programme for senior citizens and a toll free legal aid helpline are other recent initiatives by the NALSA.
As on 03rd March 2018 around 2.30 PM a sudden Fire Incident took place at Huplong Bazar (Under Jubarajnagar RD Block, Dharmanagar, North Tripura), where as many as 110 Shops burned to ashes along with all the goods and furniture’s.
GUIDELINES OF EARTH DAY CELEBRATION 2016 SCHEME FOR NGOGK Dutta
The document provides information about Earth Day 2016 celebrations in India. It announces that the theme of Earth Day 2016 is "Caring Mother Earth" and provides guidelines for schools, colleges, and non-governmental organizations to participate through activities like debates, essays, drawings, cleanups, and more centered around environmental topics. Participants will be judged in different age groups and the best entries will receive prizes to be awarded on July 27th. All organizers must submit reports and utilization certificates to the Ministry of Environment by February 15th, 2016.
NGO SCHEMES GUIDELINES OF DEPARTMENT OF FAMILY WELFARE.GK Dutta
In pursuance of efforts towards population stabilization and Reproductive & Child Health, aiming at sustainable development and inculcating a meaningful partnership with Non-Governmental Organizations (NGOs) as one of the strategic themes, envisaged in the National Population Policy – 2000, the Government of India after broad-based consultation with all stakeholders has evolved the revised guidelines. These are exhaustive and more focused in approach to attain the laid down objectives of programmes.
MINISTRY OF WATER RESOURCES-GUIDELINES FOR GRANTS-IN-AID TO NGOSGK Dutta
The Ministry proposes to utilize the services of reputed, non-profit, secular NGOs with proven track record in identified fields of activity relating to the water resources sector. NGOs working at the national, state and the district levels will be identified through a process of registration based on their track record. An illustrative list of the type of projects in which NGOs could be involved are given in Annexure-A.
INTERNSHIP APPLICATION FORM FOR VOLUNTARY ORGANIZATIONGK Dutta
This document is an internship application form for a voluntary organization. It requests information about the organization such as its name, nature, registration details, year established, operational area, budget, and contact information. It also asks the applicant to provide details about the proposed internship such as duration, dates, location, travel arrangements, accommodation, and a declaration signed by the head of the organization. The form aims to collect essential details about both the organization and internship to process the application.
The Jan Aushadhi scheme launched by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Govt. of India aims to make available quality generic medicines at affordable prices to all through special outlet known as Jan Aushadhi store opened/to be opened in each district of all the States. The new business plan approved by the Department of Pharmaceuticals in August, 2013 brought out it no. of changes to make the campaign a real success.
The Jan Aushadhi scheme launched by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Govt. of India aims to make available quality generic medicines at affordable prices to all through special outlet known as Jan Aushadhi store opened/to be opened in each district of all the States. The new business plan approved by the Department of Pharmaceuticals in August, 2013 brought out it no. of changes to make the campaign a real success.
SCHEME OF PREVENTION OF ALCOHOLISM AND SUBSTANCE (DRUG) ABUSE, 2015GK Dutta
The approach of this Scheme is to provide the whole range of services including awareness generation, identification, counselling, treatment and rehabilitation of addicts through voluntary and other organizations. With a view to reducing the demand for and consumption of alcohol and dependence producing substances, the thrust would be on preventive education programmes and Whole Person Recovery of the drug dependent persons.
Originally presented at XP2024 Bolzano
While agile has entered the post-mainstream age, possibly losing its mojo along the way, the rise of remote working is dealing a more severe blow than its industrialization.
In this talk we'll have a look to the cumulative effect of the constraints of a remote working environment and of the common countermeasures.
Impact of Effective Performance Appraisal Systems on Employee Motivation and ...Dr. Nazrul Islam
Healthy economic development requires properly managing the banking industry of any
country. Along with state-owned banks, private banks play a critical role in the country's economy.
Managers in all types of banks now confront the same challenge: how to get the utmost output from
their employees. Therefore, Performance appraisal appears to be inevitable since it set the
standard for comparing actual performance to established objectives and recommending practical
solutions that help the organization achieve sustainable growth. Therefore, the purpose of this
research is to determine the effect of performance appraisal on employee motivation and retention.
Org Design is a core skill to be mastered by management for any successful org change.
Org Topologies™ in its essence is a two-dimensional space with 16 distinctive boxes - atomic organizational archetypes. That space helps you to plot your current operating model by positioning individuals, departments, and teams on the map. This will give a profound understanding of the performance of your value-creating organizational ecosystem.
Colby Hobson: Residential Construction Leader Building a Solid Reputation Thr...dsnow9802
Colby Hobson stands out as a dynamic leader in the residential construction industry. With a solid reputation built on his exceptional communication and presentation skills, Colby has proven himself to be an excellent team player, fostering a collaborative and efficient work environment.
Comparing Stability and Sustainability in Agile SystemsRob Healy
Copy of the presentation given at XP2024 based on a research paper.
In this paper we explain wat overwork is and the physical and mental health risks associated with it.
We then explore how overwork relates to system stability and inventory.
Finally there is a call to action for Team Leads / Scrum Masters / Managers to measure and monitor excess work for individual teams.
Ganpati Kumar Choudhary Indian Ethos PPT.pptx, The Dilemma of Green Energy Corporation
Green Energy Corporation, a leading renewable energy company, faces a dilemma: balancing profitability and sustainability. Pressure to scale rapidly has led to ethical concerns, as the company's commitment to sustainable practices is tested by the need to satisfy shareholders and maintain a competitive edge.
A team is a group of individuals, all working together for a common purpose. This Ppt derives a detail information on team building process and ats type with effective example by Tuckmans Model. it also describes about team issues and effective team work. Unclear Roles and Responsibilities of teams as well as individuals.
Designing and Sustaining Large-Scale Value-Centered Agile Ecosystems (powered...Alexey Krivitsky
Is Agile dead? It depends on what you mean by 'Agile'. If you mean that the organizations are not getting the promised benefits because they were focusing too much on the team-level agile "ways of working" instead of systemic global improvements -- then we are in agreement. It is a misunderstanding of Agility that led us down a dead-end. At Org Topologies, we see bright sparks -- the signs of the 'second wave of Agile' as we call it. The emphasis is shifting towards both in-team and inter-team collaboration. Away from false dichotomies. Both: team autonomy and shared broad product ownership are required to sustain true result-oriented organizational agility. Org Topologies is a package offering a visual language plus thinking tools required to communicate org development direction and can be used to help design and then sustain org change aiming at higher organizational archetypes.
A presentation on mastering key management concepts across projects, products, programs, and portfolios. Whether you're an aspiring manager or looking to enhance your skills, this session will provide you with the knowledge and tools to succeed in various management roles. Learn about the distinct lifecycles, methodologies, and essential skillsets needed to thrive in today's dynamic business environment.
Integrity in leadership builds trust by ensuring consistency between words an...Ram V Chary
Integrity in leadership builds trust by ensuring consistency between words and actions, making leaders reliable and credible. It also ensures ethical decision-making, which fosters a positive organizational culture and promotes long-term success. #RamVChary
Public Speaking Tips to Help You Be A Strong Leader.pdfPinta Partners
In the realm of effective leadership, a multitude of skills come into play, but one stands out as both crucial and challenging: public speaking.
Public speaking transcends mere eloquence; it serves as the medium through which leaders articulate their vision, inspire action, and foster engagement. For leaders, refining public speaking skills is essential, elevating their ability to influence, persuade, and lead with resolute conviction. Here are some key tips to consider: https://joellandau.com/the-public-speaking-tips-to-help-you-be-a-stronger-leader/
Sethurathnam Ravi: A Legacy in Finance and LeadershipAnjana Josie
Sethurathnam Ravi, also known as S Ravi, is a distinguished Chartered Accountant and former Chairman of the Bombay Stock Exchange (BSE). As the Founder and Managing Partner of Ravi Rajan & Co. LLP, he has made significant contributions to the fields of finance, banking, and corporate governance. His extensive career includes directorships in over 45 major organizations, including LIC, BHEL, and ONGC. With a passion for financial consulting and social issues, S Ravi continues to influence the industry and inspire future leaders.
Sethurathnam Ravi: A Legacy in Finance and Leadership
MANAGEMENT OF SELF HELP GROUPS
1. 1
Management of Self Help Groups
State Institute of Rural Development (SIRD)
G.S. Road, Khanapara
Guwahati 22
April 2011
2. 2
Foreword
Self Help Group (SHG) Movement in India has been recognized as an
effective strategy for mobilization and empowerment of rural people ,
particularly poor women and other marginalized groups.
Though the access to credit has been seen as a motivational factor behind
the formation of Self Help Groups, Self Help Groups have a potential that
goes beyond mere economics of loan management . Self Help Groups are
involved in various Social Activities which is very much important in their
empowerment process. Grass root level Organizations like SHGs ensure
people’s participation in the development process. They provide a forum in
which people can meet on regular basis and discuss the issues and concerns
that they face in their day to day life.
In the above background, understanding the concept, objectives and various
management techniques of Self Help Groups (SHGs) by the members is very
much important. So, for imparting training to the members of Self Help
Groups (SHGs) with trainee centered methods and media and facilitate
members to learn more about the group dynamics, the State Institute of
Rural Development (SIRD), Assam has prepared this booklet for trainees ,
officials working at different levels and Self Help Group promoting
institutions.
3. 3
Content
Chapters Headings Page No.
