Loans to Self help groups, MSMEs all time high, poverty reduction rate fastest : Independent survey

The poverty reduction rate under Modi Government has been all time high.

Source : WikiMedia

The rate of reduction of poverty in India has speeded up recently in accordance with the worldwide Multi-dimensional Poverty Index 2018 and the notice released by the Brookings Institution.

The Deendayal Antodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) is aimed at alleviation of rural poverty through building sustainable community institutions of the poor. It attempts to mobilize Roughly 9 crore families into SHGs and connect them to sustainable Livelihood opportunities by building their own skills and empowering them to Access formal sources of financing, entitlements and solutions from both Private and public businesses. Constant capacity building of rural poor girls will guarantee their Social, economical and political empowerment and advancement.

Progress during April 2014-November 2018

The achievements of the Mission in key areas are furnished below:

a) Mission Footprint : During the period, 2411 additional blocks have been covered under the “Intensive” strategy. Cumulatively, the Mission is being implemented in 5,123 blocks spread across 612 districts of 29 States and 5 Union Territories (UTs).

b) Community Institution Building : Between April 2014 and November 2018, more than 3 crore rural poor women have been mobilized into 26.9lakh Self Help Group (SHGs) across the country. Cumulatively, more than 5.63 crore women have been mobilized into more than 49.7 lakh SHGs. Further, the self-help groups have been federated into more 2.73 lakh village level federations and about 25,093 cluster level federations.

c) In addition, the self-help groups and community institutions have been provided more than Rs.5,919.71 Crores as capitalization support out of which nearly 85% (or Rs.5030.7crore) have been provided in the above mentioned period.

d) Financial Inclusion : The loan outstanding to self-help group have increased from Rs. 32,565 crores in March 2014 to Rs. 76,591 crore in October 2018. Cumulatively, Rs.1.96 lakh crore worth of bank credit has been leveraged by the self-help groups during the last five years. The quality of the portfolio has also shown a marked improvement with Non-Performing Assets declining to 2.64% in the current year. This is a result of sustained efforts made by the states to promote timely repayment of loans by the SHGs.

e) During the period 2014-19, steps have also been taken to promote alternate models for delivery of financial services. About 3050 self-help groups members have been deployed as Banking Correspondents Agents (BCAs) to provide last mile financial services including deposit, credit, remittance, disbursement of old age pensions and scholarships, payment of MGNREGA wages and enrollment under insurance and pension schemes. As of November 2018, over 16 lakh transactions amounting to Rs. 185 crores had been completed.

(With inputs from PIB.)

Must Read : T V Mohandas Pai takes on Unemployment : Debunks the false narratives of jobless growth.

About Press Information Bureau 1543 Articles
Press Information Bureau is India's official press release from the Government of India. The news taken from PIB India is free to use upto attribution.