Transparent delivery for Government Schemes in Rural India

As ET reports :

Self Help Groups (SHGS) are today considered the answer for the transparent delivery of a host of government schemes, from education to credit. But SHGs are no different from the state’s much touted and now discredited cooperative credit societies.

The SHG channel for delivery of credit especially in the rural areas and the Nabard’s preference for this channel are well known. However, a note of caution is also being sounded. “What is the difference between a credit society and an SHG? This is new wine in an old bottle since group dynamics play in both cases.

Credit societies have shown their unsustainability. Inn future, politicians could use them as a forum for exploitation,” Porwal stated.

He was speaking at the Nabard’s state credit seminar here. Supporting Porwal’s stance, S C Basu, chairman and MD, Bank of Maharashtra, said the farmer needs support from multiple agencies. While SHGs have been eulogised everyhwere and are successful now, there is a need to look if there are any inherent defects in them.