Sangareddy, March 24: The State government has been seriously considering establishment of a special bank for the Self Help Groups (SHGs). According to sources, a proposal to this extent was already forwarded to the Union government for examination and approval.
A senior Union government official who visited the district recently made this point while discussing other issues pertaining to the SHGs and MFIs. The officials feel that there was a wide gap between the financial needs of the people and the finance being made available to them by the government, though the public sector banks were extending financial assistants to the SHGs. The gap was being filled by the Micro Finance Institutions (MFIs), which were doing roaring business. The MFIs in the district were doing business to the tune of Rs. 200 crore a year.
The rural people are struggling a lot for getting money to meet their financial requirements and the officials are trying to find out a solution. At this juncture, the idea of running a bank, in all commercial way, by the members of the SHGs for the SHGs struck the minds and it was keenly being explored.
“The SHGs are making a turnover of more than Rs. 500 crore a year. The specialised banks can focus on requirements of SHG women,” said a senior official on condition of anonymity.
-Agencies