An overdraft facility of Rs. 5,000 will be given to verified women self-help group (SHG) members under Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) to mobilise them into self-help groups (SHGs) and foster their access to bank credits for livelihoods. Around 5 crore women will be covered under the initiative to be launched tomorrow.
The overdraft facility was announced last year by Finance Minister Nirmala Sitharaman during her Budget Speech of 2019-20 for verified SHG members in the rural areas to meet their immediate/emergency requirements. Nagendra Nath Sinha, Secretary, Department of Rural Development, Ministry of Rural Development will launch the initiative at an event that will have a discourse on rural financial inclusion and announce annual awards for performance of banks under DAY-NRLM for 2020-21.
The flagship programme of the Ministry of Rural Development, DAY-NRLM aims at eliminating rural poverty through mobilising poor women into community institutions like SHGs and strengthening their livelihood base by accessing necessary credit from banks. Launched in June 2011, as of 15 December 2021, the programme has mobilised 8.04 crore, rural women, into 73.5 lakh SHGs. By 2024, about 10 crore women are expected to be mobilised into SHGs under the scheme.
During this financial year up to 30 November 2021, 27.38 lakh SHGs have been provided credit by banks to the extent of Rs.62,848 crore. The total credit accessed by women SHGs is more than Rs.4.45 lakh crore since April 2013, inter alia to make adequate investment in productive enterprises. The outstanding balance is more than Rs.1,33,915 crore with 2.49% NPA. The mission is using Community Based Repayment Mechanism (CBRM), whereby a committee with representatives from SHGs or federations take responsibility for monitoring SHG-banks linkage and ensure prompt repayment by SHGs to banks by enforcing rules and social pressure.