56
Chapter 10: Beyond SHG savings accounts
10.1 Introduction
Group members have varying incomes and hence their potential to save is different. The
SHG mandates a certain amount of savings which is arrived at by a democratic process.
Often the NGO (Non-government organization) who they are attached too guides them.
On probing we found that they do not prefer to have unequal voluntary contributions.
Hence member capable of saving more resorted to other means. There were members
who faced several constraints while trying to go beyond the SHG savings. In this chapter
we examine the research question “What constraints this forward momentum, do some
member's open individual accounts independent of the SHG savings accounts?” (TOR 5)
It is also important to understand if SHG members save beyond the mandated savings.
To understand whether they save and where they save, it is worthwhile to understand the
pattern of expenditure in these households. By analyzing their expenditure one can
understand the relationship between their expenditure in various heads and their potential
to save. In this chapter we also examine the research question “What are the other
avenues, which SHG members resort to for parking their savings / surpluses? (TOR 5)
10.2 Constraints felt by SHG members in opening accounts outside the SHG
It is rather important to understand what curtails members from parking their funds in
financial institutions. FGDs conducted across the two states gave us the necessary
insight. The results of the FGDs yielded the following table which is elaborated below.
