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Digitisation of Self-Help Groups in India

August, 2019

Self Help Groups (SHGs) have become essential for empowering women in India. Digitisation of SHG processes can streamline operations, addressing challenges like inefficient monitoring, data fragmentation, and capacity-building gaps. The Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) and its state chapters have made significant progress in this area.

This report provides an assessment and roadmap for State Rural Livelihoods Missions (SRLMs) to digitise SHG processes effectively. It highlights current initiatives, identifies gaps, and suggests ways to address them. While Management Information Systems (MIS) have been digitised to some extent, many SRLMs face challenges such as resource shortages and limited IT capabilities, which hinder progress. Additionally, SHGs often lack clarity on the benefits of digitisation, leading to low community ownership.

Most programmes rely on manual data entry, with few using digital tools at the ground level. SHG members and stakeholders beyond SRLMs and banks have limited access to the data. Improved data quality and use are essential for better financial outcomes for SHGs.

Digital linkages for livelihoods and markets are underdeveloped, with innovations remaining small and context-dependent. Additionally, digital platforms for learning are underutilised due to limited smartphone and internet access in rural areas.

The success of digitisation initiatives depends on partnerships between implementing agencies and Technology Service Providers (TSPs). Flexible models, like those seen in Andhra Pradesh and Jharkhand, offer promising examples for the future.

Addressing these challenges will be crucial for the long-term success and sustainability of SHG digitisation efforts.

Resource Type Report

Partner Organisation LEAD at Krea University

Topics NRLM, Self-Help Groups, digital solutions, haqdarshak, women’s collectives

Authors Sharon Buteau | Jithin Jose | Kriti Chouhan