Lok Sabha Question No. 382 (UNSTARRED), answered on 2018-07-19
Subject: Banking Role to Women SHGs
Ministry: RURAL DEVELOPMENT
Asked by: DHARMENDRA YADAV, Shrirang Appa Barne, VINAYAK BHAURAO RAUT, ANANDRAO  ADSUL, SHRIKANT EKNATH SHINDE, SHIVAJI ADHALRAO PATIL

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 382

TO BE ANSWERED ON 19.07.2018

## BANKING ROLE TO WOMEN SHGS

## 382. SHRI DHARMENDRA YADAV:

SHRI SHRIRANG APPA BARNE:

SHRI VINAYAK BHAURAO RAUT:

SHRI ANANDRAO ADSUL:

DR. SHRIKANT EKNATH SHINDE:

SHRI ADHALRAO PATIL SHIVAJIRAO:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) whether banking in a remote village has turned into luxury due to the absence of last mile connectivity and if so, the details thereof;
- (b) whether his Ministry has requested the Ministry of Finance to employ women's SelfHelp Groups (SHGs) to end the critical gap that is the source of harassment for the rural poor;
- (c) if so, the details thereof and the response of that Ministry thereto;
- (d) whether the growth of SHGs under National Rural Livelihoods Mission (NRLM) has made these women's bodies adept at handling finances and if so, the details thereof;
- (e) whether SHG women as Banking Correspondents would provide all banking services in villages designated under their jurisdiction; and
- (f) if  so,  the  details  thereof  and  proposals  mooted  by  his  Ministry  in  this  regard  and  the time by which a final decision is likely to be taken in this regard?

## MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT

## ANSWER (SHRI RAM KRIPAL YADAV)

- (a) : It is true that there are no adequate banking services available in extreme remote villages in the country due to absence of bank branches. In order to alleviate the problem, the Ministry  of  Rural  Development  has  been  promoting  deployment  of  members  of  Self  Help Groups  (SHGs)  under  Deendayal  Antyodaya  Yojana-National  Rural  Livelihoods  Mission (DAY-NRLM) as Banking Correspondents in remote villages after providing them training in financial services.
- (b) : Yes, Madam.
- (c) : On the recommendation of the Ministry of Rural Development, the Ministry of Finance  (Department  of  Financial  Services)  has  issued  advisories  to  banks  to  deploy  SHG members as Business Correspondents (BCs) in locations not having banking facilities and also additional BCs within the Sub Service Area (SSA) wherever it is viable. So far 1700 women SHG members have been positioned as Banking Correspondents in different locations.
- (d) : Developing capacity of SHG members to prudently manage their finances is one of  the  key  objectives  of  DAY-NRLM.  To  achieve  this,  SHGs  are  provided  training  on bookkeeping,  preparation  of  micro  credit  plan  and  financial  literacy.  Currently  SHGs  under DAY-NRLM are cumulatively managing Community Investment Funds totalling Rs.4900 crore provided under DAY-NRLM and Rs.68913 crore of bank loan, in addition to their own savings accrued as corpus. Through management of these funds, members of SHGs are acquiring and developing knowledge and skills for handling finances.

(e) : Service provided by women SHG member working as Banking Correspondents varies  from  bank  to  bank.  The  common  services  provided  include  -  opening  of  savings account, aadhar seeding of accounts, cash deposit, cash withdrawal, fund transfer andenrolment under insurance products. However, the facility to transact in jointly operated accounts of Self Help Groups has not been enabled by all banks.

- (f) : Ministry of Rural Development (MoRD) has requested Department of Financial Services to advise all banks to enable 'Dual Authentication Facility' on the BC channel so that SHGs can also do transaction in jointly operated accounts of Self Help Groups at BC points. On recommendation of MoRD, Department of Financial Services has advised the banks to enable this facility.

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