1 Strengthening Self Help Groups
through Capacity Building
4
2 Decision Making and Conflict
Resolution in Self Help Groups &
Village Organizations
26
3 Index of Sustainability of Self Help
Groups & Village Organizations
33
4 Social Capital 48
5 Frequently Asked Questions – on
Savings and Group Meetings
51
6 Financial Management of a Group 56
Reference Books 70
4. 4
Management of Self Help Groups
This Hand Book is prepared for use in training programmes under various
subjects on Rural Development & Panchayati Raj
By
Sri A. M. M. Zakir
Head- Training and Research
SIRD, Assam
Assisted by
Smt. Nomita Baruah
Jr. Lecturer, SIRD
Under the Guidance of
Sri K. Kalita
Director & Executive Head, SIRD, Assam
April 2011
5. 5
CHAPTER-1
Strengthening Self Help Groups through Capacity Building
Since year 1999, a large number of rural people particularly women have been
mobilized into Self Help Groups in Assam. This has built the social capital among the
rural people in the State. SHG movement in Assam has not only provided economic
benefit to its members but more importantly created viable social capital in the form of an
empowered community. Most significant social aspects wherein rural women in Assam
has made tremendous progress are:-
Increase in overall awareness level about their status and approaches for
development.
Social empowerment in terms of improvement in their confidence, self
perception, communication skill and other behavioral changes.
Participation in developmental activities (participation of women SHGs in Gram
Sabhas have increased manifold).
Mobility of rural women has increased for various socio- economic
developmental activities.
Decision making capacity at household level as well as at community level has
increased and become more meaningful.
Bargaining and receiving capacity of rural women have increased thereby making
socio- economic programmes and facilities more accessible to rural poor.
With the above background it has become convenient to consolidate the Self Help
Groups already developed in the State into village organization and other federations.
However , critical gaps have been observed in the management of day to day activities of
the Self Help Groups relating to different group dynamics, organizational management,
financial management, arrangement of livelihood activities, internal monitoring,
accountability etc. Intensive and extensive training programmes involving community
resource persons, coordinators etc. will have to be organized existing as well as new Self
6. 6
Help Groups, so that village level organizations (Primary Federations) can be
conveniently formed with the help of these groups.
Intensive training programmes will have to be organized in decentralized manner
covering all the aspects given below in the module. The module will also help in the
capacity building of the office bearers and members of new village organizations to be
developed.
The capacity building covering the following aspects will strengthen both old and
new groups. This will facilitate the formation of village organizations in subsequent
stages, Training will be imparted in a participatory manner through interactive process.
That is why some key questions have been prepared to facilitate the discussion during the
training process.
PRINCIPLES OF Self Help Groups:
1. Peer principle – Social Homogeneity
2. Self Determination
3. Built on inner strength
4. Services are free and reciprocal
5. Social support
6. Self Help solution
7. Internal focus rather than experts.
APPLICABILITY OF CONCEPTS:
1. Welfare dependence can be reduced.
2. Sharing- Group interaction – Self Determination
3. Resurgence of Democratic life – effect to service – vehicle for demanding the
appropriate role of the authority.
STAGES IN GROUP FORMATION :
1. Forming – Habits of coming together suspicions, fear and anxiety of members
discussed.
2. Storming :
7. 7
Individual interest and group interest surface
Procedure rules and rules established
Leadership will emerge.
3. Norming : Trust among group members will develop.
4. Performing : Group becomes operational
MOBILIZATION:
1. Essentially attitudinal commitment to action.
2. There should be a means to translate this commitment to action .
3. Existence of values and goals.
4. Collective means of achieving.
ESSENTIALS OF THE SELF HELP GROUP PHENOMENON :
1. Self Help Groups are voluntary
2. Groups are small formed for mutual help and the accomplishment of a special
task.
3. Homogeneous groups come together for a common need.
4. Emphasize face to face social interaction
5. All persons assume responsible.
6. Provide material assistance and emotional assistance.
7. Promulgate an ideology or values.
8. Members attain an enhanced sense of personal identity.
FACTORS INFLUENCING GROUP FORMATION AND SUSTAINABILITY:
1.Some “felt need” for group formation and identification with the objective on group
formation.
1. Some sort of “homogeneity” among the members.
2. Feeling of “Solidarity” among group members .
3. Existence and evolution of “Byelaws rules and regulations” and their enforcement
by members themselves.
4. Participation of all members and democracy in group functioning.
8. 8
5. Quality of “leadership” and the procedure of selecting leaders.
6. Substantial Private net “Benefits” from collective actions vis- a vis individual
action.
7. “Transparency” in operations and functioning of groups.
Why Self Help Group is needed :
The basic idea behind forming a voluntary and homogeneous group, which is
bound by affinity, is to share responsibility and authority between members so as
to achieve their objectives and remove obstacles to progress that would be
difficult to achieve individually.
Key Questions :
What has been the benefit to each member of the Self Help Group?
What is the contribution of each member to the Group ?
What happened when people came together with similar problems?
Aims and Objectives of an Self Help Group :
Developing the Aims and objectives of the Self Help Group.
Key Questions :
What is your objective in life ?
Why have you joined this SHG ?
What do you wish to achieve through this Self Help Group?
Wow will your SHG help in the development of the village ?
Indicative Answers are :
Quick access to credit to meet our loan requirements.
To enhance our confidence and skills.
To increase our awareness on various local institutions and schemes.
9. 9
To initiate and implement village development activities.
To create awareness on the mobilization of the resources and their optimum use.
To support each other as members of a group.
To reduce poverty levels in the village.
To increase our knowledge of latest technologies in agriculture, animal husbandry
etc.
To establish linkages and networking with other institutions.
Structure of a Self Help Group:
Most SHGs which are functioning well have the following structural features:
Size-10
All are poor
Bound by affinity
Rotational leadership
Voluntary in nature
Socially viable institution
Democratic nature
Non- partisan nature
Informal nature
Rules and regulations
Books and accounts
Functions of a Self Help Group :
Conducting weekly meetings: weekly meeting are essential because :
It is easier to save smaller amounts frequently, rather than saving a large amount
at one time
Loans may be sanctioned more frequently
Issues do not have wait for as long as a month or more, in order to get resolved.
Savings
Lending and repayment
10. 10
Maintaining books of accounts and records: Books and accounts are needed
because:
They promote accountability within the SHG and to external world.
When an SHG grows big in terms of numbers and size of transactions , it is
difficult for members to mentally keep track of all the transactions that have been
made.
They are necessary for linkages with other institutions , such as banks.
Common action Programmes:
Linkages and Networking
Training and Capacity building
The importance of Regular / Weekly Meetings:
Regular weekly meetings are important because they :
Provide a regular and frequent opportunity for SHG members to interact with
each other.
Inculcate discipline
Provide scope for regular financial transactions, such as saving, lending loan and
interest repayment.
Allow for periodic monitoring and follow up of loan repayment
Provide an opportunity for the capacity building of the members and for
developing their communication skills.
Provide a forum for identifying , discussing and taking up community action
programmes.
Key Questions :
Why are regular / weekly meetings important ?
What might happen if meetings are held less frequently ?
What happens if meetings are irregular?
Necessary conditions for conducting a meeting :
The following are the important conditions for conducting a meeting :
11. 11
A place for the meeting, accessible to all
Lighting facility in case the meeting is held at night
A fixed time when people will meet
Mats or durries o sit on.
A trunk or box to keep all the books of accounts, which may also be used as a
makeshift table by the bookkeeper.
Presence of all the members
Presence of all the representatives
Books and documents, pens and a book writer
An agenda to be discussed in the meeting
Key Questions :
What are the necessary conditions for a meeting to be successful?
How to Conduct an SHG meeting :
The following process should be followed while conducting a meeting:
Sit in a circle
Sing a prayer or group song
Select a chairperson
Welcome address
Record the attendance
Set the agenda
Review the previous meeting’s minutes.
Maintain discipline throughout – group members should ensure that rules and
regulations are followed throughout the meeting.
Complete financial transactions related to savings, repayment, lending etc.
Ensure that all issues on the agenda are discussed.
Ensure that all members participate in the decision making
During every meeting the SHG members must make it a point to discuss and act
upon at least one issue other than saving and credit
Record proceedings during the meeting itself and read them out to all members
All members must sign in the resolution book.
12. 12
Vote of thanks.
Procedure for conducting Group meeting
The members together decide the date, venue and time of the meeting.
Each meeting is presided over by a different member.
Each member should attend the meeting with her personal pass book .
When one person is speaking, another should not.
Those who want to speak should first raise their hands
Each member should get an opportunity to speak.
All members should attend the meetings.
Those who can’t should intimate in advance
Those who come late to the meetings should be fined
Members should sit in a circle.
The meeting should begin with a song or prayer.
First the attendance roll call should be taken. An agenda should be decided upon.
The meeting should be conducted as per the agenda.
First of all, the decisions taken in the previous meeting should be reviewed.
Each member should pay the savings to the Chairperson and take her signature in
the pass book.
Those who do not pay their savings should be questioned
Pending debts should be recovered
Those who have not paid their loans should be questioned.
The Chairperson should give an account of the money the Group has.
Those who need fresh loans should be sanctioned
If some problems of the village are on the agenda, these should be discussed.
The members should be observant and alert until the discussions are over. The
book keeper should record all the proceedings in the minutes book.
The minutes book should be signed, but only after the minutes are read out.
