TThe Deendayal Antyodaya Yojana Nationwide Rural Livelihood Mission (DAY NRLM), a modest program of the Ministry of Rural Improvement, has sparked a quiet revolution in rural India. Round 10 billion households have been mobilized into 9.1 million self-help teams (SHGs), additional built-in into 5.35 million village organizations (VOs) and 33,558 cluster-level federations (CLFs). These SHGs have mobilized over Rs 11,000 crore of credit score from banks with non-performing property (NPAs) of solely about 1.7%.
variety of Lakhpati Didis (SHG members with an annual revenue of 100,000 rupees or extra) additionally exceeded 2 billion.
About strengthening CLF
This system led to political empowerment of girls in addition to financial and social empowerment. Most state governments have understood its significance and are at the moment specializing in direct profit switch (DBT) schemes with out attachment, corresponding to Ladri Lakshmi Yojana in Madhya Pradesh, Maya Samman Yojana in Jharkhand and Ladki Bahin Yojana in Maharashtra. Within the newest such initiative, Rs 10,000 every was transferred to over 100 crore ladies in Bihar beneath Mukya Mantri. Mahila Rozgar Yojana.
These developments have the potential to advertise ladies’s livelihoods and entrepreneurship within the subsequent part of the DAY NRLM program.
As directed by the federal government, the DAY NRLM scheme will likely be re-evaluated for the subsequent monetary cycle, i.e. from 2026-27 to 2030-31. Subsequently, now could be the appropriate time to consider the subsequent 5 years’ technique for this necessary program for ladies’s empowerment. We have to begin with CLF, which is the cornerstone of the SHG ecosystem. CLFs are sub-block stage teams organized beneath applications. As an formally registered group, most of the program’s actions are primarily based right here. Nonetheless, considerations have been raised from all quarters that the leaders of those teams are unable to make impartial choices as a result of they’re subordinated to authorities officers. Subsequently, any longer, strengthening/revitalizing the CLF must be the principle focus space, in keeping with the unique imaginative and prescient of this system. Actually, CLF must change into a really community-owned laboratory, free from authorities interference. Profitable fashions of CLF, for instance Kudumbashree in Kerala and Jeevika in Bihar, exist already and could possibly be emulated by different states.
One other trigger for concern is the massive sum of money sitting in CLF, which is inclined to abuse. Roughly Rs 56.69 million was donated to neighborhood establishments as capitalization help. Furthermore, there are different funds given to them together with curiosity earned from the Middle and states. These funds should be accounted for by setting up a sturdy organizational system to watch communities by way of social audits along with statutory audits of the CLF.
Moreover, work will have to be achieved on financial savings and mortgage merchandise by way of CLF. Given the totally different statuses and proposed actions of members, it will not be a good suggestion to use a uniform rate of interest and time period to all loans. Communities must be empowered to answer calls on this. The last word objective is to make use of these funds properly in order that the CLF can guarantee equitable growth and earn sufficient revenue to hold out its numerous actions.
Moreover, giant quantities of credit score from banks are being utilized by SHGs. Nonetheless, it has been noticed that many SHG members usually are not happy with the restricted quantity of loans accessible by way of SHG financial institution linkage programmes. As soon as an organization has stabilized, it’s going to need to entry extra credit score to scale up. To do that, it’s essential to reap the benefits of a personalised credit score program. However the issue right here is that SHG members haven’t any private credit score historical past. Subsequently, efforts have to be stepped up to make sure that CIBIL scores are generated for particular person SHG members. Moreover, there’s a must develop a mannequin for CLFs to play an energetic position in these financial institution loans and their repayments, just like SHGs. This provides banks extra confidence when making private loans.
Want for adjustment
The Indian financial system has diversified considerably over the previous decade. Applications ought to then transfer away from debt financing to different fashions of revolutionary financing, corresponding to fairness, enterprise capital, and blended finance. Partnerships with the Small and Medium Enterprise Improvement Financial institution of India (SIDBI) and different monetary establishments, together with non-banking monetary corporations (NBFCs) and neobanks, must be thought of to make sure funding for particular person entrepreneurs. Certainly, personalized monetary merchandise appropriate for rural ladies entrepreneurs have to be developed due to their totally different wants.
Though DAY NRLM strives to enhance the livelihoods of SHG members by way of numerous sub-schemes, these normally work in silos and their impression is proscribed. Given the rising aspirations of members, these interventions now must work in sync to succeed in all villages and SHG members. Subsequently, a livelihood actions plan must be ready yearly for every state/union territory (UT). Information generated by the Village Prosperity and Resilience Plan (VPRP) can present the premise for this radically complete method. Certainly, to provide an impetus to livelihood/entrepreneurship, CLFs must be developed as enterprise clinics/hubs the place all companies associated to livelihood/enterprise growth will likely be housed.
Furthermore, many departments are implementing numerous schemes associated to livelihood and entrepreneurship of rural beneficiaries. NRLM’s involvement within the implementation of a number of schemes of the Ministry of Livestock and Dairying, the Ministry of Meals Processing Industries, and the Ministry of Agriculture and Farmers Welfare has proven optimistic outcomes. Nonetheless, such conferences are sometimes held on an govt foundation and are liable to confusion. Institutionalization of convergence by way of the creation of a ‘Convergence Cell’ at NITI Aayog won’t solely guarantee environment friendly utilization of assets but in addition keep away from duplication of efforts.
unfold the phrase
The largest impediment to bettering the lives of SHG members is the dearth of promoting of the product. This must be tackled head-on by creating an impartial vertical division on the nationwide mission stage that focuses solely on advertising inside the program. Vertical departments ought to give attention to correct packaging, branding, high quality, design, pricing, logistics, and many others. of assorted merchandise. Some CLFs can change into logistics hubs for sure merchandise. Additional, specialised markets confronted by impartial organizations have to be developed on the state/UT stage for SHG merchandise. This could possibly be helpful for direct interplay with non-public market actors.
As outlined above, there are excessive expectations from community-based organizations. Subsequently, we have to have sufficient specialists from totally different fields to information and help them. Nonetheless, it should be remembered that these organizations are at totally different phases of growth and transfer ahead at their very own tempo. This must be revered.
The above interventions will certainly take ladies’s empowerment on the rural stage to the subsequent stage.
Charanjit Singh is a retd IFS officer.
issued – February 3, 2026 8:30am IST
