On the occasion of the launch of Bihar Rajya Jeevika Nidhi Saakh Sahkari Sangh Limited initiative, the Prime Minister highlighted the importance of financial inclusion of women SHGs for women empowerment.

About the Initiative

• Objective: Empower rural women entrepreneurs in Bihar with easy access to funds at affordable interest rates, digitally for Jeevika members.
  • Jeevika, the Bihar Rural Livelihoods Project (BRLP) for poverty alleviation supports Self-help Groups (SHGs) to promote rural women entrepreneurship.
  • It aims at reducing dependence on Microfinance Institutions (MFI) who charge high interest rates.

Role of SHGs in Women Empowerment

• Economic empowerment: SHGs provide a platform for access to formal credit, employment and income generation, providing women agency in decision-making in her family. E.g., SHG-Bank Linkage Programme.
• Social empowerment: Collectivism in SHGs promotes development of self-confidence and social capital, empowering women to tackle gender biases in society. SHGs benefit women in healthcare and child development. E.g., Kudumbashree in Kerala.
• Political empowerment: SHGs enable women to advocate for their rights and interests and participate in implementation of policies at grassroots level. They also empower women for political participation in leadership roles.

Challenges: Limited financial resources limit scaling of enterprises, regressive household and community attitudes (e.g., resistance from family), monopoly of dominant groups hindering access to equitable benefits, etc.