Financial Inclusion: A pathway for Economic empowerment of Self-Help Groups

Abstract

Financial inclusion’ implies access to financial education and the assimilation of vulnerable groups in society. India as a developing country has a broad spectrum of challenges; one of the major challenges is awareness of financial knowledge to every citizen. As per the Reserve Bank of India, financial inclusion can be measured on three scales- bank account, usage of savings account, and the quality of banking services. Self-help groups (SHGs) play a prolific role in the upliftment of the socio-economic environment of rural India. The objective aims to understand the progress of the savings linkage of SHGs with banks. The states have been divided into six different regions, the northern region, eastern region, central region, western region, southern region, and northeast region. The data is collected from official reports of NABARD based on a study conducted from 2021-22 to 2023-23. The findings of the study state that there has been significant growth in the northeast region and eastern region in terms of several SHGs savings linked and the amount of savings. The study only covers the dimension of financial inclusion which is owning a bank account. The other dimensions namely, access and quality of financial resources can enhance the scope of the study and add value to the overall gist of financial inclusion. The support of banks in the upliftment of the Self-Help Groups savings linkage program is truly a remarkable step and the growth trends show an upward financial journey for women in rural India.