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Chapter 6: Voluntary Savings & Household Income
6.1
Introduction
The strength and the uniqueness of the SHG groups is savings. All SHG groups have
started off with a minimum periodic “mandatory savings”. It could be as low as Rs. 10
per week or month to as high as Rs. 300 by-monthly (Case 1, 2 and 3). The idea of this
periodic savings was to inculcate a sense of discipline. It is therefore interesting to
understand why various members resorted to “mandatory savings” and remained within
the group. Obviously benefits accrue. What are these benefits?
In this chapter we examine the following. First, we assess the income of individual SHG
members and also the household income. In that section we also assess income
contributions from government schemes like NREGA. Second, we examine the driving
forces for SHG members to do voluntary savings. We hence examine the research
question “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?” (TOR 2)