"Loans will be extended to Self Help Groups at 7 per cent from April 1 while in another 150 districts, selected on parameters such as naxal-infested areas, tribal areas and other categories, interest rate is further slashed to four per cent," Ramesh said while addressing a national conference on community-based approaches for inclusive growth.
Ramesh said the SHGs could take the opportunity to act as franchise for 'Direct Benefit Transfer Scheme' to ensure that the cash is reaching to targeted beneficiaries.
"This is not a scheme where money is deposited in the accounts. It involves cash transfer and SHG women can utilise their network as banking correspondents for effective delivery of cash at the door steps," the minister added.
Currently, rates at which the loan is provided to SHGs vary from state to state, while in Andhra it is 4 per cent.
Ramesh said the women SHGs should expand their horizon beyond finance-related issues and also deal with other aspects like human trafficking, sanitation and manual scavenging which is still prevalent in some parts.
Recalling his experience when Myanmar leader Aung San Suu Kyi had visited Andhra Pradesh, Ramesh said that seven out of ten women, who are typically part of a SHG, complained that they did not have toilets at their homes.
Also Read
"A recent survey indicated that there are around 26 lakh dry-latrines in the country and they are serviced by more than 2 lakh women. We should bring them out of that and rehabilitate," Ramesh pointed out.
According to him, Andhra Pradesh had registered 1,500 women SHGs as franchisees to operate post office accounts and the model could be replicated in the banks too in the coming days.
City-based resource organisation APMAS chairman K Madhava Rao presided over the function where RBI deputy governor KC Chakrabarti among others were also present.