Poverty alleviation programs are activated in both rural and urban areas of India. But, in this paper, the scheme NRLM which mainly focuses on promoting self-employment and organization of rural poor is explored. Since a large section of Indian population living in rural areas, most of the people belonging to scheduled castes, scheduled tribes and many others lead a life of below poverty line. So, for the betterment of rural poor people time to time many poverty alleviation programs like Integrated Rural Development Programme (IRDP), Training of Rural Youth for Self Employment (TRYSEM), Development of Women and Children in Rural Areas (DWCRA), Supply of Improved Toolkits to Rural Artisans (SITRA), Ganga Kalyan Yojana (GKY) and Million Wells Scheme (MWS) were launched. All these schemes were merged into Swarnajayanti Gram Swarojgar Yojana (SGSY). Further SGSY has been restructured and redesigned with the name of National Rural Livelihood Mission NRLM by the Ministry of Rural Development (MoRD), Government of India in June 2011.  The basic idea behind this mission is to organize the poor into SHG (Self Help Groups) and make them capable for self-employment. As far as Punjab state of India is concerned, it also started NRLM under the name Punjab State Rural Livelihood Mission (PSRLM) in the year 2012-13 covering at that time only 5 districts however, now all districts have been covered. In order to improve the livelihood of poor households on a sustainable basis skilled wage employment opportunities are provided to them under the mission.

National Rural Livelihood Mission (NRLM), which is an important rural development programme has been reformulated from Swarnajayanti Gram Swarozgar Yojana (SGSY) in India. In this paper an effort has been made to review the available literature related to the issues like micro finance, self help groups and National Rural Livelihood Mission (NRLM). Ghosh et.al (2015) explained the role of Panchayats and self help groups in women empowerment and their education in India. They mentioned that the most important step taken by the Govt. is to give constitutional status to village level councils/Panchayati Raj institutions under which 33 percent seats in Panchayats for rural women were reserved. Chatterjee (2016) discussed the implementation or working process of NRLM also called “Aajeevika” in India.  NRLM’s focus is that all the poor in a village are covered and a woman from each poor family is motivated to join the SHG.  Anand (2018) described that the small savings by group members proved to be very helpful in their economic crisis and also helped to manage the development of leadership qualities in women and these efforts improve the standard of living of women and ensure their effective participation in development work. Kumaraswamy (2020) explored the functioning of National Rural Livelihood Mission (NRLM) which was implemented in 2011 and renamed as DAY-NRLM (Deendayal Antyodaya Yojana – National Rural Livelihood Mission) with effect from March 29, 2016. Vijayalakshmi (2021) defined the conceptual framework of microfinance institutions (MFIs) and analyzed the role of microfinance in the social and economic development of the rural areas of India and concluded that Microfinance plays a very decisive role in providing financial services to the needy sections of the society and it is also helpful to contribute towards women empowerment in the society. Sinha and Agrawal (2022) studied a positive impact of National Rural Livelihood Mission to increase women's self-confidence through providing employment opportunities to empower them is noticed by the authors. It has also increased significantly respondents’ leadership power and communication skills.

Punjab State Rural Livelihood Mission (PSRLM)

As per the guidelines of NRLM, every state has to prepare Initial Annual Action Plan and submit the same to Ministry of Rural Development, Govt. of India to start the pilot project. Punjab initiated the process of implementation of NRLM by establishing State Rural Livelihood Mission (SRLM) Society. Under the mission, the state prepared Initial Annual Action Plan for 14 blocks in 5 districts of Punjab. These districts were Tarn Taran (Khadoor Sahib, Valtoha and Chohla Sahib), Gurdaspur (Dhariwal and Dera Baba Nanak), Patiala (Rajpura, Sanaur and Patran), Sangrur (Sunam, Sangrur and Lehragaga) and Ferozepur (Guru Har-Sahai). Then, two another districts Muktsar and Bathinda were included in the mission. The main target of this mission is to reduce poverty by enabling poor households to access gainful self-employment, skilled wage employment opportunities, resulting in appreciable improvements in their livelihoods on sustainable basis through building strong institution of the poor. As far as the geographic profile of the state is concerned, this state occupies 1.5 percent area of the nation. It consists of 20 districts with total population of 2.7 crore persons with 47.18 percent female population, skewed sex ratio of 893 and child sex ratio of 846. The total literacy rate was 76.68 percent with 81.48 percent male and 71.34 females as per Census 2011.

