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credit link and graduate SHGs and their members is hence recommended
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. In this context, two
recent initiatives of NABARD need a mention. One, the digitisation of SHGs and the other is
Livelihood and Enterprise Development Programme (LEDP). Under LEDP, refresher training,
backward-forward linkages and handholding and escort supports are ensured. It is a project based
approach encompassing the complete value chain and offering end to end solutions to the SHG
members.
Fourth, regional spread of microfinance institutions is a serious issue to be sorted out. While the
southern states of India account for major share in credit from formal financial institutions, the
spread of microfinancing institutions also ironically tilted towards those very states
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.
Fifth, microfinance sector has spread with a mix of traditional and modern institutions working
towards lofty ideals but each stakeholder running on their own tracks. Now, with the advent of
the new generation banks such as Small Finance Banks (SFBs), Payment Banks (PBs) and many
MFI-NBFCs converting themselves into one of them, with initiatives of the government on skilling,
financial inclusion, insurance, climate change, isolated efforts only lead to high cost of delivery,
overlapping and wastage of resources, peripheral coverage and concentration of benefits in a few
geographies and population segments. We need an anchor agency at the national level to construct
a big picture and share it with all stakeholders for distributed and differentiated efforts.
Lastly, SDGs and targets are drawn for country level achievement. They have to be localised
to formulate comprehensible and implementable goals at the grassroots level. The SDGs appear
formidable at macro level and micro level microfinance institutions like SHGs appear too small to
contribute. But, if we can build strong network of ground level institutions of people, it can form
a soft infrastructure that would support effective implementation of successive developmental
interventions. Investing in people’s institutions is a must for inclusive growth.
