Stree Shakthi

Introduction

The programme was launched during 2000-01 and it is being implemented throughout the
state to empower rural women and make them self-reliant. Stree Shakthi Groups are formed at
the village level to inculcate the savings habit in the members empowering the women
economically. About 15 to 20 women members who are from below poverty line families,
landless agricultural laborers, SC/ST women join together. Stree Shakthi Groups are formed
through Anaganwadi workers and taluk federations.

At present there are 1.40lakhs groups functioning in the state approximately 21 lakhs
women members are organized.

AIMS AND OBJECTIVES:

1. To strengthen the process of economic development of rural women and create a conducive
environment for social change.

2. To form self-help group based on thrift and credit principles which builds self-reliance and
enable women to have greater access and control over resources. 3. To increase the income levels
of rural women by engaging them in; Income generating activities and creating financial
stability. 4. To provide opportunities to the members of the groups to avail the benefits of other
departmental schemes by converging the services of various departments and lending
institutions to ensure; womens access to; credit financing.

SAVINGS AND INTER LOANING

Stree-shakthi group members have saved Rs.1118.05 crores since inception.120155

groups have availed bank loans to the extent of Rs.1305.97 crores and have done internal lending
of Rs.3215.88 crores to take up various income generating activities.
The average number of members works out to 14, which is a good number for sustainability of
the activities of the groups. However, the coverage of members was hardly 14% of the eligible
population in the state. Across social groups, about 21% of members were from SC community,
8% from ST community and the rest 72% from all other communities. Hence, the participation of
SC and ST community women is in proportion of their respective shares in total population.
However, efforts need to be made for larger inclusion of women from these sections for
benefitting them to a greater extent.

Financial Inclusion of SSGs

That the SHGs help in achieving financial inclusion, therefore, governments are using them for
the said purpose through various means. The Government of Karnataka has initiated many
schemes in this regard, as mentioned previously. The SHGs are provided with revolving fund for
beginning their income generating and other activities. While the data on SSGs availing the
revolving facility is not available but the data on the amount of the fund provided is. As at the
end of 2014-15 the total revolving fund disbursed to the SSGs amounted to Rs.88.11 crores
throughout the state, which amounts to Rs.6,290 per SSG. SSGs in Bengaluru, Bengaluru
(Rural), Chitradurga, Tumkuru, Chikkamagaluru, Dakshina Kannada, Chamarajnagar, Belagavi,
Bidar, Yadgir and Raichur received revolving fund higher than the state average. However, the
lower value of the co-efficient of variation implies that SSGs in all the districts have been
equally enthusiastic in receiving revolving fund. However, a crucial indicator of financial
inclusion is the proportion of SSGs availing credit from banks which is a part of the overall
SHG-Bank linkage scheme. It may be seen from Table 2 that SSGs in Bengaluru, Chitradurga,
Udupi, Mysuru, Chamarajanagar, Bagalkot, and Bidar districts have 100% bank linkage. On the
other hand, Belagavi, Dharwad, Vijayapura, Kalaburagi, and Kolar had bank linkage between 90
and 100%, and the state average is around 91%. Hence, there is still a large chunk of groups,
especially in backward districts mainly from north Karnataka that is not linked to banks.
Geographical Spread of SSGs and their Membership

At the end of March 2015, the state had formed 1.40 lakh SSGs with a membership of more than
20 lakh women members. The average number of members works out to 14, which is a good
number for sustainability of the activities of the groups. However, the coverage of members was
hardly 14% of the eligible population in the state. Across social groups, about 21% of members
were from SC community, 8% from ST community and the rest 72% from all other communities.
Hence, the participation of SC and ST community women is in proportion of their respective
shares in total population. However, efforts need to be made for larger inclusion of women from
these sections for benefitting them to a greater extent.