Successful Communication in the SHG :
Norms for successful communication in the SHGs :
13. 13
A circular seating arrangement helps in democratic communication
Unless only one person speaks at a time there is chaos and noise.
If people indulge in side –talk, the rest of the group is distrcted.
Everybody should be given a chance to voice his or her opinion
All important discussions and all decisions in the meeting must be documented.
Key Questions :
Why is it important to document discussions and decisions?
What will happen to a discussion if everybody is not given sunch to voice his her
own opinion?
Are there any rules and regulations in a group that support effective
communication?
What is unity? Why unity is Important :
Unity results in :
People helping each other instead of pulling each other down
Co-operation and co-ordination in a group
Respect for each other
Collective empowerment
Increased self- confidence of individuals in a group
Greater effectiveness of collective effort.
Key Questions:
What is unity?
Why do we need to stay united?
Discovering the Strength of the SHG members :
14. 14
Every human being has strengths . Therefore , every SHG will have strengths
because an SHG consist of strong human beings working together as a collective .
These strengths are inherent and are not entirely dependent on the support of the
SHG promoting institution.
Key Questions:
Tell the story of a time when you faced a challenge and achieved something you
still feel proud of
What strength did the narrator display in this story? What are the reasons for her
success?
Vision of a SHG :
A vision is what you want to achieve –just as parents have a long term goal of
what their child is going to be when he grows up-----the SHG members must also
have a vision for their future.
What is a Goal:
A Goal is what we want to achieve , a destination that we want to reach,
something we would like to have or be….
Key Questions:
What is a goal?
Indicative Answers are:
A dream
An aspiration
Future plans
Aims
Achievements
Goals Settings and Action planning for the SHGs :
15. 15
Goal setting for the SHG based on the SHG’s vision.
Key Questions :
Keeping in mind the vision of your SHG what does are the goals of your group?
Indicative Answers are :
Building up the common fund
Linkages with other institutions
Increasing member’s capacity for credit absoption
Acquiring literacy and numeracy
Gaining knowledge and awareness on the functioning of various external
institutions.
Linkages with other institutions.
Supporting each other in times of personal crisis
Improving our status in life?
Checklist of Rules by Self Help Groups :
Membership:
Economic Backgroud of Members
Physical proximity of member’s houses
Representation from each family
Membership fee
Group size
Age of members
Cancellation of membership
Meetings:
Timing of Meeting
Absence from Meetings
Late Attendance
Quorum
16. 16
Savings and Credit :
Savings
Loans
Use of checks
Handling Cash
Maintenance of Accounts
Penalties
Interest on savings
Representatives:
Rotation of representatives
Two representatives and two co-signatories are chosen
The book writer must not be a co-signatory as this reduces her creditability.
Representatives must be responsible for the maintenance of books, reporting
and auditing.
Training Related
Attendance
Summary of the training topics should be reviewed in the SHG meetings
Ownership :
Members’ participation in and ownership of development programmes should be
ensured.
Credit Plus:
The SHG is not only concerned with savings and credit but also seeks to involve
itself in issues of health , education, justice, gender equality, environment,
community development etc. Each SHG comes up with its own priorities for
credit plus.
Sanctions:
17. 17
SHG members list out sanctions for deviations from the rules and regulations of
the group and cases when exceptions will be made . Sanctions are necessary to
ensure that group members do not take rules lightly.
Sanctions are also imposed on members violating social norms that the group
might have framed, such as not drinking or sending one’s daughter to school, not
receiving or giving dowry, owning toilets at home.
How will members ensure that sanctions are imposed without resulting in bad
blood or people leaving the group? This must be discussed before sanctions are
brought into practice.
The need of Book keeping :
Book keeping is needed in order to keep an accurate record of all transactions and
decisions taken in the group.
Key Question :
Why does one need book- keeping?
What are the Various Books and Records used in an SHG?
The following are the books used to record transactions in an SHG :
Minute book
Admission Register
Attendance Register
Member’s Individual Pass Book
Individual Savings Ledger
Individual Loan Ledger
Cash Book
General Ledger: It contains the activity wise cumulative balances
Receipt Book: It keeps track of all receipts to the SHGs.
Payment Voucher: All payments and expenditures of the SHG are routed
through the Payment Voucher
A demand Promissory Note : This Note is taken from the borrower as security
of the loan.
18. 18
Documentation File :Supporting documents, related to various financial
transactions and decisions made by the group and all correspondence should be
filed in the Documentation File.
Bank Pass Book/ Challan/ Cheque Book
Local Contribution Register : It provides information of funds mobilized at
local level either in cash or kind for various programmes.
Stock Book: It contains information of materials received or issued and balances,
along with their material value.
Control over the Common Fund :
In order for the SHG to retain control over the common fund the following practices are
usually observed:
Whoever is writing accounts never handles the money.
Members keep track , mentally of the total amount and composition of the Group
fund at any point of time.
The total amount is usually announced at the meeting or written on the board.
Members keep track of their own individual savings and credit status in the group.
Members ask the book writer to read out the day’s minute before they sign.
SHG members ensure that the books are always kept up to date.
SHG members ensure that the book writer has all the necessary equipment for
writing books such as a pen, pencil, eraser, white paper, carbon sheets, pins, glue,
rubber stamp and stamp and stamp ink-pad.
SHG members ensure that the custody of their books and records in not with the
book writer if he is the member of the group.
The Need for Leadership in an SHG :
Leadership is needed so as :
To monitor and improve upon the groups’ performance
To co- ordinate all the group’s activities.
To nurture the group’s inter –personal relationships.
To ensure that all members participate in the groups’ activities
19. 19
To take initiative in establishing linkages with external organizations.
To provide strategic direction to the group.
To represent the SHG in various bodies like federations etc
To express and interpret the group’s vision
Good Leadership helps to bring out the best in everybody.
Key Questions :
Why do we need leadership in an SHG ?
Leadership Styles :
There are several leadership styles, which a leader may exhibit :
An Autocratic leader
A Neutral or Dummy Leader
An Anarchic Leader
A Democratic or Participatory Leader
Rotating Leadership Functions
Rotational Leadership is an SHG is important because it :
Creates opportunities for all members to develop leadership qualities through
practice.
Enables the sharing of responsibilities.
Allows for the SHG to function smoothly even if some members are absent.
Creates equal opportunity in the SHG.
Does not allow for domination by a few members
Key Questions :
Why should leadership be rotated in an SHG?
How frequently should leaders be rotated?
Why should new leaders be appointed six months in advance of retirement of the
old leaders?
Why Self Assessment is necessary :
20. 20
Self Assessment is important in order to :
Identify one’s strengths and weaknesses, to build on one’s strengths and reduce
weaknesses.
Identify opportunities available to the group and to make the best use of them.
Monitor one’s performance as a group.
Hold a mirror to ourselves.
Indicators for Self Assessment :
Vision and Mission :
Organizational Management :
Group size and Composition
Participation
Meetings
Rules and Regulations
Financial Management :
Savings
Book keeping
Loans
Common Fund Management :
Auditing
Organizational Accountability :
Rotation of Representatives
Non partisan Nature
Distribution of Benefits
Sharing of Information
The Ability to Build and Sustain Linkages :
The Ability to learn and to Evaluate Organizational Performance
21. 21
STEPS IN CAPACITY BUILDING OF SELF HELP GROUPS AND VILLAGE
ORGANIZATIONS
Capacity Building of SHGs and Village Organizations:
Capacity building plays an important role in the building of the institution of rural
poors. Following steps will have to be followed in building the capacity of the SHGs and
Village Organizations, during their development as well as in their management:
1. Enabling
2. Empowering
3. Decision Making
4. Self Reliance
PROCESS OF CAPACITY BUILDING :
1. Enabling :
Involve them in group formation
Constitution
Registration
Leadership – cadre development
Team Working
Skill in * Group Action
Action
Book keeping
Meetings * Regularity
Significance
Overcome * Jealousy problems
Family Quarrel
Communication
Influence of Community :
Local
Social
22. 22
Political
Economic
2. Empowering :
Confidence
Self esteem
Power to negotiate and cooperate with
Government organizations
Plan and undertake – new activities
Higher management skills
Self Dependent
Work with authority
Independently seek
Advice
Exposure
Take administrative measures.
Own responsibility.
3. Decision Making :
Enter into formal and informal contracts to change with time and situation :
Socio
Political
Economic
Modify constitution
Change rules and take independent decisions.
4.Measures of Self Reliance :
Regularity of group meetings – high attendance of group promoter
Shared leadership . Members participation in group making
Continuous growth in group savings- financial
23. 23
High rate of loan repayment
Group problem solving in absence of group promoter
Linkages with development services.
Series of training programmes are be organized for different stake holders for
strengthening Self Help Groups.This will ultimately build the capacity of the
institutions of the poors.
Following sequence can be maintained in the process of capacity building for
different stakeholders:
Capacity building of good NGOs, CBOs, professionals, activists officials of
line departments, bankers and PRIs to achieve for smooth rollout.
Formation of block level trainer’s team – block level trainers team includes
officials, professionals, selected community resource persons, book keepers,
accountants, community animators, facilitators.
Preparation of training modules and materials
Capacity building training/ hand holding for the SHGs to achieve full
potential
Sequences of the training programmes:
Training programmes for officials, bankers, NGOs, CBOs , professionals, activists, PRIs
and other stakeholders
Training for community resource persons, coordinators, facilitators, book keepers, social
mobilizers
Handholding training programme for SHG members , members of primary federations
etc.