Coverage of PSRLM/NRLM Scheme in Punjab at Block, Villages and Gram Panchayats level

The data regarding the progress in terms of coverage of the total number of Blocks and Villages and Gram Panchayats (GPs) in Punjab under NRLM, up to March 2014 and up to March 2019 is presented in the Table no. 1.

Coverage of Blocks: At the all-India level 4380 blocks have been covered up to 31 March 2019against the total target of 6000 blocks to be covered under the mission. As per Punjab Statistical Abstract 2019, there are 150 blocks in Punjab.

Table No. 1: Number of Blocks, Villages and Gram Panchayats (GPs) covered under PSRLM (NRLM) in Punjab and at the all India level

Source: Various Reports of NRLM, *Cumulative Progress **Share of Punjab out of total India

Punjab state covered only 57 blocks (38.00 percent) out of the total 150 blocks of the total blocks in the state which formed only 1.30 percent out of total blocks covered in India. So, Punjab’s performance in terms of coverage of blocks under PSRLM/NRLM is very weak.

Coverage of Villages: PSRLM/NRLM’s performance in the state in terms of coverage of total villages is studied. As per the Punjab Statistical Abstract 2019, there are 12097 villages in Punjab. The data reveals that up to March 2014 Punjab State covered 833 villages constituting only 0.83 percent share of around one lakh total villages covered under the scheme in India. The cumulative progress reveals that 2170 villages have been covered under NRLM in Punjab up to March 2019 which comprise only 0.67 percent of total villages covered in India. Despite a significant coverage of new villages every year at the national level, the coverage of villages in Punjab is very less under NRLM.

Coverage of Gram Panchayats: The data reveals that Punjab State covered only 825 Gram Panchayats (GPs) constituting only 2.14 percent of the total Gram Panchayats (GPs) covered in India up to March 2014. The cumulative progress up to March 2019 reveals that 2155 Gram Panchayats (GPs) under NRLM up to March 2019 have been covered in Punjab; however, these comprised only 1.65 percent in India’s total coverage of GPs. So, during the period of up to March 2014 and up to March 2019, the coverage of Blocks and Villages/Gram Panchayats (GPs) under NRLM has increased gradually in Punjab. But the overall progress is very slow in Punjab as compared to the national level and the share of Blocks, Villages and Gram Panchayats (GPs) of this state in total coverage of India under NRLM has remained very less.

Social Category wise SHGs mobilized under PSRLM/NRLM in Punjab

Self-Help Group is a well-known and approximately four decades old concept which now a days plays a major role in poverty alleviation in rural areas. It is reported that the SHGs speed up the country’s economic development. Members of SHGs are mainly women. Women constitute around fifty percent of the total human resources in our economy. This has led to boost the process of women’s empowerment. Saravanan (2016) is of the view that these groups are necessary to overcome exploitation, and create confidence for the economic self-reliance of the rural poor, particularly among women, who are mostly invisible in the social structure.

Under NRLM, the main aim is to provide a platform for poor rural people through the mobilization of SHGs and each group consists of 10-20 members, especially of poor women from each poor household. These groups are providing livelihood opportunities for poor rural women through microfinance facilities (NRLM, 2017).

In the Table no. 2, the data on the total number and percentage of SHGs which are promoted under the NRLM scheme in Punjab and its position in India up and March 2014 to up to March 2019 is shown.

SC SHGs: The total number of 2.83 lakh and 10.08 lakh SC SHGs were promoted in India and Punjab mobilized 228 and 6605 SC SHGs which comprised a negligible share i.e. 0.08 percent and 0.65 percent in India up to March 2014 and March 2019 respectively. The share of SC SHGs in Punjab out of total SC SHGs mobilized in India remained very low even less than one percent. ST SHGs: Since there is a negligible ST population in the state thus ST SHGs are not mobilized into Punjab State. Minority SHGs: In Punjab, in terms of mobilization of minority SHGs under PSRLM up to March 2014 and up to March 2019, a huge increase is observed. A total number of 80133 minority SHGs were mobilized in India up to March 2014 and out of these Punjab mobilized only 33 Minority SHGs which comprised 0.04 percent.

