Microfinance through Self Help Groups (SHGs) has become an important vehicle to meet the savings and credit needs of the poor, especially women in rural areas. It has been observed that the financial development of the SHGs and improved access to banking and related services not only accelerate their economic growth but also reduce income inequality and poverty.

The broader goal of financial Inclusion intervention through NRLM is also to create an ambience of trust as regards to approach of banking with poor. It aims at creating institutions of the poor who will be empowered enough to run the institution on merits of financial prudence and sustainability.

Financial Literacy programmes and community funds like RF & CIF provided under NRLM is significantly helping in breaking the initial inertia by catering to the smaller consumption and production needs of the SHG members. This also enhances the management skills of community.

But, Financial Inclusion can no longer be treated as a fringe subject. It has to be recognized as an important part of the mainstream thinking on economic development of the poor. And for this, Bank Linkage is one of the major sources for capitalizing SHGs, so that, members can avail multiple credits for taking up activities for up-liftment of their livelihood.

Assam is highly diverse in terms of geography, ethnic groups and community etc. In the state bank branch network are very unevenly distributed, so the coverage is limited. Community faces many challenges in availing the financial services though mainstream banking system. Some of the major challenges are –

 Bank branches are located in a significant distance from their villages

• Shortage of man power at bank branches
• Repeated visits to branches for completing single activity
• High cost and more time for availing financial services
• Documentation complexities etc.

Key strategies and activities proposed for promotion of:

• Financial literacy camps and trainings will be organized to make SHG members knowledgeable about finance in a way, that is relevant to their lives and allowing them to use this knowledge to evaluate products and can better utilize cash/ credit.
• Orientation workshop for bankers and stakeholders: Sensitization programmes for the Bank Branch Managers, Lead District Managers and stakeholders will be organized at state, district and block level.
• Opening of individual bank accounts: This account would be linked with the Aadhaar number of the account holder and would become the single point for receipt of all Direct Benefit Transfers (DBT) from the Central Government / State Government / Local Bodies.
• Enrollment of SHG members under Insurance & Pension Schemes: In order to provide financial security in crisis and during old age, ASRLMS is facilitating SHG members to enroll in different life and health insurance schemes under Government like Pradhan Mantri Jivan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and pension Schemes like Atal Pension Yojana (APY).
• Promotion of savings, inter-lending and other micro-enterprise practices: A comprehensive training and capacity building module on Financial Literacy and Financial Management is being developed for ASRLMS staff, community cadres and SHGs/VOs members.
• Identification, training and strengthening of Bank Sakhis: As intermediates and catalyst between banks and SHGs in providing handholding support for opening bank accounts and in availing other financial services by the SHGs and SHG members. ASRLMS has already identified a maximum of 934 nos of Bank Sakhis in the intensive blocks and placed after training.
• Promotion of SHG members as BCA: As availability of banking service at village level is very poor, with the objective of providing doorstep financial service to the rural poor (specially women), ASRLMS is promoting women SHG member as Business Correspondent Agent. Till now, ASRLMS has promoted 122 SHG members as BCA and engaged with Assam Gramin Vikash Bank (AGVB) and State Bank of India (SBI) in 8 districts of Assam.