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VIKASAIR 27· 2025

Question 5GS2GS2

Self help groups (SHGs) create collective efforts towards financial inclusion and robust social capital. Elaborate.

Open scan (p.12)

Main Body

SHGs also called as 'Rations/half Groups' (JFM model) are a collective group of people who come together to carry out as economic activity.

Role in financial inclusion:

1Bank linkage → through SHGE Bank linkage program of Nabsard. Access to formal credit through Microfinancial agencies like banks of NBFI's etc.
2Formalization of economy by promoting digital payments by UPI & other state.
4Financial inclusion of women (e.d), (S.S) of Jan Dhan accounts are held by women

Role in Robust Social Capital:

1Enhances cooperation among members
2Counters social evils & leads to women empowerment.
3Increases Attendance on one another and helps to counter social divisions.
4Behavioral change in society among males, females & elders. Shortcoming & limitations→ (A) low penetration & diversification
Way Ahead(1) Economic survey 2023panchayats

(D) NGO - Coordinated associative SHG Model for increased cooperation

2Formalization of professional management. SHGs will be critical to solve 'ushkpd disli' vision to make it dynamic, women-centric, Bharat',
158 words3 paragraphs
  • Clearly defines SHGs and their purpose
  • Identifies multiple channels for financial inclusion
  • Provides specific statistics and schemes
  • Discusses social capital dimensions comprehensively
  • Identifies behavioral and attitudinal changes
  • Provides forward-looking solutions

Topper

VIKAS

AIR 272025

Subject & Paper

GS2GS2

Topic

Development Processes - Role of NGOs, SHGs, Donors, and other Stakeholders

NGOs and SHGs

Self-help groups and financial inclusion

Writing Stats

158

Total words

3

Paragraphs

formal academic

Tone