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children’s education, construction on pucca houses and to finance old-age (Bakhtiari,
2006). The driving force for the SHG members to save has been increasing simplicity,
availability of easy- to-understand financial instruments and reduction in requirements to
save- like the simplified KYC norms and the like. The major attributes which poor
people look for in a savings scheme are: security, convenience, liquidity and positive
returns (Ballem & Kumar, 2010). There are, however, certain challenges in the SHG
movement which make members reluctant to save beyond the basic, agreed, compulsory
savings required. The major concern that the members have is that they can get the
money only in the form of a loan, that too, only if the cash is available. This, combined
with security concerns, makes them reluctant to save additional cash surplus, even if it is
available.
The above literature review leads us to our project objectives/terms of reference which
are discussed in detail in section 3
2.6 Project Objectives/Terms of Reference (TOR)
1.
Does pooling of thrift / savings by its members help develop building trust
and ownership in SHGs? (Chapter 7)
2.
What is the driving force for SHG members to do voluntary savings? Source
of income namely various Government sponsored schemes like NREGA,
livelihood schemes etc. has facilitated voluntary savings? Does it strengthen
the sustainability of groups and help build scale of operation in their business?
(Chapter 6)