Broad subjects to be covered during the capacity building programmes for Self Help
Groups and Village Organizations (Primary Federations):
24. 24
Tentative modules for training programmes of community resource persons, social
mobilisers, facilitators, members of SHGs.
a. Types and causes of poverty (through exercises and games).
b. Participatory identification of poor – tools and techniques.
c. Characteristics of poor households and problems of poor families
(participatory exercises).
d. Credit requirement of poor and its sources (through matrix ranking
exercise).
e. Need for mobilising poor into SHGs and federations (video film on
best practices and group discussion).
f. Concept of SHGs and types of groups.
g. Formation and development of SHGs – stages in development
including vision and goals of SHGs (with games and stories).
h. Functions of SHGs, group dynamics and management of group
activities (with games, exercise and stories).
i. Roles and responsibility of the group leaders and members.
j. Conduct of meetings.
k. Rules and regulations of SHGs.
l. Savings and resource mobilisations, internal lending, common fund
management (group exercises).
m. Accounting, book keeping, record keeping, auditing.
n. Team spirit, team work, group cohesion, collective decisions
(games and exercises).
o. Decision making and conflict resolution (games and exercises).
p. Preparation of micro credit plans by the groups.
q. Self assessment, monitoring and evaluation.
r. Linkages with financial institutions and banks.
s. Convergence for social services.
t. Planning for livelihoods activities.
u. Concept, types and objectives of federations.
25. 25
v. Approach and rules in management of federations.
w. Best practices from Andhra Pradesh and Bihar.
x. Project formulation for development micro enterprises.
y. Support services for livelihoods activities.
z. Grading of SHGs and index of group sustainability.
26. 26
CHAPTER- 2
Decision Making and Conflict Resolution in Self Help Groups
and Village Organizations :
Self Help Groups and Village Organizations are grass root level democratic
institutions of rural people. Decision making plays an important role in the management
of these institutions of rural poor. Being institution of people, conflict and are bound to
be there in the management of their day to day activities.
In the above background following points relating to decision making and conflict
resolution will have to be discussed with the members of SHGs and Village
Organizations for the sustainability of their institutions.
Meaning of Decision:
•A conclusion.
•An output of a discussion.
•A judgment reach about an issue.
•A choice
Decision Making :
•The unspoken: Group Decision by Omission
•The Self – Authorised: Decision by one/ individual
•The Hand –Clasp : Decision by Two
•Decision by minority/Few
•Voting: Decision by Majority
•Consensus or Collective Decision –making
27. 27
Necessities of Collective Decisions:
•To share the responsibility of the group.
•For transparency and clarity.
•To avoid conflicts.
•To increase participation of individual members in Self Help Group.
•For better relationships between members in the Self Help Group.
Importance of Recording Decisions:
•To recall all decisions taken.
•Transparency in the group.
•Accountability on the part of those who made the decision.
•Decisions to follow in the next meeting.
Conflict Resolution:
Reasons behind a Conflict:
•Differences in background, perception, needs or attitude.
•A lack of mutual trust.
•Poor Communication.
•Lack of openness to each other’s view.
Types:
Functional Conflicts: Some conflicts can support organizational goals. Clashes and
ideas about tasks also help in choosing better tasks and projects. These are “Functional
Conflict” .
Approaches to dealing with Conflicts:
1. Collaborating :
This approach can be adopted in the following situations :
When both sets of concerns are too important to be compromised
When objective is to learn.
28. 28
To merge insights from people with different perspectives
To gain commitment by incorporation concerns into a concensus
To work through feelings that have interfered with a relationship
2. Accommodating :
This approach can be adopted in the following situations :
To allow a better position to be heard and to show reasonableness .
When issues are more important to others than yourself.
To build social credit for later issues.
To minimize loss when you are outmatched and losing.
When harmony and stability are especially important
To allow subordinates to develop by learning from mistakes
3. Competing :
This approach can be adopted in the following situations :
When quick , decisive action is vital
On important issues where unpopular actions need implementing .
On issues vital to organization and when you know you are right.
Against people who take advantage of non-competitive behaviour.
5. Avoiding:
This approach can be adopted in the following situations :
When an issue is trivial, or more important issues are pressing.
When you see no change of satisfying your concerns.
To let people “cool down” and regain perspective.
Gathering information supersedes the immediate decision.
When others can resolve the conflict more effectively
6. Compromising :
This approach can be adopted in the following situations :
29. 29
When goals are important, but not worth potential disruption of more assertive
modes.
When equal power opponents are committed to mutually exclusive goals.
To find temporary settlements of complex issues
To arrive at expedient solutions under time pressure.
As a backup when collaboration or competition is unsuccessful.
Managing Conflicts:
Allow time for cooling down.
Analyse the situation.
State the problem to the other person.
Leave the person for some time.
Use a win- win approach.
Factors Affecting Conflicts:
Personality traits affect how people handle conflict.
Threats from one party in a disagreement tend to produce more threats from the
other.
Conflict decreases as goal difficulty decreases and goal clarity increases.
Men and women tend to handle conflict similarly I e. there is no “ Gender Effect”.
Steps in solving Conflict situations :
Openly discussing the conflict including what happened, who are involved and
listening to every body’s point of view.
Listening out possible solutions to he conflict, taking into account every body’s
idea.
Identifying the solutions.
Adopting the most effective and collective solution
30. 30
Implementing the decision taken by deciding on the time frame for
implementation and deciding on who will do what.
Review and follow up.
In few situations an external person may be called to moderate conflict resolution.
Role of the lead person to present and clarify the background of the
Conflict :
Clearly explain your problem in terms of behaviour, consequences
and feelings:
-Maintain Personal ownership of the problem.
-Use a specific incident to illustrate the expectations or standards violated.
-Stick to the facts, avoid drawing evaluative conclusions and attributing motives to the
respondent.
Persist until understood and encourage two-way discussion :
-Restate your concerns or give additional examples.
-Avoid introducing additional issues or letting your frustration and emotions grow.
-Invite the respondent to ask questions and express another perspective.
Manage the Agenda carefully :
-Approach multiple problems, proceeding from simple to complex, easy to difficult,
concrete to abstract.
-Conversely , don’t become fixed up on one issue.
Role of a Chairperson in the group conflict management:
Establish a climate for joint problem solving :
-Show genuine concern and interest .
-Respond appropriately to the lead person’s emotion.
31. 31
Seek additional information about the problem :
-Ask questions that channel the lead person’s statement from general to specific and from
evaluative to descriptive.
Agree with some aspects of the complaints :
-Signal your willingness to consider making changes by agreeing with facts, perceptions,
feelings or principles.
Role of a Mediator for Managing Conflict:
Acknowledge that a conflict exists :
-Select the most appropriate setting for coaching and fact-finding.
-Propose a problem- solving approach for resolving the dispute
Maintain a neutral posture :
-Assume role of a facilitator and judge. Do not criticize the disputants for their inability
to resolve their differences.
-Be impartial towards the disputants and issues.
-If correction is necessary , do it in private.
Manage the discussion to ensure fairness :
-Focus discussion on the conflict ‘s impact on performance and the detrimental effect of a
continued conflict.
-Keep the discussion issue-oriented , not personality –oriented.
-Do not allow one party to dominate the discussion. Ask directed questions to maintain
balance.
Need for Leadership in a SHG:
Leadership is needed so as-
To monitor and improve upon the group’s performance.
32. 32
To coordinate all the group’s activities.
To nurture the group’s inter-personal relationships.
To ensure that all members participate in the group’s activities.
To take initiative in establishing linkages with external organizations.
To provide strategic direction to the group.
To present the SHG in various bodies like federations.
To express and interpret the group’s vision.
Leadership Styles:
An autrocratic Leader
A nutral Leader
An anarchic Leader
A democratic or Participatory Leader.
Necessities of Rotational Leadership:
Creates opportunities for all members to develop leadership quality through
practice.
Enables the sharing of responsibilities.
Allows for the SHG to function smoothly even if some members are absent.
Creates equal opportunity in the SHG.
Does not allow for domination by a few members.
33. 33
CHAPTER –3
Index of Sustainability of SHGs and Village Organizations
Different indicators and variables are to be identified for the measurement of
sustainability of Self Help Groups as well as federations of SHGs. Important aspects like
institutional, managerial and financial needs to be studied. Following Index and
indicators will have to be inculcated in the minds of the members of SHGs and Village
Organizations, so that they can follow the required norms in the development and
management of the groups for their sustainability.
Institutional Sustainability Index :
Institutional sustainability Index of the SHGs was constructed with the help of Six
Indicators of Group Management:
Leadership Index.
Index of Meetings.
Decision making Mechanisms of record keeping.
Accounting and monitoring.
Networks and memberships, conflict resolution capacity.
Dropout rate of the members from the group
Leadership Index :
The Leadership Index is constructed through Three variables:
The selection procedure of the Group .
The periodical rotation of leadership in the group.
Identifying the group management capabilities of the leaders in the group.
2. Index of Meetings & Participation in Decision making :
This Index is constructed through Six variables:
34. 34
Frequency of Group Meetings.
Regularity of the meetings.
Average attendance at the meetings.
Decision making process in the meeting.
Participation of the members in the decision making process.
Penalty imposed for irregularity attendance.
3. Index of group Record Maintenance :
This Index is constructed through Five variables:
Maintenance of Records.
Regularity in maintaining the records.
