Over Eleven Lakh Crore Rupees in Loans Provided to Women Self-Help Groups via the Government's DAY-NRLM Program: Statement by Shivraj Singh Chouhan
The Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) has emerged as one of the world's largest poverty alleviation and financial inclusion initiatives, with women at its core. Over 10.05 crore rural households have been organised into nearly 90.9 lakh Self-Help Groups (SHGs) across India, driving transformational change not only within households but across entire communities.
Launched by the Ministry of Rural Development, DAY-NRLM aims to reduce rural poverty by facilitating access to self-employment and skilled wage employment, promoting financial inclusion through bank linkages, training, and market access, and encouraging social empowerment by organising SHGs and federations.
The mission's success is evident. Evaluations, including a 2019-20 impact study across nine states, indicate that sustained exposure to DAY-NRLM significantly improves incomes and livelihoods of participants, strengthening women’s financial independence and contributing to poverty reduction.
Complementing NRLM, the Lakhpati Didi initiative specifically targets "didi" or elder women leaders within SHGs to expand their entrepreneurial activities, further boosting financial self-reliance among rural women. Although detailed metrics for Lakhpati Didi's outcomes are less publicly detailed, it is positioned as a key supportive effort under the broader DAY-NRLM framework to scale women’s income-generating capacity and leadership.
The banking sector, particularly 'Bank Sakhis', have played a vital role in this journey by bridging the gap between banks and rural communities. 'Bank Sakhis' are trained women from within the SHGs who assist with transactions, loan applications, and documentation. They also raise awareness about insurance, pensions, and other financial schemes.
Simplified banking procedures under priority sector lending have been implemented, making it easier for SHG members to access credit and financial services. Linking bank accounts with Aadhaar and mobile numbers has improved transparency and operational ease for SHG members.
The repayment rate for loans disbursed under DAY-NRLM remains over 98%, demonstrating the financial discipline and effective grassroots implementation of the program. The Community-Based Repayment Mechanism (CBRM) is being strengthened for timely loan recovery and to sustain the programme's success.
Union Agriculture Minister Shivraj Singh Chouhan highlighted the success of DAY-NRLM and the transformation of rural women's lives through SHGs. He described the achievement of rural women as a powerful reflection of what can be accomplished when women are given trust, opportunities, and the right support systems.
As of now, over Rs 11 lakh crore in loans have been disbursed to women SHGs under DAY-NRLM, contributing significantly to the nation's development. The DAY-NRLM stands as a model of financial discipline and effective grassroots implementation.
Prime Minister Narendra Modi will release the 20th instalment of PM-KISAN scheme from Varanasi on August 2, benefiting over 9.7 crore farmers. Although this fact is related, it is not directly about the DAY-NRLM.
In conclusion, the DAY-NRLM and the Lakhpati Didi initiative have significantly advanced financial independence for rural women by institutionalising self-help collectives, improving access to credit and skill development, and fostering entrepreneurial initiatives. This, in turn, has improved rural livelihoods and reduced poverty systematically.
Science can play a key role in enhancing the health-and-wellness of women in rural areas by providing comprehensive training to Bank Sakhis, who facilitate transactions and educate SHG members about insurance, pensions, and financial schemes. This training could also cover women's health and wellness, thereby contributing to the comprehensive development of rural women within the DAY-NRLM.
In the realm of business, the success of the DAY-NRLM can serve as a case study for effective financial inclusion and poverty alleviation initiatives globally. The mission's innovative approach to entrepreneurship, credit access, and women's empowerment can inspire similar strategies within the health-and-wellness and finance sectors, further fostering global economic growth and sociological development.
