The Hindu Business Line : `Micro-financing will boost rural savings'

THE increase in micro-financing capability through self-help groups (SHGs) will enhance the prospects of the rural poor, according to Prof D. Nagabrahmam, Director of T.A. Pai Management Institute, Manipal.

According to Mangalore University release issued here on Thursday, Prof Nagabrahmam delivered the C.E. Kamath Memorial Endowment Lecture on "Microfinancing: A management tool for rural development" organised by the Department of Economics at the university recently.

He said that SHGs, sponsored by the National Bank for Agricultural and Rural Development (Nabard) and managed mostly by women, have contributed to the savings culture of the rural poor. SHGs have become an essential ingredient in rural development.

Prof Nagabrahmam highlighted the role of Gramin experiment in Bangladesh and Self-Employed Women's Association in Ahmedabad in spearheading micro-financing concept in rural development.

Referring to the success story of dairying in India, he said that it had become an effective organisation of decentralised production system. In this, a centralised marketing system enables delivery of any dairy product anywhere in the country.

The Vice-Chancellor, Prof B. Hanumaiah, presided over the function.

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