Who writes of records, the knowledge of writing the records.
Level of transparency in maintaining the records.
Auditing the group accounts.
4. Index of Capacity to Resolve conflicts :
This Index is constructed through Three variables:
The conflicts faced by the members/groups.
With project staff.
The level of capacity of the group in solving the conflicts
5. Networks and membership Index :
This Index is constructed through Three variables:
Groups having membership in federation /cluster of groups.
Membership in formal financial institutions .
Membership in local organizations, like- schools, political and religious
institutions.
35. 35
6. Member Dropout Index :
This Index is constructed through Three variables:
Number of members that left the group after formation.
The cause for the droupout.
Default by the dropout member.
Once Independent Indexes are constructed for each of the above said indicators
of group management, all the individual indices will be used for the construction of a
composite index of SHG- Institutional Sustainability.
Financial Sustainability Index:
The Financial Sustainability Index of the group has been constructed with the help
of six indicators of financial management of the group. As the first step , an independent
index is constructed for each of these components.
1.Thrift and Savings Index:
The thrift or saving index measures the saving potential and utilization in the group
The Index has been constructed by using five variables:
The frequency of savings per month
Average savings for the group per month
Total common fund created by the group
Utilization of group savings
Mode of savings collected from the members
1.Credit Accessibility Index:
Maintaining equity and punctuality in delivering adequate credit has more impact
on the sustainability of the groups
The Index has been constructed by using four variables
The average loan amount accessed by the group .
The average number of members who accessed the credit
36. 36
The process / procedure of credit disbursement.
3. Process of Credit Rotation Index:
Credit rotation is one of the decisive indicators of financial sustainability of the group
The Index has been constructed by using three variables:
The frequency of loans taken by members.
The criteria followed in credit rotation
Credit rotation in the group
4. Credit Repayment Index:
Repayment of loan to Financial Institution or to the group is equally important for its
sustainability
The Index has been constructed by using three variables
Repayment according to scheduled by members to the group.
Repayment according to schedule by group to the Micro Finance Institution.
The number of defaulters in the group and amount in default.
5.Index of Resource Mobilizations and Utilization :
The group’s capacity to absorb and utilize the resources will determine the financial
sustainability of the group.
The Index has been constructed by using four variables
The effort of the group members to raise resources
The capacity of the group absorb and utilize resources.
The average number of members are engaged in income generating activities.
The level of benefit distributed among the members.
6. Index of Independence from Social Parasites:
This index will explain the efficiency of group lending in rural areas to meet the credit
37. 37
requirements of the poor.
The Index has been constructed by using three variables
The potential of the group in fulfilling the credit requirements of the members.
Number of group members still depending on informal lenders.
Proportion of informal credit in total credit accessed.
In order to assess the sustainability of a SHGs, all SHGs will be ranked (ie 0, 1 or
2) individually for each sub- indexes as given below:
Leadership Index:
a. The selection procedure of the leader of the group:
Ranks:
Leader is selected by few people The leader is selected
by majority
The leader is selected
by all members
0 1 2
b. The periodical rotation of leadership in the group:
Ranks
No rotation of leadership Sometimes leaders are
rotated
Periodically rotated
0 1 2
c. Identifying the group management capacities of the leaders in the group:
Ranks
Can not manage the group Can manage to some extent Good Management
Capacity
0 1 2
, the members will have to rank their SHG (ie. 0, 1 or 2) against each variables as
follows:
Index of Meeting and Participation in Decision Making:
a. Frequency of Group Meetings:
Ranks:
No group meetings Group meeting in a month Group meeting in every
week
0 1 2
b. Regularity of the meeting:
38. 38
No group meetings No regular Group Meetings Group meeting in every
week
0 1 2
c. Average Attendance at the meeting:
0 to 50% 50 to 99% 100%
0 1 2
c. Decision making process in the meeting:
By minority By Majority By all
0 1 2
d. Participation of the members in the decision –making process:
No participation Participation by few Participation by all
0 1 2
e. Penalty imposed for irregularity attendance:
No penalty provisions Not so strict Strictly imposed
0 1 2
Index of Group Record Maintenance:
a. Maintenance of Records:
No one know how to
maintain the records
Some members know how
to maintain group records
All members know how to
maintain group records
0 1 2
b.Regularity in maintaining the records:
Records are not
maintaining
Partially maintaining Regularly mainlining
0 1 2
c.Who writes the records/ knowledge of writing records:
Records maintained by the
leaders
Records maintained by
some members of the group
Records maintained in the
group is known by all
members
0 1 2
d.Level of transparency in maintaining the records:
Not transparent Partially transparent Always transparent
0 1 2
e.Auditing of Group Accounts:
39. 39
Not audited Partially Audited Fully audited
0 1 2
Networks and Membership Index:
a.Group having membership in federation :
Not having membership in
federation
Passive membership Active Membership
0 1 2
b. Membership in formal financial institutions:
Not having membership Passive membership Active membership
0 1 2
c. Membership in local organizations like schools, social ,political insti.:
Not having membership Passive membership Active membership
0 1 2
Index of Capacity to Resolve Conflicts:
a. The conflicts faced by the members:
Frequently faced regarding
ordinary matters
Sometimes faced regarding
important matters
Faced Functional Conflicts
0 1 2
b. The level of capacity of the group in solving the conficts:
Could not solved/
Destructed the group
Solved in long term Functional Conflict/
Smoothly solved/
constructive conflict
0 1 2
Member Dropout index:
a.Number of members that left the group after formation:
Many members Few members Zero dropout
0 1 2
b. The Cause for the Dropout:
Due to interpersonal
problems
Due to some un-avoidable
situation
Due to death
0 1 2
c. Default by the dropout member:
Defaulter Defaulter but not affecting Not defaulter
40. 40
the group
0 1 2
Financial Sustsinability Index:
Thrift and Savings Index:
a.The frequency of savings per month:
No savings Irregular Savings Savings per month / regular
0 1 2
b.Average savings of the group per month:
Zero savings Less than Rs 50 per month Rs 50 or more per month
0 1 2
c.Total common fund created by the group:
Not created Irregularly created Regularly created
0 1 2
d.Utilization of group savings:
Not utilized Utilized on the basis of
fewer’s decision
Decision by all
0 1 2
e.Mode of savings collected from the members:
Not collected Less than 4 times a month 4 times or more in a month
0 1 2
Credit Accessibility Index:
b. The average number of members who accessed the credit:
No one accessed the credit Many members accessed
the credit
All members accessed the
credit
0 1 2
c. The process / procedure of credit disbursement
Without any consideration Need based Selection of very needy one
0 1 2
Process of Credit Rotation Index:
a. The frequency of loans taken by members:
Not taken Taken Need based
0 1 2
41. 41
b. The criteria followed in credit rotation:
On the basis of decision by
few
Decision by majority Decision by all
0 1 2
c. Credit rotation in the group:
Not Rotating Partially Rotating Frequently Rotating
0 1 2
Credit Repayment Index:
a.Repayment according to scheduled by members to the group.
Schedule not followed Schedule sometimes
followed
According to schedule
0 1 2
B.Repayment according to schedule by group to the Micro Finance Institution.
Schedule not followed Schedule sometimes
followed
According to schedule
0 1 2
c.The number of defaulters in the group and amount in default.
Many Few No one
0 1 2
Index of Resource Mobilizations and Utilization :
a. The effort of the group members to raise resources:
No effort Some efforts Large efforts
0 1 2
b.The capacity of the group absorb and utilize resources:
No capacity Building Capacity Have Capacity
0 1 2
c.Number of members are engaged in income generating activities:
Few engaged Many engaged All are engaged
0 1 2
d.The level of benefit distributed among the members:
Distributed among few Distributed among all on the
basis of the decisions by
majority
Equally Distributed
42. 42
0 1 2
Index of Independence from Social Parasites:
a.The potential of the group in fulfilling the credit requirements of the members:
Low Medium High
0 1 2
b.Number of group members still depending on informal lenders:
Fully depending Partially depending Not at all
0 1 2
.
In the first step, a set of variables of group management was identified from the
primary survey. All total 12 indicators were selected to measure the sustainability of the
groups. They are further divided into 2 indexes ie institutional and financial indexes.
Again each of the indicators is determined by a set of variables. 0,1 and 2 ranks are used
in each variables. All SHGs will have to assessed on the basis of each variable by putting
0, 1 or 2 rank to it. For each individual indicator, average (on the basis of the data
collected) will have to be calculated. The average Data obtained from each individual
indicator will be used for further calculation of average for the 2 indexes (ie. Institutional
and Financial indexes). In this way average scores obtained by each SHGs will have to
be calculated separately to compare the sustainability capacity of each SHG. Those SHGs
who have scored near to point 1 are considered to be a medium one and the SHGs who
scored point 1-2 will be considered as the strongest one.
Source :The article is based on the original article titled “ Index of Micro Finance Group
Sustainability & Concepts, issues and empirical evidence from Rural India”, written by Dr.
Naveen Kumar K. , Assistant Professor, Post Graduate Department of Management Studies &
Research Center, Karnataka, published in the Micro Finance Review Journal, Volume 1, January
2009.
43. 43
Qualitative Indicators :
Short term :
Individual self-assertion
Collective resistance
Collective Action
Greater access to physical resources.
Increase in literacy skills
Increased access to information on health issues and greater awareness to utilize.
Existing health services.
Medium Term :
Reduction in women’s burdens.
