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Paper Details

A BACKGROUND STUDY ON THE ROLE OF BANKS IN ERADICATION OF POVERTY AND UNEMPLOYMENT IN INDIA BY IMPLEMENTATION OF GOVERNMENT SPONSORED SCHEMES WITH SPECIAL REFERENCE TO SWARNA JAYANTI GRAM SWAROZGAR YOJANA (SGSY

A BACKGROUND STUDY ON THE ROLE OF BANKS IN ERADICATION OF POVERTY AND UNEMPLOYMENT IN INDIA BY IMPLEMENTATION OF GOVERNMENT SPONSORED SCHEMES WITH SPECIAL REFERENCE TO SWARNA JAYANTI GRAM SWAROZGAR YOJANA (SGSY

Dr. Soofia Fatima 

Journal Title:Cosmos An International Journal of Management
Abstract


Banking system occupies an important place in a nation’s economy. A banking institution is indispensable in a modern society. It plays a pivotal role in the economic development of a country and forms the core of a money market in the country In this study, the role of banks in implementing government sponsored schemes to alleviate the problems of poverty and unemployment are highlighted with special reference to Swarna Jayanti Gram Swarozgar Yojana (SGSY). The SGSY is operative from 1 st April, 1999 in rural areas of the country. It is a holistic scheme which has the quality of covering almost all the aspects of self employment such as organization of the poor into Self Help Groups, training, credit, technology, infrastructure and marketing. The scheme will be funded by the Centre and State in the ratio of 75:25 and will be implemented by the Commercial Banks, Regional Rural Banks and Co-operative Banks. The process of planning, implementation and monitoring is made the responsibility of other Financial Institutions, Panchayati Raj Institutions, District Rural Development Agencies (DRDAs), Non-Government Organisations (NGOs), Technical Institutions in the district,etc,. For the formation and nurturing of self help groups the help of NGOs may be taken. NGOs are of great help if needed at the time of monitoring the progress of the swarozgaris. Their services may be taken in the realm of technological support, quality control of the products and as recovery monitors cum facilitators. This scheme has a mission of establishing a large number of micro enterprises in the rural areas. The target group for the assistance under SGSY are those families which are marked as Below Poverty Line (BPL) households identified through BPL Census duly approved by Gram Sabha. The power- packed objective of this scheme is to bring the assisted poor families above the poverty line by ensuring appreciable sustained income over period of time. The essence of attaining this very objective is to organize the rural poor into Self Help Groups (SHGs) through the process of social mobilization, their training and capacity building and provision of income generating assets. The rural poor which are considered as the target group and covered by this scheme are those with land, landless labour, educated unemployed, rural artisans, and disabled. Swarozgaris are organized into Self Help Groups. The scheme provides for the formation of Self Help Groups (SHGs), nurturing and their linkages with banks. Commercial banks should design their lending policies in such a way, as to ensure sufficient credit to the neglected sectors of the economy and to those who do not have easy access to credit. Hence commercial banks can bring down the inter-regional, inter-sectoral and inter-personal disparities. With this objective the Reserve Bank of India has taken various steps to ensure adequate flow of credit to weaker sections of the society including the minorities. Financial exclusion was very alarming and it is the need of the hour to modify the financial services delivery system to achieve greater inclusion. Despite all odds, banks have been trying their level best to reach at every door-step with the policies of financial inclusion and to provide the benefit of government sponsored programmes to the needy people. If the banking system in a country is effective, efficient and dynamic it results in a rapid growth in the various sectors of the economy. Keywords: Poverty, Unemployment, Government, Programmes.