While Punjab may be a frontrunner on numerous parameters, it is lags behind other states on the micro credit front. States like Andhra Pradesh, Karnataka and Tamil Nadu are doing exceptional work in this area. Notably, in Andhra Pradesh, the number of credit linked self help groups are close to 7 lakh with about Rs 5,000 crore bank credit circulating in the system. Compared to this, not only are the numbers to low in both Punjab and Haryana but micro credit is also a neglected area in the two states.
It is pertinent to mention that there are about 15,000 credit linked groups in Haryana and only about 9,000 in Punjab with the bank credit amounting to Rs 25 crore. Compared to this there are 29.25 lakh credit linked self help groups across the country with Rs 18,000 crore bank credit. Surprisingly, atleast 70-80% of these groups are based in the southern region.
Apprising about the developments on this front, V Ramakrishna Rao, CGM, Nabard, told FE that, “So far initiatives have been taken to upscale the micro credit movement in the state, these include, setting of targets and motivating the state machinery to work towards increasing formation of groups and their consequent linking”.
He added that “Nabard has asked the DC’s as also various government departments like women and child welfare and rural development department to form more groups.
In addition, the regional rural banks (RRBs) have also been asked to act as self help promoting institutes (SHPI’s).
The target for the current year has been fixed at 10,000 self help groups. In this respect, even anganwadi workers will be involved and Nabard will take up capacity building of the bank officials, DC’s and officials of different departments”.
As for Haryana, he informed that “Nabard is sensitizing Haryana also to take up issues related to micro credit seriously. It is also planning to implement the Andhra model in Punjab wherein the entire family prepares their credit plans so that all the family members get involved inincome generation activities and banks can help finance them. But this shall take time and we are planning this only during the next 4-5 years,” he added.