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SECTION 2
Chapter 3: Research Framework
Figure 3.1: SHG Membership leads to increased savings
Figure 3.1 is the basic research framework. More than 30% of the people in India do not
have access to bank accounts. The problem is worse in villages. NABARD through its
SHG movement has mandated savings. This has lead to obligatory saving or what we
call as “compulsory saving”. In economics parlance this is called as “low frequency
savings”. Has members found this beneficial and increased this small amount to meet
large lumpy yearly requirements like for education, festivals etc? Additionally we also
investigate whether members save large amounts due to their seasonal incomes which is
SHG Membership
Mandatory Savings
“Low frequency Savings”
Increased savings in other institutions
“Low frequency savings” and
“High frequency savings”
Informal and Multiple Borrowings
Leads to
Induces
Reduces
