The Central Government will set up a ”special bank” to finance women’s self-help groups through abundant credit supplies, reports Times of India. The government move is inspired by the fact that NPAs with SHGs stand at a low 2.4%.
An expert committee will discuss the idea and suggest some organizational framework along the lines of Andhra Pradesh’s ‘Streenidhi cooperative’.
The expert panel is likely to be headed by G C Chaturvedi, former secretary to the government of India.
At present, over 26 lakh SHGs are connected to banks, helped by an outstanding credit of nearly Rs 70,000 crore.