Do Savings Vary Across Regions? The Case of Shgs Linked With Public Sector Commercial Banks In India

Abstract

One of the powerful approaches to rural empowerment and rural entrepreneurship is the formation of SHGs. For mutual benefits, the SHGs and formal banking structure can work together. Thus, opening of saving bank account is the first step in this direction. In this context, the study attempts to examine whether there is any significant variation in regionwise savings performance of the SHGs linked with public sector commercial banks in India during the year 2021-2022. For this purpose, secondary data is used and the technique of one-way ANOVA has been applied in the study.

It may be concluded that average savings of the SHGs have not varied significantly among the regions in India. However, Uttarakhand, Andaman & Nicobar, Sikkim, Tripura, New Delhi, and Daman & Diu UT have shown better relative efficiency in savings performance as compared to other States / UT in India. Hence, this study suggests for establishment of more SHGs in those areas where relative efficiency of savings performance are better. This will help to achieve better financial inclusion in the economy.