Enhanced nutritional well- being of children and adolescent girls.
100 % immunization of children and pregnant women.
Higher enrolment of girls at school.
Involvement in decision making in family.
Changes in gender roles in family.
Long Term :
Reduction in maternal and infant mortality.
Higher age of marriage for girls
Acceptance of small family norms and child spacing
Perceptible changes in gender biased socialization practices, such as improvement
in discriminatory food intakes, freedom of movement of girls, participation of
boys in household work.
Quantitative Indicators :
Number of gender sensitization training programmes conducted.
Number and proportion of non- conventional economic activities taken up.
44. 44
Range of economic activities promoted.
Number of loans procured.
Amount of savings accrued
Average increase in women’s incomes
Number of women beneficiaries.
General Indicators :
Activities / events in which a group participates : Eg. Collective economic activities ,
meetings, training sessions.
Action: Specific Action undertaken by the group to tackle a particular problem.
Eg. Action to obtain social welfare, action to defend members interest against
exploitation by a traden, action to persuade some defiant husbands to assist
members , active participation in group activities.
Change in group behaviours : The nature of group meetings , issues discussed ,
decisions taken, degree of participation, use of language.
Nature of intervention: The relationship between the community and groups or
other development workers- whether it is based on trust and mutual understanding
or suspicion and intimidation.
Relationship with other groups : Process of discussion , level of intergroup
contact , joint action etc.
Group sustainability : Number of years that the group is functioning , number of
times the revolving fund has been recouped , number of members who have
dropped out with reasons, number of new members added as replacements,
diversification of activities etc. will give some indication of group sustainability.
Economic Autonomy
Opportunities given and handled.
Increase in decision-making capacities.
Attitudinal changes.
Role perception (self and perception of the community)
Increase in quality of living.
Increase in earning and purchasing power.
45. 45
Indicators relating to Self – generated thrift and credit:
Regularity of thrift form the members.
Rotation of atleast 90% of the thrift among the members by way of loans. With
amounts given to more number of members at a time.
Utilization of atleast 70% of the loans for income generation, agricultural
purposes, asset building, and loan repayment.
More group loans for group activity.
Prompt repayment with interest.
Regular meetings of the group members for (a) Feedback on utilization of amount
(b) Sharing on experience with amount utilized (c) Exploring various income-
generation and enterprise options .
Presence of strong committee within the group to prioritise needs.
Strong peer pressure for proper utilization of amounts. Presence and regular
update of related books namely.
Thrift Register
Loan register
Minutes book
Pass book
Indicators relating to Livelihood Activities :
Number of Programmes taken up
Range of activities taken up
Group vs individual activities.
Marketability of the produce/ product within the project area.
Direct bearing of the activity on the income levels of the people concerned.
Number of skill trainings imparted.
Number of skilled trainees taking up the activity.
Network linkages (with banks, administrative etc) built up for initiating activity.
Activity vs development of area , change/ improvement in peopl’s practices etc.
Number of activities promoting (a) indigenous technology (b) Environmental
conservation and (c) Programmes of national importance (sericulture, NPM, non-
conventional energy)
46. 46
Number of assets of people’s utility built up in course of activity.
Number of people benefiting form sub- components of activity in quantifiable
terms , like wages etc.
Replication of these activities within and outside the area.
Number of Grass root level extension workers developed for person- to person
transfer of skills.
Number of people directly benefiting through imparting the training as
professionals.
Number of second-line trainings taken place (through grass root level extension
workers)
Range of marketing arrangements option build up within outside the area.
Sharing of produce amongst the people.
Monitoring and Evaluating the broad areas:
Internal Cohesion
Group solidarity
Active and critical participation
Reduced dependence/ increased confidence
Self Management capability.
Democratization of power , collective responsibility.
Involvement in regular discussion with other similar groups and institutions.
Involvement in creation of similar groups and
Ability to deal with government officials.
Characteristics of a good Group :
The Group members should have a feeling of self reliance - A Self Help Group
The Group should have clearly defined goals - A Group with goals
The members should have relations of Trust, cooperation
47. 47
& love among themselves - An Affinity Group
All members of the Group should be poor having similar
& social & economic problems/ background - A Homogeneous Group
All members of the Group should run it unitedly - A Democratic Group
All the Group members should possess leadership qualities - A Leadership Group
The Group should follow good rules and regulations - A Disciplined Group
The transactions of the Group should be transparent - A Transparent Group
The living standards of Group members should gradually
Improve - A Progressive Group
The Group members should acquire social consciousness - A Conscious Group
Index and indicators will help in grading the SHGs for formation of Village
Organization, Community resource persons will impart training on the index and
indicators and monitor the performance accordingly.
48. 48
CHAPTER -4
SOCIAL CAPITAL
Participatory Assessment of Social Capital:
Social Capital is an accumulation of various types of social, psychological ,
cultural , cognitive, institutional and related assets that increase the amount of mutually
beneficial cooperative behaviour. Social Capital refers in general to the glue that holds
groups and societies together through bonds of shared values, norms and institutions. The
terms – social capital, social capability, social exclusion and social engagement are inter-
related.
Self Help Groups can be graded on the following criteria before moving on to
next step/ intervention:
Criteria for Assessing Social Capital of Self Help Groups:
Criteria for Assessing Changes in Social
Capital
SHG1 SHG2 SHG3 SHG4
Productivity
1. Group members keenness , leadership and
sense of responsibility
1 1 3 4
2. Group capacity and level of confidence 1 1 3 4
3. Status of growth in financial capital 1 1 1 2
49. 49
4. External linkages- vertical and horizontal 1 1 2 2
5. Technologies and improvement 1 1 1 1
Equity
6. Broad-based understanding of group
activities and worldview
1 2 3 4
7. Group participation in decision making 1 1 2 2
8. Equity in benefit flows 1 1 4 4
9. Livelihood impacts and reduction in
vulnerabilities.
1 1 5 2
Sustainability
10.Vision/ ideas for future 1 1 3 4
11. Group- based natural resources
regeneration/conservation
1 1 4 4
12. Internal norms, mutual trust and role
clarity
1 1 3 3
13. Group attachment/ ownership 1 1 2 3
14. Ability to raise issues and resolving
conflict
1 1 2 2
15. Maintenance of Assets 1 1 3 4
16. Social inclusion and emotional well
being
1 2 6 4
17. Freedom to function as a group and
power to influence decision- making.
1 1 4 4
18.Power “within” and power “with” 1 1 3 3
19.Access to information and responsive
governance
1 1
20Transparent decision –making from
above
1 1 3 3
Total Score 20/120 22/120 57/120 63/120
Total Score on 100 16.7 22.5 47.5 52.5
50. 50
Note:1: Qualitative Scoring : Measurement of Social opportunity is based on scoring on
20 criteria, as follows: 1=Negligible, 2=Low, 3=Medium, 4=High, and 6= Excellent.
Note 2: There are 20 criteria for measurement of Social opportunity. Each criterion with
the highest score of 6, leads to a total score of 120. Any group or village Organization ,
which scores “excellent” on all criteria has a total score of 120 (6 multiplied by 20) while
that, which scores “negligible” on all criteria has a total score of 20 (1 multiplied by 20)
Index and indicators will help in grading the SHGs for formation of Village Organization,
Community resource persons will impart training on the criteria for social capital and
monitor the performance accordingly.
51. 51
CHAPTER – 5
FREQUENTLY ASKED QUESTIONS:
On Savings and Group Meetings
SAVINGS:
Question No 1. Should all members pay equal savings?
Ans: Savings can be paid in 3 ways :
Equal Savings: All members pays the minimum amount equally.
Unequal Savings : Members save according to their capacity. The profits of the
Group are distributed in proportion to the members savings.
Savings according to the Season: Members pay more in the seasons and less in
summer.
Question No 2: Should the savings amount be paid once a month?
Ans : Members decide how the savings be remitted . Normally it is done in three ways :
Weekly Savings: Savings are paid for four weeks at the rate of one installment a
week.
Monthly Savings: The whole savings installment is paid on the last day of the
month
Once a fortnight : The savings are remitted twice a month at the rate of once a
fortnight.
52. 52
Question No 3 : Is interest paid on savings ?
Ans: Interest is paid on the member’s savings. The rate of interest is decided by all the
members together.
Question No 4: Are savings and loan interrelated ?
Ans: Some groups sanction only twice the amount of a member’s savings as loan. Banks
too grant loans keeping in view the total savings of the Group. Any amount can be
sanctioned according to the need.
Question No 5 : To whom , when and where should the savings be paid?
Ans: A member should handover her/his savings in the presence of all other members to
the president in the savings meeting. Members should get the pass book signed
immediately after paying the savings.
Question No 6: If one withdraws midway are the savings returned immediately?
Ans: The group decides how much should be paid if a person wants to join midway.
Those who can afford to pay the whole amount may be asked to do so. The Group should
behave liberally towards those who can’t do so and accept savings from that month.
Otherwise the poor will be denied the opportunity of joining the Group.
Question 7: What will happen if the savings are paid late?
Ans: If savings are remitted late, the discipline of the Group will be affected and
sanctioning new loans will become difficult. To address this problem, the Groups should
impose fines on members who pay their savings late.
Question 8: How to pay the savings in the season when no work is available?
Ans: If more savings are paid during the work season, it would suffice for the loan
season.
Question No 9: For how much period should a member save in a Group ?
