Of Self Help Groups And Financial Inclusion In Poverty Reduction

Financial inclusion, in its narrowest connotation, can be construed as an endeavour that provides people, especially those in the hitherto un-banked region, a bank account.

- T S Haokip

However, that mere possession of a Bank account cannot bring wonders, in addition to the fact that the same is incomplete to define the intended meaning of financial inclusion. What is critical is the facilities endowed to the individuals having a bank account. The Direct Cash Transfers have considerably controlled the leakage of funds meant for targeted beneficiaries-poor.

Also, the poor can have access to insurance products with nominal premiums through their Bank accounts. Not to forget is the saving habits that could also be inculcated, encouraged, and improved. Most importantly, financial inclusion will have its impact when credit facilities to the poor have seen a considerable improvement both in quantity and quality.

In one of my field visit to a tribal village in Andhra Pradesh, when I was interning with SERP (Society for Elimination of Rural poverty) in 2010, I had spoken to a woman, as part of my survey on the performance of SHGS, whose family came out of poverty. The woman said, My husband worked in a factory but after his health deteriorated he could not continue his work. She expressed her helplessness to feed her three children with the meagre wage she'd earn. Then I shared my problems with members of our SHG.