The West Bengal government has decided to create a special fund of Rs 100 crore for promoting the self help groups (SHGs) in the state.
The fund would be vested with a new organisation, that would be run by SHG members, and have bankers as well as state government representatives as board members, said Asim Dasgupta, finance minister, West Bengal, at an SHG award ceremony by National Bank for Agriculture and Rural Development (Nabard) in Kolkata on Wednesday.
The government would also request the Reserve Bank of India (RBI), to include SHG members in the board of directors of the organisation, said Dasgupta.
Under the new entity, retail outlets would also be created in district and block levels, which would not only sell handicrafts, but also sell essential commodities like rice, the minister said.
The focus area of the body will be to give market access to SHGs and conduct training programmes for their members.
Dasgupta also said, there was need to consolidate the SHGs in the state, as their integration would help villagers exchange ideas and strengthen the SHG movement.
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At present, the SHGs get funds either through bank-linked credit programme by Nabard, or Swarnajayanti Gram Swarojgar Yojana (SGSY) by gram panchayats, apart from the micro finance institutions (MFIs).
The minister also recommended that under the state level bankers committee (SLBC), a sub-committee should be created for SHG-related matters.
The SHG bank-linkage programme under Nabard covers about 40 lakh SHGs, with an estimated membership of five crore villagers.
In West Bengal, the ratio of SHG linkage under the programme is 25 per cent, with in 3.53 lakh saving-linked groups and 2.29 lakh credit-linked groups on a cumulative basis.