NPA Of Self-Help Groups Down To 1.8%: Rural Development Minister

Non-performing assets of self-help groups (SHGs) have gone down to 1.8%, Union Rural Development Minister Giriraj Singh said on Tuesday, and he called upon banks to provide incentives to those having NPAs of less than 1%.

Speaking at an event here, Singh said the NPA for self-help groups was 9.58% in 2014. "NPA has come down to 1.8% as I speak..." he said.

Singh stressed that loans given to those in need do not become NPAs.

"When I was the Cooperative Minister, I sent a team to Bangladesh to understand why NPA was lesser there. When they returned, I understood that need-based finance never becomes NPA. The loans given at face value become NPAs," he said.

The minister said that a waiver of 3% will be given on the interest being paid on loans. He also urged banks to provide incentives to those with NPAs of less than 1%.

Singh was speaking at a gathering after launching 'Sangathan Se Samridhhi—Leaving No Rural Woman Behind', a national campaign aimed at mobilising 10 crore women from eligible rural households into self-help groups.

The minister said that in 2014, only 2.35 crore women were part of self-help groups, and the number has increased to more than nine crore now.

"Our aim is to increase the number to 10 crore by 2024," he said.

He said the government is working on covering SHG workers under a pension scheme.

The campaign's primary objective is to mobilise disadvantaged rural communities unaware of the benefits of the Deendayal Antyodaya Yojana, or National Rural Livelihoods Mission.

The campaign will be organised in all states, with the expectation of forming more than 1.1 lakh SHGs.

SHG members from different states participated in the event, and women from Bihar, Tripura, Telangana, Maharashtra, and Haryana shared their experiences on how the DAY-NRLM SHG movement supported them to come out of poverty by creating livelihood opportunities that led to their economic independence and social empowerment.