VIDYASAGAR UNIVERSITY JOURNAL OF COMMERCE

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Samirendra Nath Dhar, Kiranjit Sett, Soumitra Sarkar which made its advent only eight years ago in relation to SGSY. However, if these problems can be addressed well in time and with proper consideration, the rough edges can be smoothened out gradually. The next section strives to put some suggestions in this context. Suggestions and Conclusion SHG- banking has resulted in the success of microfinance programmes through out India. The same story replicates itself in Jalpaiguri district and Siliguri subdivision. This is evident from the growth in number of SHGs linked to banks in these areas. Such a boom would not have been possible without the positive attitude and cooperation of the bankers. The bankers do have a positive outlook of banking for SHGs and this has been aptly corroborated by the findings of this study. Their positive outlook is bound to be a sine quo non for sustainability of this type of banking operations. However, roses do not bloom without thorns and problems can put spokes in the wheels of SHG-banking. Some of the suggestions given below may be able to address the problems encountered by the staff. • Sensitisation and awareness programmes should be organised frequently for personnel handling SHG- banking operations so that they can conceive the objectives and rationale behind microfinance programmes and also grasp the nuances of the operations related to linkage of SHGs. • Qualified microfinance practitioners can be employed by banks. In addition to making microfinance operations by banks smoother, the pressure on existing staff can be reduced and these qualified professionals can help the other staff to master the techniques of SHG- banking. • Complaints of additional workload can be catered to by employing additional staff on contract basis and upgrading manual documentation and accounting systems to computerised systems. • Where this is not possible it may be worthwhile to have a special banking day for SHG Banking. However, if for any reason the staff that were given the responsibility for SHG-banking activities, could not attend the special banking day and members of SHGs would have to wait for a week. This could adversely affect the group’s economic activities and in the interval they may have to take recourse to moneylenders. This could lead to loosing confidence on the banking system. Depending on the number of SHGs linked to the bank and the number of staff available the management could arrange for special SHG-banking hours twice or thrice a week. • Where SHG linkage operations are hampered due to the perception of heavy workload, management can conduct counselling sessions to the staff to convey to them that SHG banking under SGSY leads to a ‘win- win’ situation. On the one hand the SHGs benefit from higher level of group corpus and on the other hand the banks can benefit from excellent recovery and lower number of accounts due to opening of group accounts instead of small individual accounts. • Where difficulties in interpretation of guidelines and circulars are common, there such information may be provided in audio- visual mode for better comprehension. Vidyasagar University Journal of Commerce 63
SHG- BANKING IN INDIA-EMPIRICAL EVIDENCES <strong>OF</strong> BANKERS’ PERCEPTION AND PROBLEMS. This suggestion was received from some bankers during the course of the survey. Moreover programmes can be organised by DRDC with the representatives of different banks and Government officials to bring uniformity and simplicity in the documents required for banking activities. • Recognition for devotedness to SHG- banking can be given to employees in the form of awards, citations and highlighting performances in annual reports. This can act as a definite motivator for the bankers. • Problems of dearth of cooperation from the local bodies can be resolved by forming joint action committees at the local levels consisting of the bankers and the panchyat members. This will increase the frequency of their interactions, lead to better communication and assure timely cooperation. Microfinance and SHG-banking activities are multidimensional; therefore, strategies and policies often need to be framed not only on the basis of Government guidelines, but also on the basis of the local area characteristics, demographics and needs. The suggestions given above are broad based and need to be fine tuned according the requirements of each branch, number of SHGs linked to the branch and the staff working in the branch. A batch of motivated staff can be the pillars on which SHG- banking can sustain and facilitate microfinance systems to penetrate deep into the most poverty stricken segments of society. References 1. Brugger, E.A. and Rajapatriana, S. (eds.) (1995): “ New perspectives on Financing Small Business In developing Countries”, ICS Press. 2. Dasgupta, R. (2001): “Rural banking and credit - tale of many committees”. EPW, March. 3. Fernandez, A.P. (1998): The MYRADA Experience: Alternative Management System for Savings and Credit of the Rural Poor, Mysore Resettlement and Development Agency, Bangalore. 4. Harper, M. (1998): “Profit for the Poor - Cases in Micro-Finance”. Oxford and IBH Publishing Co. Ltd., New Delhi. 5. Jayaraman, B (2001): “Micro Finance: Retrospect and Prospects”, Occasional Paper-20, National Bank for Agriculture and Rural Development, Mumbai. 6. Karmakar, K. G. (1999): “ Rural Credit and SHG- Microfinance Needs and concepts in India”, Sage Publications India Pvt. Ltd., New Delhi. 7. Kropp, E.W. and Suran,B.S, (2002): Linking Banks and Self Help Groups in India-An Assessment- Paper presented at the Seminar on SHG-bank Linkage Programme at New Delhi, 25 and 26 November, 2002 8. Kulshrestha, Laxmi (2000): “Micro-finance: the new development paradigm for poor rural women”. Kurukshetra, November, 2000, pp. 22-25. 9. Landy and Becker (1987): “Motivation Theory Reconsidered”, in L. Cummins and B.Staw (eds), Research in Organisational Behaviour, vol 9 (Greenwich, CT: JAI Press) p-12. 64 Vidyasagar University Journal of Commerce
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National Seminar on ‘Current Tren
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CORPORATE GOVERNANCE AND TRANSPAREN
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Page 103 and 104: Vijay Kumar Mishra Table-5: Growth
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