Books of Records maintained by the Groups

It is necessary for organizations to maintain books of records pertaining to their functioning

which should include the information on the administrative and financial aspects. Such records
help in maintaining transparency in the management of the organizations and instill confidence
in the mind of the members about their resources and also about their responsibilities. The Stree
Shakti Self Help Groups have been maintaining different type of books of records. Maximum
number of 62 respondents who represents the selected Stree Shakti Self Help Groups have
mentioned that their groups maintained all the five types of books viz. 1.Resolutions of the
Group meetings 2. Members contributions to the Group 3.Loan Account Book 4.Groups Bank
Passbook 5. Members Personal Passbook The survey has revealed that maximum of 62
respondent members of Stree Shakti Self Help Groups (88.6%) have indicated that their groups
maintained all the above type of books. A small number of 07 respondents indicated that they
maintained only the first four types of books. A single respondent mentioned that the group
maintained only members personal passbook. The responses indicate that the groups do not
follow a uniform system in maintaining books of records.

The practice of contributions by members to the Stree Shakti Self Help Groups The field survey
has revealed that all members of the Stree Shakti Self Help Groups have been making
contributions to the groups regularly and in time according to majority of 55 respondents
(78.6%) covered by the study. However some members of the Stree Shakti Self Help Groups are
fond of making contributions to their groups according to their convenience as indicated by 13
respondents (18.6%). But members of some Stree Shakti Self Help Groups levy fine ifthe
contributions is not given on the due date as indicated by 02 respondents (2.8%).

Internal lending to members by the Stree Shakti Self Help Groups

Members of the Stree Shakti Self Help Groups have obtained internal loan from the groups for
various purposes like childrens education, family health expenditure, purchase of agricultural
implements, buying of livestock or investing in income generating activities. The responses of
Stree Shakti Self Help Groups representatives have been analyzed in this context.

Repayment performance of the internal loans of the Stree Shakti Self Help Groups

Repayment performance of the Self Help Groups in India in general has been found to be very
good ranging between 90 to 100 percent on an average. The same trend is found in case of the
groups under the Stree Shakti Scheme. The responses indicate that the repayment performance of
the groups have been very good according to maximum of 54 respondents Stree Shakti Self
Help Groups accounting for 77.1%. A lesser number of 16 respondent Stree Shakti Self Help
Groups (22.8%) mentioned that the repayment performance of the loan by the members is
moderately good.

Members participation and expression of opinion in the Stree Shakti Self Help Groups

Meetings Active participation and free discussion in the meetings of the Stree Shakti Self Help
Groups is an indication of the democratic functioning of these voluntary organizations. Hence it
was expedient to elicit information on this aspect of the democratic functioning the Stree Shakti
Self Help Groups covered by the study.

The responses of majority of 53(75.7%) respondent Self Help Group indicate that all members
participate actively in the meetings of the groups and freely discuss the issues.
A lesser number of 13(18.6%) respondents mentioned that all members actively participate but
few members discuss freely.

A marginal number of 02(2.9%) respondents indicated that a few members actively participate
and issues freely in the meetings of the groups.

An equal number of 02(2.9%) respondents mentioned that all members actively participate in
the meetings but none discuss issues freely.

Through the inception of the Self Help Group

Bank linkage program the banks have helped thousands of women from poor families by
providing loans and other financial services to them. With the help of these loans the poor
women have been able to change their destinies. The micro credit program of the banks is able to
provide dignity, self-esteem and independence to women by getting credit for various production
oriented income generating activities. The various financial services such as savings, loans,
insurance, payments, remittance facilities and financial counseling 104 or advisory services are
provided by the banks to Stree Shakti groups. The Stree Shakti Self Help Groups - Bank linkage
approach under the Stree Shakti Scheme is found to be an effective instrument through which
Stree Shakti women can access hassle free formal credit without any collateral security and
simultaneously improve their thrift habits. This approach also contributes to a social
empowerment of women members. 4132 Stree Shakti groups of the study area are able to open
the bank accounts in the various banks. About 93 branches of different banks (Grameena Vikas
Banks and Commercial Banks) involved in the Stree Shakti scheme of the study area. And 2735
Stree Shakti availed loans from banks. So an attempt has been made by the researcher to collect
the opinions from the bank officials through the formal and informal discussions to study the
working of Stree Shakti groups. Bank officials have appreciated the loan repayment habit of the
Stree Shakti groups which is about 90%. The bank officials suggested that necessary steps to be
taken educate the Stree Shakti members and to provide them market facilities to sell the products
of Stree Shakti groups and to take timely action to release the subsidy amount and to formulate
separate programs to help the women members of Stree Shakti groups.