Abstract

Inclusive growth is an emphasis towards more equitable distribution of income and building
capacity n terms of better health and education.

According to the India Development Report (DR) 2008 released by the Indira Gandhi institute
of Development Research(iGDiR) report points that present patter of growth has the potential
for widening inequality. The paper also contains the discussion of the history and evolution of
microfinance and how SHG has become an important tool for financial inclusion. The paper
emphasis on position of scheduled caste in society and why they have been excluded from
financial inclusion and also stresses the need to understand the dynamics of financial inclusion.
The formal financial system do not provides access to financial service for poor household. The
formal system requires that the people who borrow loans from lending institution should have
collateral or constant source of income so that they can pay interest according to their terms and
condition. SHG- Ban linkages have emerged as one of the biggest programme of financial
inclusion in the world.

The committee of financial inclusion (CFi) constituted by the Central government in June 2006
under the chairmanship of C.Rangarajan emphasized the urgent needs for addressing the issue of
financial inclusion. NSSO data says that 51.4% of total farming families i.e. 89.3 million do not
have access to credit. The important recommendation is launching of a National Rural Financial
inclusion Plan with the target of providing access to comprehensive financial services including
credit to 50% of the financially excluded households 55.77 million by 2012 through rural
branches of commercial bans and regional rural bans.

SHG- ban linkages has significantly contributed the social and economic improvement of the
member households of SHGs assets creation and incomes. Bihar is catching up with other states
in SHG-Ban linkages . As of June 30 2010 185600 SHGs were credit linked and total credit flow
to these SHGs was rs.1003 crore. Bihar has only a share of 1.69%of all the SHG in India.
Although has a huge potential to form 6.25lah and only 1.20 lakh SHG are reported to have been
formed. Bihar constitutes 15% of the total population state and major chunk of the population are
socially economically and educationally backward. They are mainly laborer and living below the
poverty line. SHG facilitated the SC women to overcome the existing barriers of formal financial
institution.

I have conducted my research in Masaurhi Bloc in Patna District. The main objective of the
study is to examine the SHG group of SCs members in the financial inclusion process. What
problems they face in getting loans from the banks .participation of SC members n meeting and
decision making. How loan is helpful in generating incomes and supporting livelihood. How
members are participating in social process and also what the factors for their for their exclusion.