Ans: Savings are as important as breathing for an individual. People have needs
thoughout their lives. So savings should continue for the whole life.
53. 53
Question No 10 : If a member dies, to whom are her savings paid?
Ans: The name of the heir is written on the first page of the pass book. The savings
amount is paid to the heir whose name has been entered there by the member.
Question No 11: What is the assurance that the savings money is safe ?
Ans: The savings collected in the meeting are deposited in the Group’s account at a bank.
The president shows the bank receipt to all the members at the following meeting.
Whenever money is requird, the money can be drawn from the bank but not only on
showing resolution signed by all the members. Loans from other sources are also
obtained collectively.
Question No 12: If a member wants to leave the Group , is it possible to return her
savings immediately?
Ans: Not possible . This is because in a Group, the savings amounts are given out as
loans to members . So it is necessary the members informs the members in advance that
she/he is withdrawing. Otherwise, one or two months after she has dropped out, her/his
savings will be returned to her/him.
GROUP MEETING :
1. What would happen if the date, time and venue of the meeting are not decided in
advance ?
Ans: The meetings will not be held regulary. The members will have to be informed
individually about the date and time of the meeting every time. The leader will have to go
from door to door inviting members to the meeting. Only if the members turn up on the
appointed day the meeting, discipline will be maintained in the Group.
2. What is the benefit if each meeting is presided over by a different member?
Ans: All members will develop leadership qualities.
54. 54
3. What is the benefit achieved by holding the meetings at a different member’s
home each time?
Ans: The member will consider it as a honour to receive all the members at her/ his place.
She/he will recognize that she/he has an equal stake in the Group. Her/his family
members too will learn about what happens in a meeting.
4.What should the members sit in a circle ?
Ans: This will create a feeling that all members are equal in the Group. They can all see
each other if they sit in a circle . It is a convenient arrangement for discussions.
Everybody will be able to observe how the books are maintained and transactions made
in the meeting.
5. Why should the attendance be taken soon after the meeting begins ?
Ans: By doing so, it will be known how many members came to the meeting in time. The
discipline of the members can be assessed. Fines can be imposed, as per norms, on
members who came late.
6. Is it necessary that the loan applications are scrutinized and approved in the
meeting ?
Ans: If loan applications are examined in the presence of all members:
1. It can be decided to whom should the loan be sanctioned first.
2. It can be found out if the activity to be taken up with the loan is profitable or
not.
3. The procedure for repayment can be decided.
4. Since the decisions are taken collectively, all members will take up the
responsibility of recovering the loans .
7. Why should the total amount collected in the meeting be declared to everybody ?
Ans: To improve transparency in the Group and to avoid malpractices in the management
of the Group and to raise the pressure on the members.
8. Why should the book keeper read out the minutes of the meeting ?
55. 55
Ans: Everybody will come to know of what is happening . Everyone will develop trust in
the Group.
9.Why should all members sign in the minutes book?
Ans: It shows that the members approve of all the decisions taken collectively in the
meeting. The members will thus stand committed to the decisions made.
10. What is the harm if members leave a meeting in between ?
Ans: If one person leaves, others will try to follow the same. What takes place in the
meetings will not be known to them. The meeting will come to an end abruptly. Members
leaving a meeting in-between amounts to showing disrespect to the Group.
11. What is the loss if savings & loans are not paid in the meeting?
Ans:
1. It is difficult for the leader to go to each member’s house and collect money. This
method will not last long.
2. If money transactions are held in everyone’s presence, everyone will remember
them.
3. All the members will together question those who have not paid their loans. As
the payments are made in the presence of all the members, all of them remember
all the details.
56. 56
CHAPTER –6
Financial Management of a Group
For Financial Management:
Common Fund Management Related
What to promote What to discourage
Frequent rotation of the common fund for
loans
Large sums of money lying unutilized
for long periods represent process
blocks the reasons have to be analyzed
and addressed.
A balance needs to be maintained between the
members savings and matching funds from the
programme (a. 1:3 ratio is the limit). (There are
examples where large programmes
contributions have made members take
careless decisions which they would not have
taken with their own money. In some groups
members have rotated only the amount
received from the prgramme, keeping their
savings intact)
All financial transactions should take place
Large amounts of money for
infrastructure, community programmes
or even credit management should not
be router through the group since this
can distort the working of the group to
fund- monitor rather than fund
managed : besides such groups spend
most of their time and energy
implementing “our” programmes.
No money transaction should be
conducted outside the meetings,
57. 57
during a group
All accounts should be in the name of the
group and not in the name of one or more
members. Signatories to the group Bank
account must be rotated periodically.
All decisions regarding fund management and
fund utilization should be recorded and be
verifiable through the minutes in the group.
Fund management tends to improve if groups
display charts showing lists of members loans,
recoveries, overdue balances and other
activities.
whether it relates to loans disbursals,
collection of savings and repayments or
decisions with regard to using funds for
community programmes, no group
member or office bearer should hold
cash balances at any time, several
groups however agree to place small
amounts at the disposal of the office
bearers for emergencies.
Village Organization’s staff should not
handle group money, they should not
function as group office bearers, neither
should hey accept (even informally) to
perform those functions that are
expected to be performed by the group
members (eg,. Depositing money in the
bank, making withdrawal , purchases
etc.)
SAVINGS RELATED
What to promote What to discourage
Encourage the savings habit as a value in
itself and not just as a means of increasing the
groups fund position. It builds up the habit of
thrift and controls unnecessary consumption
There are seasonal variations in the amounts
saved by a member. Many groups take such
seasonal variations into account in fixing the
minimum amount to be saved each month.
The practice in some groups of
requiring equal savings by all
members each month regardless the
fact that some members may at times
be in a position to save more has to be
discouraged.
Several groups make a distinction
between members savings and
contributions to the common fund.
58. 58
Every group needs a policy on how to manage
the savings of members who :
a. leave the group voluntarily
b. Are asked to leave for some reason.
Payment of interest to members on savings
deposited in the common fund is still not a
widespread practice but one that is worth
considering and promoting.
Many groups permit their members to save for
a particular purpose e.g. weekly savings to
build up the necessary amount to pay a Bank
Loan installment when it falls due. Such
practices should be encourages.
While contributions are non
refundable , the practice of
withholding savings of members
leaving the group (either voluntarily or
forcibly) should be discouraged. There
are instances where such a decisions
has resulted in a drop in savings
among other members who fear the
same consequences.
LOAN RELATED
What to promote What to discourage
All loan applications must be addressed to the
group or to the office bearers of the group and
must be scrutinized and approved , modified
or rejected in group meeting only and minuted
accordingly.
Repayment schedules must be finalized and
minuted when loans are disbursed.
Service/ interest charge on loan must be clearly
separated from repayments that rates are more
easily managed.
Promissory notes obtained by many groups for
large loans should be between the group and
the member.
Loans (cash or cheques) must be disbursed
only at group meetings
Care should be taken to ensure that few
members do not monopolies all loans.
Large loans for a singe member must
be avoided until the group is financially
strong and has systems of
administration that are adequate to
motive and guide members and impose
sanctions for deviant behaviour.
The tendency to first decide on who
should get a loan and then to assess
how much money there is in the group
and if there is a deficit to ask the CRPs
to meet it, is not credit management, it
should be discouraged at all costs.
Loans must not, be disbursed to
persons other than the group member
who has actually applied for it.
59. 59
The practice of giving a second loan before the
first is repaid should be carefully assessed ,
particularly if there are overdue installments.
When the Banks advance loans they should be
given to the group on the basis of its
performance and not made out in the names of
the individual members. Care should be taken
to ensure that the Bank loan is considered by
the m embers as “their” money as part of their
common fund.
BOOK KEEPING RELATED
What to Promote What to discourage
All groups require training to keep basic books
and documents, all record must be kept in a
safe box with the group either in the meeting
place or with one of the office bearers.
All books must be kept up to date , with
transactions being recorded as soon as they
occur
All groups must close the books by the end of
the calender financial year.
Groups must be helped to develop and
maintain their own systems and records for
book keeping.
The practice of keeping books with
CRP staff or in the office should be
discouraged.
Money for purchase of books and
stationery may come from the
programmes at the initial instance but
not on a continuing basis.
Initially CRPs/ Book-keepers may have
to assist the groups in maintaining their
books and documents but not on a
permanent basis.
If a group retains a person on an
honorarium/ wage basis to keep
accounts/ minutes , the money will
have to be generated by the group and
not expected from the Programmes.
AUDIT RELATED
What to Promote What to Discourage
Accounts must be audited at least once a year
Auditors must ensure that concerned staff and
group representatives re present at the time of
audit.
Audit reports must be presented to the group in
a language in which they can be understood by
all members
Audit reports should be taken note for
Disposal of group owned assets cannot
be undertaken without the approval of
members and appropriate
documentation.
Members who have purchased assets
with group assistance cannot dispose
off the same while loan installments are
still due, without adequate reasons that
have the approval of other members.
60. 60
immediate and appropriate follow up action. A
regular recorded system should be established
by the project offices/ apex group to follow up
audit remarks.
Book Keeping and Accounting at Self Help Group level:
Self Help Groups and Village Organizations will mobilize resources from different
sources. Group corpus or resources at village organization level will keep on increasing
through establishment of linkages for resource mobilization. Sustainability of these
institution of poor will depend upon efficient management of their resources. For this
financil management and book keeping are very much essential. Financial Management
becomes all the more important with SHGs taking up livelihood activities through
internal and external loan.
