13
I
was one of the stakeholders who piloted SHG Bank Linkage
programme and also had the pleasure of participation in the
journey from a small pilot programme to one of the World’s
largest Microfinance Programmes. Rural Finance has always
been the centre stage of the Development agenda of Indian Policy
makers. 1980’s witnessed a growing and serious concern about
the quality of delivery of rural finance, its depth and breadth and
particularly, the outreach to marginalized sections of society, in
other words qualitative inclusive growth. This resulted in: A series
of brain storming sessions, Seminars, Workshops, Study tours to
some of the countries where new initiatives in Microfinance were
taking place, constituting committees and reports etc. There was
also passion to see the birth of a new generation bank in India
on the pattern of Bangladesh Grameen Bank. NABARD was the
springboard for policy initiatives. The outcomewas the SHGBank
Linkage model which is a blend of India’s success in building rural
financial infrastructure and Grameen Banking Microfinance
model with its variants followed in certain regions of the world.
The wisdom in development of this policy initiative lies in the
growth and evolution of SHG Bank linkage programme into one
of the world’s largest Microfinance programme. Various African
countries also showed interest in adopting this model. Credit is
due to NABARD who passionately piloted the programme with
policy support of RBI/Union Government and NGO sector.
Dr P Kotaiah
Former Chairman, NABARD
