Monday, 18 January 2021 : Local To Global News
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Management of Micro Finance Scheme

The Self Help Groups Bank Linkage Programme has emerged as the major Micro Finance programme in the country

The Self Help GroupsBank Linkage Programme has emerged as the major Micro Finance programme in the country, which is being implemented by Commercial Banks, Regional Rural Banks and Cooperative Banks. As on March 31, 2007, 29.24 lakh SHGs have been linked to banks involving a total credit flow of Rs. 18,040 crore cumulative figure since 1992. Similarly, under Swarnjayanti Gram Swarozgar Yojana, 43551 SHGs were disbursed loan amounting to Rs.26,150.74 lakh, which is 64% of the total loan disbursed under the scheme, during the year 2006-07. The Nationalised Banks have a predominant share in the lending under this scheme.
Banks have been advised that micro credit should form an integral part of the bank's corporate credit plan and should be reviewed at the highest level on a quarterly basis. They have also been advised to focus on relatively less banked areas, engage in capacity building and empowerment of the groups to the desired extent and adhere to then-system and practices and lending policies with a view to ensure better transparency and people friendly practices.
The Government of India has introduced the Micro Financial Sector Bill, 2007 on 20th March 2007 in the Lok Sabha, which envisages a formal statutory framework for the promotion, development and regulation of the micro finance sector.
This information was given by Shri Pawan Kumar Bansal, Minister of State for Finance in reply to a question raised by Shri Shahid Siddiqui in the Rajya Sabha today.

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