Table No. 2: Social category-wise number of SHGs mobilized under PSRLM/NRLM in Punjab and at the all India level

Source: Various Reports of NRLM, *Cumulative Progress **Share of Punjab out of total India

The cumulative performance with respect to the mobilization of minority SHGs is such that at the all-India level 4.23 lakh such SHGs have been mobilized out of these Punjab could mobilize only 564 which formed only 0.13 percent. PWD SHGs: Upto March 2014, no PWD SHGs had been mobilized in Punjab. The cumulative progress reveals that up to March 2019, at the all-India level, 56957 PWD SHGs and out of these only 90 from Punjab which comprised 0.16 percent were mobilized. Punjab has been progressing very slowly in the formation of PWD SHGs. Other SHGs: The performance of NRLM with respect to coverage of ‘other SHGs’ is also explored. The data shows an increase in the number of ‘other SHGs’ which are mobilized under PSRLM in Punjab. A total number of 10.8 lakh and 26.36 lakh 'other SHGs’ were mobilized in India and out of these Punjab mobilized only 50 and 2278 SHGs which comprised 0.005 percent and 0.08 percent up to March 2014 and March 2019 respectively. Despite a higher growth, the number of ‘other SHGs’ in Punjab comprised a miniscule of the total ‘other SHGs’ mobilized in India.

Total SHGs: The number of SHGs mobilized in Punjab under the PSRLM/NRLM Scheme increased from 311 up to March 2014 to 9537 up to March 2019 out of 15.99 lakh and 48.11 lakh at the national level respectively. But, the progress in this respect too can be depicted as gradual in Punjab as its share in India is very less as Punjab comprised only 0.01 percent and 0.01 percent of total SHGs mobilized India under NRLM.

Social category-wise households mobilized into SHGs under PSRLM/NRLM in Punjab

NRLM set out with an agenda to reach out, mobilize and support 7.0 crore BPL households into their self-managed SHGs and their federal institutions for their livelihood collectives. NRLM aims to provide them with long-term dedicated sensitive support and extend facilitation support in all their efforts to get out of poverty. In addition, the poor would be facilitated to achieve increased access to their rights, entitlements and public services, diversified risk and better social indicators of empowerment. Activities of NRLM are support structured. Organizations at various levels like state, district, block and village levels reach out to all the rural poor households and make efforts to remove poverty by building capacity, financial power and access, and self-managed and self-reliance through placement in jobs, and/or nurturing them into remunerative self-employment and enterprises. Under the NRLM at least one member from each identified rural poor household, with first preference to women is brought under the Self Help Group (SHG) network in a time-bound manner.

The SHG-Bank Linkage Programme is the key strategy for delivering financial services to the poor in a sustainable manner. As at the end of March 2017, as many as 46.5 lakh SHGs were credit-linked with banks, benefiting more than 5.10 crore poor households.

In the preceding paragraph, the scenario about social category-wise number and share of mobilization of SHGs covered was discussed. Now, the performance of social category-wise number of households mobilized into SHGs in Punjab is explored.

In the table no. 3, the data regarding social category-wise number and percentage of such households mobilized into SHGs under the PSRLM/NRLM scheme in Punjab and at the all-India level up to March 2014 and upto March 2019 is presented.

SC households: A total number of 38.75 lakh SC households were promoted into SHGs in India under the mission. Punjab mobilized 2470 SC households which comprised only 0.06 percent of India up to March 2014. However, a huge increase in SC households mobilized into SHGs under NRLM is observed up to March 2019 as 69671 SC households in Punjab and 123.6 lakh SC households were mobilized in India.

Table No. 3: Social category-wise number of households mobilized into SHGs under PSRLM/NRLM in Punjab and at the all-India level

Source: Various Reports of NRLM, * Cumulative Progress **Share of Punjab out of total India

ST households: Since the ST population is minuscule in Punjab, thus no ST households could be mobilized into such SHGs in the Punjab State. However, 77.6 lakh ST households have been mobilized into SHGs at the national level.

