
Introduction:
Technology up-gradation has given tremendous economic progress in Naga Society today. However, along with this positive progress, it also has impact on ‘value system’, ‘attitude’,’ desire’ and ‘want’ in our Naga society. Sometimes, circumstances chain us to be inconsistent and compromise in all our ways and thinking. Circumstances compel us to do not of our own free-will.
Thus, the Concept of Self-Help Group is a formation and unity of like-minded persons (15-20 persons). The common objective of Self-Help Group is to save regularly (earning) to promote Resource Mobilization for future uncertainties (circumstances) also known as Future Investment.
The Hon’ble Chief Minister of Nagaland Shri.Neiphiu Rio has directed NHHDC to work out modalities for promotion of bankable SHG for which Concept Paper on Self-Help Group has been worked out.
Salient features for
formation of self-help group
The following are the salient features for formation of SHG –
1. Formation and unity for several like-minded persons to form SHG.
2. The group must have objective to save -
As Self-Help Group is normally for the weaker section of the society. As such the agreed amount to save should be small and should not affect the family budget. Smaller amount which all the members can save is desirable. Though the amount maybe small, saving has to be regular and continuous habit with all the members.
3. Self help is the best help
The concept of Self-Help Group is to help themselves from the saving and not dependent on outside help. Thus, internal lending as loan for members from the saved amount should be encouraged to learn technique of banking system.
4. Saving Account -
All Self-Help Group must invariably have Bank Account in any of the Financial Institution which all the members agree. This will enable them to get banking loan when the SHG becomes matured and trusted by the Bank.
a) Resolution from the SHG – The SHG has to pass a resolution in the meeting signed by all the members, indicating their decision to open Saving Bank Accounts with the Bank. This resolution should be filed with the Bank.
b) Authorization from the SHG – The SHG should authorize at least two members to jointly operate their account. The resolution along with the filled in application form duly introduced by the promoters maybe filled with the bank Branch.
5. Minutes of the Meeting -
The SHG should make Minute Book of the meeting for each meeting. The credibility of SHG will determine how often meetings are held and minutes are maintained. The proceeding of the meetings, the rule of the groups, name of the members etc are recorded in this Book.
6. Low Investment, Quick Returns -
Initially activities of SHG should be low investment and quick returns.
7. Turn-over -
SHG should regularly deposit the savings. From the savings, they should withdraw some
for their activities to generate income after implementing the activities they should deposit back their income whether it is loss or profit back to the Bank. Several transactions of drawing and depositing will create Confidence Building Measures with the Bank. This is the most important aspect, trust by the Bank. Trust reliability is what the Bank wants. Nothing more, nothing less. Several transaction of withdrawal from your saving and re-depositing your income to the Bank is known as turn-over. When Bank to wants give loan, it will calculate on the SHG turn-over. In other words, transactions.
8. Book-Keeping (Loan Register) -
To maintain all transaction of SHG in Book of Accounts
9. Size -
The ideal size of SHG is 15-20 members.
10. Members -
From one family, only one member.
11. Who can form SHG?
SHG group should consist only men or women. Mixed group are not preferred.
However, it is generally found that women groups perform better.
To generate and mobilize resources, activity-oriented programs/project should be the focus. It should not be income through ‘Interest’ but through saving and action-oriented programme to generate income. Creation of job/security will inculcate confidence-building measures, aptitude for clearer decision-making process where some fear of future uncertainty is minimized. The Self-Help Group will inculcate a definite positive and matured attitude in life and thus become a vibrant Self-Help Group. This Self-Help Group in the gradual process will definitely have a far-reaching positive impact on the Society and the Nation. Thus, in the Year of Entrepreneur, NHHDC proposes to set-up atleast 5 (five) progressive Self-Help Groups in each Districts i.e. (5 x 11 = 55) consisting of approximately 20 members i.e. (20 x 55 = 1100 members). Thus, it maybe a small beginning, but it is needless to mention that promotion of 1100 healthy household members with a positive attitude in life would no doubt contribute to a ‘healthy Society’ which is so desirable in the present context of technology advancement in the world scenario.
It is imperative to note that SHG is not necessarily to accumulate huge capital formation but to generate steady income through savings and activities to create confidence and to minimize future uncertainties.
Selection of self-help group
1. Screening process –
After Advertisement in the leading Newspapers, there shall be a Screening of all SHGs either new or old in each Districts with the following members –
i) The Managing Director, NHHDC or his representative
ii) The General Manager, DIC
iii) Lead Bank Officer
iv) Administrative Officer designated by the Deputy Commissioner
v) 2 members from NGO i.e. from the Church/Public Leader.
The Screening Committee will Recommend and submit its Report to Nagaland Handloom & Handicrafts Development Corporation Head Office. Thereafter, there will be a Seminar-cum-Training Programme for SHGs where special emphasis will be given to –
i) Re-organize the SHG as per the norms of NABARD Guideline.
ii) Choose the correct project for its line of activity. If the selected project is wrong, SHG will never succeed. Furthermore, members will initially take up only one project which should never be shifted. If any change is required, it should be finalized during the Training Programme.
After Seminar-cum-Training Programme is over, the SHGs group will be referred to their respective District Level Selection Committee.
District level selection committee for shg
The following members shall constitute the District level Selection Committee
i) The Deputy Commissioner - Chairman
ii) The General Manager, DIC - Member
iii) NGO Church - Member
iv) NGO Public Leader - Member
v) The Managing Director, NHHDC or his representative - Member Secretary
The Recommendation by the District Level Selection Committee will be forwarded to the NHHDC H.O. for further necessary action. It should be noted that SHG which is not bankable with Financial Institution will not be considered initially till all formalities with the Bank is completed.
Hokiye Yeputhomi
Managing Director
Nagaland Handloom & Handicrafts
Development Corporation Ltd.