Books of Accounts to be maintained by the Groups:-
Cash/ Bank Book
Ledger/Loan Ledger/ Saving Ledger
Vouchers
Receipt and Payment Register
Cash Book:
The cash book is a register to record all financial transactions of the Village
Organization
Both Bank and Cash columns are necessary in the Cash Book to show all the bank
and cash transactions.
The transactions are either receipts or payments.
All transactions are first recorded in receipts/ payment voucher at the time of
receiving or giving the payment.
All payments and receipts are recorded showing the head of account
The cash and bank balance shall be certified by the secretary and treasurer on
daily basis.
61. 61
On the dat of the receipt/ payment itself , receipts and payment voucher are
entered into he Cash and bank loan.
The format of the Cash Book is given below:
Date Head of
Account
with
Particul
ars
LF Amount (Rs) Date Head of
Account
with
Particula
rs
LF Amount
(Rs)
Cash Bank Cash Bank
Vouchers:
There will be two types of Vouchers at SHG level:
Receipts Voucher
Payment Vouchers
Receipts Vouchers:-
SHGs shall issue receipts vouchers for every receipt made by the groups against savings,
Bank loan or the receipts.
The format of the receipt Voucher is given below:-
62. 62
------------ SHG, Village---------------
RECEIPT
Receipt No:
Received from- (Name and Address)
Membership No:
Sl. No. Particulars Amount
1 Savings Rs
s
2 Loan
Repayment
3 Membership Fees
4 Interest on
loan
5 Others to be
specified
Total
Rs in Words:
Book Keeper/CM Secretary/ Treasurer
Points to be noted in preparing receipts:
All receipts are to be prepared in duplicate
The duplicate copy of the receipt will be retained by the SHG and the original to
the person paying the amount to the SHG.
All receipts must be serially numbered and dated.
All receipts must be signed by the Treasurer.
All receipts must be accounted for in the cash Book on the date of the receipt
itself.
Any corrections in the receipts must be countersigned by the Treasurer.
The amount in figure and words must agree.
Payment / Expenditure Vouchers:
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Every payment / Expenditure must have some evidence which shows that
payments has been made.
Vouchers are prepared for every payment/ Expenditure.
There are two types of payment vouchers ie. Internal Vouchers and External
Vouchers.
When the bills are received from the supplier or Shopkeeper or service provider
against any payment or expenditure , those vouchers are called External vouchers.
When the vouchers are prepared internally against any payments/ Expenditure
those vouchers are called Internal Vouchers. In big organization internal vouchers
are prepared on the basis of external vouchers.
In small organizations only external vouchers are kept as a proof of expenditure.
If no external vouchers are received for any expenditure than SHG may prepare
internal vouchers duly signed by the person who has power to make the ppayment
and expenditure as a proof of expenditure. In SHG the voucher must be signed by
Secretary and Treasurer.
The format for Payment Voucher is given below:
……….SHG, Village……..
Payment Voucher No: Date:
Payment made to:
Description Head of Account Payment Towards Amount
Rs. P
Amount in words: Rs:…………………………………………………..only
We certify that supplies/services have been rendered and that the payment of
Rupees….(in words), is in accordance with the project principles and is fair and
reasonable.
……………………………….. …………………………………..
Date:……….. CM/ Book keeper Secretary/ Treasurer
Received this in payment of the account, the sum of
Rupees……………………….only
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The details in the Payment Voucher shall be filled with the following particulars
:
Who received the payment.
The reason for making the payment
The mode of payment- cash or cheque
Particulars of the bills/ receipts enclosed to the voucher
When payments are made by cheque, the invoice for which the payment
is made shall be attached to the voucher.
Receipts have to be obtained for all payments and later on attached to the
Payment Voucher.
Payment vouchers must be authenticated by the person authorize to
approve the payments.
Whenever advance payments are made, it should be mentioned in the
Payment Voucher as “Payment of Advance for……”
Preparation of payment voucher is optional for the SHG.
Ledger :
The Cash book contains all transactions related to receipt or payment. So, cash
book shows mixed transactions on any particular date.
The ledger book has one page/ folio for each head of account. All transactions
relating to a particular income or expenditure head, appearing in different places
of the Cash Book will be grouped together in that Ledger Book.
The format for a ledger folio is given below:
Date Cash book
Page No
Description Debit Credit Balance
TOTAL
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Loan Ledger:
Since the maor activity in a SHG group is providing loan the members a separate
loan ledger are maintained for each and ever member. The Loan ledgers consist of
following information:
Name and Address of the member
Amount of Loan
Rate of Interest
No. of Installments for repaymen
Purpose of loan
Amount of Loan Given
Amount of loan repaid.
Receipts and Payments Statements:
The receipt and payment statement shows the funds spent.
The receipts and payments statement will be prepared for every month and
submitted in monthly financial report
Monthly Financial report of the Village Organization: The VO will prepare a
consolidated monthly financial report based on its Trial Balance.
Financial Report for the Month of ………… of the Village Organization
Receipt and Payment Statement
RECEIPTS PAYMENTS Rs
Opening Balance 6. Initial Loan to
the SHGs
1. Cash in hand 7. Livelihood Fund
2. Cash at bank 8. Social Fund
3. Contributions
received
9. Service Sector
-Cash
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-Labour 10. Other
Expenditures
Initial loan to
SHGs
Livelihood Fund
Social Fund
Service Sector
5. Other Receipts Closing Balance
-Donations 11. Cash in hand
12. Cash at bank
Total Total
Date:………
Signatures………………………. ………………………..
Book keeper Treasurer
Note:……………………………..
Book keepers will be involved for hand holding training on Book keeping and
maintenance of accounts in Self Help Groups and Village Organizations. Series of
training programmes will also be organized on book keepers in the decentralized manner.
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CHAPTER-7
CREDIT LINKAGE THROUGH FINANCIAL INCLUSION :
Criteria a Group Should fulfill to Avail of a Bank Loan :
Banks usually apply the following criteria to assess whether an SHG is eligible for a bank
loan :
The SHGs should have credit transactions using its own common fund for at least
6 months prior to the application for a bank loan.
The group should have no loan or interest overdue, particularly to any external
source.
All members should have access to loans from the group’s common fund.
There should be evidence of regular minimum savings by all members.
The group’s minutes books and books of accounts should be properly maintained
There should be evidence of regular meetings as per the norms established by the
group with a minimum of 80% attendance at any meeting.
The groups’ common fund should be in regular circulation.
There should be periodic audit of the group’s accounts and careful follow up on
the audit report.
Terms Conditions and Procedures Involved in Obtaining a Bank Loan :
The following are the terms, conditions and procedures involved in obtaining a bank
loan:
Bank loans have a repayment period , which is fixed after the SHG negotiates
with the Bank.
The group will pay interest to the bank on the loan amount . The interest rate will
depend upon bank norms.
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The group may lend this money to individual members at any interest rate they
decide upon.
The Bank loan is to the group and not to the individuals in the group., hence if
any one person is a defaulter the whole group will be held responsible.
Banks require certain documents in order to process the loan.
It may take a considerable amount of time to process a bank loan application,
hence the group should plan well in advance if they require a loan by a specific
month or date.
The SHG must apply for a loan amount based on its capacity to reply the bank,
which in turn will depend on the SHG’s capacity to revolve the money and
recover it from its members.
When should Groups start giving Internal Loans :
It is a good practice to give loans to members from the very first month after
starting the Group.
One should not hesitate to do this just because the savings add up to a small
amount in the first month.
The poor mostly have many small requirements.
For instance, they need about Rs.200 /- every month to buy their rations.
There are many benefits of giving internal loans in the very first month of a
Group .
The members realize the benefits of the Group from the beginning and develop
fondles towards the Groups.
The Group fund grows with the inflow of interest on loans.
The members won’t have to depend on money lenders . On loans taken from other
sources, the interest is very high. The interest charged by the Group is convenient
for members.
The interest received is distributed among the members in the form of bonus. This
bonus id added to the savings of the members.
The members are forced to do bonded labour when they can’t pay outside loans.
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The loans given by the Group come associated with two good qualities- Self
Reliance and self pride.
The practice of internal loans is a sign of the confidence the group has in its
members.
How is an Self Help Group - a suitable Source of Credit for the poor :
A suitable credit delivery system for the poor must have the following features :
It must be based on affinity, so that members trust one another sufficiently to act
as guarantors for each other and utilize peer pressure to ensure proper loan use
and repayment.
It must be open to lend small amounts of money to service daily needs such as
food, clothing, education , health etc.
It must provide timely credit.
It must have affordable rates of interest
It must not require formal security
It must not lead to other forms of exploitation.
Action to be taken for Financial Inclusion:
Identification of bank branches.
Opening of accounts.
Availing services offered by bank for total financial inclusion.
Preparation of viable projects by helping good SHGs to prepare viable livelihood
projects for credit support.
Exploring possibilities of linkages with alternative credit delivery sources / micro
credit plan.
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Reference Books :
o Govt. of India Manual for SHG
o Operational Manual SHGs (JEEVIKA)
O The MYRADA experience- A manual for Capacity Building of Self Help Groups
Affinity Groups – 2nd
Addition.
O The Micro Finance Review Journal of the Centre for Micro Finance Research –
Bankers Institute of Rural Development, Luknow.
O A handbook for trainers on Participatory local Development – FAO Regional
Office for Asia and the Pacific, Bangkok, Thailand, August 2003