SHG (IB CB ) IN INDIA

Social mobilization and building strong institutions of the poor is critical for unleashing the innate capabilities of the poor. Strong institutions of the poor such as SHGs and their village level and higher level federations are necessary to provide Space, Voice and Resources for the poor and for reducing their dependence on external agencies The institutions of the poor will empower them and also act as instruments of knowledge and technology dissemination, and hubs of production, collectivization and commerce.

Why Institution Building

 Social mobilization and building strong institutions of the poor is critical for unleashing the innate capabilities of

the poor.

 Strong institutions of the poor such as SHGs and their

village level and higher level federations are necessary

to provide Space, Voice and Resources for the poor and for reducing their dependence on external agencies

 The institutions of the poor will empower them and also

act as instruments of knowledge and technology dissemination, and hubs of production, collectivization and commerce.

PROPOSED INSTITUTIONAL STRUCTURE UNDER NRLM.

CLFVLF ( 10-20 SHGs)VLF (10 -20 SHGsVLF (10 -20 SHGsVLF (10 -20 SHGs)SHG 10-15 MembersSHG 10-15 Members SHG 10-15 MembersSHG 10-15 SHG 10-15 MembersSHG 10-15 Members SHG 10-15 MembersSHG 10-15 SHG 10-15 MembersSHG 10-15 Members SHG 10-15 MembersSHG 10-15 SHG 10-15 MembersSHG 10-15 Members SHG 10-15 MembersSHG 10-15

SHG 10-15 Members VLF ( 10-20 SHGs)VLF (10 -20 SHGsVLF (10 -20 SHGsVLF (10 -20 SHGs)SHG 10-15 MembersSHG 10-15 Members SHG 10-15 MembersSHG 10-15 SHG 10-15 MembersSHG 10-15 Members SHG 10-15 MembersSHG 10-15 SHG 10-15 MembersSHG 10-15 Members SHG 10-15 MembersSHG 10-15 SHG 10-15 MembersSHG 10-15 Members SHG 10-15 MembersSHG 10-15

SELF HELP GROUP

SELP HELP GROUP

 Self Help group is an informal association of women

from poor households.

 It is an organization in which members with similar

socio-economic conditions come together around a common interest.

 The size of the SHG normally 10-15 members only.

 Self help and mutual help are the core principles.

 SHG provides equal opportunities to all members

 Meetings,Savings,internal lending & Book keeping are

the key elements for the group development.

SHG - PANCHASUTRAS

Regular weekly meetings

Regular savings in weekly meetings

Regular internal lending

Regular Repayments

Regular Book Keeping in the weekly meeting

SHG Management & Norms

 After formation of the SHG the members should conduct their

group meeting and they have to finalize Management & Financial Norms.

 The members will decide and give a name to their SHG

 The SHG will decide the Meeting Day, Place & Time for their

scheduled meetings

 The SHG should conduct weekly meetings and they have to sit

in a round manner to ensure active participation of all members.

 The SHG members shall select 2-3 leaders to look after their

bank transactions.

 The SHG shall designate one of the members by rotation to

preside over the regular weekly meetings.

 The SHG shall maintain relevant Books of Accounts.

 The SHG shall identify a book keeper preferably from the

same SHG members or their families,to write their records in their scheduled meetings The payment shall be paid by SHG

 The SHG members will finalize the norms for imposing fines

on absentees, late comers and defaulters etc.,

SHG Management & Norms

 The Members of the SHG shall decide their savings amount to be

contributed by the members to the SHG based on the ability of the poorest women in the SHG.

 The SHG shall open a Bank account on the name of the SHG.

 The group shall give loans to the members on the basis of priority

like., poverty, activity, seasonality.

 The SHG shall maintain transparency among the members like

taking decisions, sanction of loans, writing records in the meetings.

 The SHG should decide the minimum balance to be maintained with

the group to meet the emergency needs of the members.

Continue……

• The SHG federation has to be necessarily of SHGs, by SHGs and for SHGs

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BENEFITS FOR PROMOTING FED.

• Reduce cost of promoting new SHGs

• Reduce transaction costs

• Provides value added services

• Reduce default rates at all levels

• Empowerment of the poor by developing local human capital

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SHG FEDERATIONS-GUIDING PRINCIPLES

• Women create SHGs & SHGs create federations

• Services must benefit a large number of member SHGs

• Fed for SHGs and not SHGs for federation

• Service provision at the appropriate level – lowest level

• Survival dependent on member SHGs using the services

• Maximum number of SHGs in a federation from a small area

• Active & responsible SHGs have right to make decisions & vote

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VO STRUCTURE

Federation Structure

VO structure

 VO shall be formed in village/habitation consisting of

minimum 10-20 SHGs.

 VO General Body : All SHG members shall be the VO

General body Members and VO shall conduct its GB meeting Bimonthly/half yearly.

 VO Executive Committee : Each SHG Leader become the

VO EC Members VO EC meeting shall be conducted every month.

 VO Office Bearers : VO OB shall be elected by the SHG

representatives for the period of 2 years.

What is Village Organization

VO is a primary level federation where all SHGs members are its members at village level.

It is a village level organization in which SHGs representatives attend and conduct monthly meetings.

it is a village level forum of the poor where all members participate directly and address such issues which can’t be solved

in their own SHGs.

It acts as an intermediary organization between SHGs and CLF to bring village level issues of the poor to cluster level forum and assists the members in seeking solutions Continue…….

Cluster Level Federation

 CLF shall be a secondary level federation formed in a cluster level

 All the VLFs of the cluster shall be the members of the CLF.

 CLF should have the GB,EC,OB like VLF

 CLF should play the role of the social and financial

intermediary

 CLF should be registered under MACS ACT

Cluster Level Federation

Office Bearers

Major interventions by SERP (AP) through Federations

Sector development services

 Lobbying/advocating

 Strategy/-planning

 Information/-data-flow

 Sector norms and rules, monitor awareness

 Promoting update of internal structures, procedures

 Advisory/ training services

 Hiring professional external services

 Organize/manage SOC (monitoring, audit, grading, stabilization, rehabilitation, sanctioning)

 Problem solving

Financial services

 Credits (or loans)

 Savings, deposits

 Bank linkages

 Mobilizing external financing resources

 Access to state-supported finance programs

 Family counseling centers

 Anti liquor campaigns

NIRD,Hyderabad