Minority households: In Punjab, Minority households are also mobilized under PSRLM. A total number of 17.4 lakh Minority Households were mobilized into SHGs in India and Punjab mobilized 156 such households comprising 0.008 percent of the national figure up to March 2014. Upto March 2019, while 6715 Minority households are mobilized into SHGs under PSRLM and these comprised only 0.1 percent of such households (57.69 lakh) at the national level. No doubt the number is growing but the coverage as well speed of mobilization of Minority households is much less in Punjab than that at the national level.

PWD households: In Punjab, the coverage of PWD households shows an increase in terms of mobilization into SHGs under PSRLM. The total number of 1.26 lakh PWD households was mobilized in India and Punjab could mobilize 131 PWD households which comprised 0.10 percent up to March 2014 and cumulative picture is such that up to March 2019, only 771 PWD households were mobilized into SHGs out of 5.7 lakh as a whole in India. This figure comprised only 0.14 percent of India. Since the share of PWD households mobilized in Punjab is very less so, it can be said that Punjab is gradual in mobilizing PWDs into SHGs under the mission.

‘Other households’: The total number of 1.13 crore ‘other households’ were mobilized into SHGs in India and out of these Punjab mobilized 1140 and 14263 which comprised 0.01 percent and 0.09 percent up to March 2014 and up to March 2019 respectively. No doubt, its growth is better but the share of ‘other households’ mobilized into SHGs under the mission is much less. 

Total households: The total number of households mobilized up to March 2014 into SHGs under NRLM was 1.88 crore in India and out of these Punjab State comprising the share of 0.02 percent mobilized 3897 households. The number grew to 5.47 crore at the all India level and to 91420 in Punjab making it 0.16 percent. So, it is concluded that the number of households covered under the scheme has been continuously increasing. Punjab State has successfully been mobilizing new households in SHGs under the scheme every year, but its progress as compared to that at the national level is very slow as the state’s share in India has remained very less or we can say is negligible.

Financial Inclusion under PSRLM/NRLM in Punjab

Any central scheme can only run efficiently in a federal nation if adequate resources are provided to the states. Since, financial inclusion is the main objective of the NRLM scheme, thus, in this section the progress regarding its various aspects viz. Saving Mobilization and disbursement of Revolving Fund (RF) into SHGs at the Punjab level is analyzed.

Saving Mobilization into SHGs in Punjab: Under NRLM, the creationof the habit of saving amongst self-help group members is also one of the important agenda. As per the norms, each member of the SHGs should save some minimum amount of money like Rs.50, Rs.100, Rs.150 or Rs.200 per month. SHGs are providing facilities for women to grow up with their savings and access credit facility and have linked banks which are increasingly willing to loan or lend (nulm_Mission, 2014). So, the benefits of saving mobilization facilities help the group members to access credit and also to promote women empowerment through enterprises and production units (Khoisnam, 2015).

Table No. 4: Amount and share of saving mobilization into SHGs under PSRLM/NRLM in Punjab and India (Rs. in Lakh)

Source:Various Reports of NRLM, *Cumulative Progress **Share of Punjab out of total India

In the table no. 4, the data regarding the total amount of saving mobilization into SHGs in Punjab and at the all-India level up to March 2014 and upto March 2019 is shown. It is found in Punjab state the amount of savings mobilized into SHGs was Rs. 34.54 lakh up to March 2014 and it comprised a meager share i.e. 0.005 percent of the total savings mobilized into SHGs in India under the NRLM scheme. The cumulative amount of savings mobilized in SHGs turned out to be Rs. 2298 lakh in Punjab making it 0.12 percent of the total amount of savings mobilized into SHGs at the all-India level.

Throughout the period, the share of Punjab’s amount of savings generated under the scheme remained less than one percent of India. So, it is quite clear that the beneficiaries of SHGs under PSRLM/NRLM are gradually mobilizing savings; however in absolute terms, it has been continuously improving in Punjab. 

