From Collective Savings to Financial Agency: Reframing the Role of Self-Help Groups in Rural India

Abstract

Financial inclusion and rural socioeconomic development have found new ammunition in the shape and form of Self-Help Groups (SHGs) in rural India. Collective savings and credit access are, however, not their only function but also enhancing women's financial agency. This study considers the impact that SHGs have on their savings habit, financial literacy, decision-making autonomy and control of financial resources. The study is designed descriptively and analytically research design with the suggestion of collecting a primary data by conducting structured questionnaire to 200 SHG members and secondary data. To analyse the relationship between SHG participation and financial agency, percentage analysis and correlation techniques are suggested. Thus, it is suggested to make financial agency percentage analysis and correlation for analysing the relationship between SHG participation and financial agency. The study places greater importance on the inclusion of financial literacy, autonomous decision making and financial resilience to furniture activity in order to ensure sustainable economic empowerment of the rural women.