Paper by Sowjanya S.Shetty. Dr. V. Basil Hans and Raghavendra Rao presented at theTwo Day National Seminar on Microfinance for Inclusive Growth and Inclusive Finance: Issues and Options, organised by the Department of Economics, St Agnes College (Autonomous), Mangaluru, November 30-December 1, 2015
THE LAW OF DIMINISHING MARGINAL UTILITY
Financial Inclusion and Empowerment of Women through SHGs
Authors
Sowjanya S. Shetty Dr V. Basil Hans Raghavendra Rao
Lecturer in Economics & Associate Professor of Economics
Lecturer in Economics & Research Scholar, & Research
Supervisor Research Scholar Poornaprajna College, St Aloysius
Evening College JKSHM College, Udupi. Mangaluru Nitte Email:
[email protected] Email: [email protected] Email:
[email protected]
Objectives
To understand empowermentTo identify the role of SHGs in
empowering womenTo analyse the constraints or obstacles in women
empowerment To suggest recommendations to speed up the agenda of
financial inclusion and empowerment through SHGs. Methodology
This paper is based on the secondary data obtained from various
published work such as books, reports, articles, magazines,
periodicals, electronic web materials. In addition to this the
researcher has made use of the data and other information
pertaining to microfinance, the growth of SHGs, and performance of
SHG-Bank Linkage from NABARD Annual Reports.
Financial ExclusionGenerally there can be two types of financial
exclusions namely people who do not have any access to any
financial institution and people have limited access to banks and
other financial services.Financial literacy is a critical
ingredient of financial outreach because it enables individuals to
take informed decisions about their financial choices.
Women EmpowermentWomen empowerment and their full participation
in all spheres of society are essential for sustaining the economic
growth the nation.Empowerment includes:higher levels of literacy
educational attainment awareness of rights and responsibilities
active participation in economic activitiesbetter healthcare equal
access to productive resources and improvement in standard of
living. Obstacles to Women EmpowermentSocial and cultural
constraints like gender inequality, early marriage, family (dual)
responsibility and low mobilityEducational constraints including
low education Institutional constraints include availability of
banking and financial institutions and lack of banking habit. Lack
of awareness and absence of ambitions for the achievement or less
motivated.Economic and financial constraints include poor economic
status especially among the rural women Political constraints
include less participation of women in politics. This factor halted
women from prevailing on the political will to solve local
problems.Legal constraints that keep women still in an unjust and
uneasy situation
Role of SHGs in the empowerment of women: Provides access to
economic resources like money and thereby enable women to spend
them on productive and consumption needs.Enables women to
participate in decision making. Enhances the economic and social
status of women at family and society level.Opportunities of
self-development through imparting them education, training and
practical knowledge.Enables to participate in socio-political
decision making at local level Role of SHGs in the empowerment of
women:Brings unity and integrity among the members, it removes any
type of disparities like caste, religion, language, age
etc.Mobilises resources to develop their enterprises and their
dwellings slowly overtime. Financial services enables the poor to
leverage their initiative, accelerating the process of building
incomes, assets and economic security.
SuggestionsRemoval of gender inequalityFinancial literacy and
awareness through training programmesUnderstanding the needs of
clients by MFIs while lending.Need to educate the members and
borrowersNeed to imbibe modern skills through rigorous training to
members.Removal of interference by middlemen between SHGs and bank
linkage.
SuggestionsEncourage rural penetration of financial institutions
Continuous supervision and strict regulation on working of SHG
activities.Eliminate wage differentials between men and
women.Encourage women to participate in income generating
activitiesExpenditure on education upscale as an
investment.Awareness and encouragement of daughters education is
essential. Extension of services and transparency in
activities.Encourage the growth of the tertiary sector to focus on
women empowerment Conclusion:
SHGs are playing a positive and constructive role in rural
development as they have made women to contribute for the socio
economic progress of the nation. Microfinance has ensured easy
access to financial services and credit to rural households and
poor women being space maker of development, both in rural and
urban space. Total empowerment of women should be the goal to
authenticate the pro-people policies and programmes in the country,
including Jhan-Dhan, Skill India and Start-up India, Stand up
India'. More initiatives, innovations and interventions in the
arena of SHGs will augur well in strengthening the agenda of
developmentTHANKYOU
