Banking the unbankable: impact of micro finance initiatives for empowerment and inclusive growth

The inclusive growth perspective being people-centered approach includes all the dimensions of development in a holistic and synergetic manner. The paper examines the impact of NGO-SHG micro credit as a tool for infusing significant behavioural changes leading to socio-economic empowerment among micro finance (MF) beneficiaries from Jammu division of J&K state. It is based on primary data collected from a random sample of 157credit -linked Self Help Group (SHG) beneficiaries that was further analysed using exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). The results supported positive impact of SHGs in bringing behavioural changes, socio-economic development and savings. For upliftment of poor and marginal communities and bringing them within the ambit of growth, steps needed are intensive penetration and publicity of SHG-bank linkage programme, motivating Regional Rural Banks (RRBs) and Cooperative Banks to act as Self Help Promoting Institutions (SHPI), providing training for skill up gradation of group members, enhancing investment in agri-technology, rural infrastructure and encouraging indigenous innovations in various socio- economic and political institution.