Digitization and Integration of SHGs to Ensure Promotion and Expansion of Jan Dhan Yojana
The self help group (SHG) has been proven a practical form to promote the Jan Dhan Yojana in India’s rural areas. However, there were a lot of challenges that were faced by these self help groups to ensure that the credit is disbursed properly among those poor people who need it the most.
There is one major problem faced by these self help groups, which are working in remote areas of the country. To reach the bank branches which are located quite far away, they need to travel for almost half day for depositing the money. This is not only a hassle for the self help group members; it also results in their loss of wages.
To counteract this problem faced by the self help group members and ensure that the Jan Dhan Yojana reaches to the people below poverty line, living in the remotest of areas of Rajasthan, a pilot project is implemented. To ensure that self help group members can deposit the money in SHG accounts using mobile phone facility a mobile phone company has come forward to provide its assistance to the self help groups. Under this pilot project more than thousand self help groups are enrolled and more than 4.6 million rupees are transacted. Owning to the success rate of this project, similar projects may get implemented in the NRLM states.
The reports based on surveys, suggest that when it comes to mobile banking, India is one of the lowest ranked country. There is not only total lack of awareness when it comes to using mobile money services; people who already have mobile money accounts are inactive. Some of the RBI guidelines however, are making digital payment services in India easier than before and helping to increase the transparency and inclusion of the financial service sector.
As of now there is a huge gender gap when it comes to using banking payment services. However, the Prime Minister’s JDY has given a definite boost to bank account ownership among women who are living below the poverty line.
Today, it has become all the more important to make sure that the self help group members are aligned to the ambitious financial inclusion agenda of the PM. To ensure this integration, NABARD has also come up with a pilot project which will make sure that the communication between women self help groups and banks is completely digitalized for hassle free services.
These moves to completely digitalize the self help groups and their integration with the financial inclusion agenda will ensure that the financial services are accessed by poor people living in the remote areas, by minimizing the infrastructure limitations and increase awareness and participation by these people.