Revolving Fund (RF): Revolving Fund (RF) is disbursed to those SHGs which show better performance amongst all SHGs. Under the NRLM scheme, the Revolving Fund (RF) supports SHGs within minimum period of 3 to 6 months which follow the norms set to become good SHGs. The amount of Revolving Fund (RF) to be provided is Rs. 10,000 to Rs. 15,000 which works as a corpus fund to meet the credit needs of group members and this fund is disbursed to those SHGs which show better performance or continue activities from the last six months and also follow Pancha Sutra like, holding regularly meetings, regularly savings, regularly inter-loaning, regularly repaying the borrowed amount and interest, and regularly updating books of account and have passed in practice with Grade I of Pancha Sutra. So, the purpose of Revolving Fund (RF) is to strengthen the institutional and financial management capacity of SHGs and build a good credit history within the group (RBI, 2019).

Table No. 5: Social category-wise number and share of SHGs getting revolving Fund and its Amount in Punjab and at the all-India level.

Source: Various Reports of NRLM, *Cumulative Progress **Share of Punjab out of total India

Social category-wise performance in terms of number of total SHGs which received Revolving Fund and the disbursement of total amount of RF into SHGs up to March 2014 and upto March 2019 under PSRLM/NRLM is explored. It is found that it varies to a large extent.

The table no. 5 shows the data on the number of those SC SHGs which got RF and the total amount of Revolving Fund disbursed to them. The cumulative progress of SC SHGs getting the Revolving Fund is such that a total number of 3111 SC SHGs (0.91 percent) received Rs.367.21 lakh (0.77 percent) amount of RF under NRLM in Punjab out of the total disbursement of Revolving Fund of Rs.47524.55 lakh to Rs.3.42 lakh SC SHGs in India up to March 2019.Over the period of time, the number of SC SHGs getting RF and its amount in Punjab has improved, but the share in terms of number as well as in RF amount of total India has declined. It can thus be stated that the SC SHGs in Punjab state are less active to get the RF as compared to those at the national level. The total number of 1187 Minority SHGs received a Revolving Fund of Rs.171.37 lakh in India and Punjab State disbursed only Rs. 2.43 lakh Revolving Fund to 18 SHGs up to March 2014. The data also shows the cumulative progress of Minority SHGs getting RF in Punjab as well as India. A total number of 397 Minority SHGs received Rs. 47.53 lakh amount of RF under NRLM in Punjab out of the total disbursement of Revolving Fund of Rs.18737.61 lakh into 135201 Minority SHGs in India up to March 2019. Minority SHGs of Punjab getting RF comprised a very less share i.e. 0.6 percent of India and similar is the position with respect to their share in RF amount.

The number of minority SHGs getting RF and the amount they get as RF has been increasing in Punjab as well as at the national level, but this state’s share is minuscule.The data also shows the cumulative progress of PWD SHGs getting RF and it is found that only 20 SHGs received Rs. 2.15 lakh amount of RF under NRLM in Punjab up to March 2019. The position of Punjab in this respect is also highly weak.The total number of 5369 ‘other SHGs’ received Rs.773.56 lakh Revolving Fund in India and Punjab received Rs. 4.2 lakh Revolving Fund (0.55 percent) for 32  groups which comprised only 0.60 percent of India up to March 2014.The share of ‘other SHGs’ getting RF in Punjab out of total India varies which reveals that this state occupies a much weaker position in this respect too. Similarly, the share of Punjab in total RF disbursed to ‘other SHGs’ in India is minuscule.

Disbursement of Revolving Fund to Total SHGs: The data in the table shows that up to March 2014, the total number of 11935 SHGs received Revolving Funds worth Rs.1590.7 lakh and the number rose to 14.57 lakh and the amount rose to 175 crore up to March 2019 in India. The RF worth Rs.5.6 lakh (0.33 percent of India) was disbursed to 4790 SHGs of Punjab covered in this mission up to March 2019.

In Punjab, the number of those SHGs which received RF as well as the amount of RF has grown during the last five years, but their share in India is not only marginal but has declined. So, the SHGs in Punjab are not so active to attain RF.

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