Question

How many members are required to form a Self-help group under the structure of SERP?
1. 5 to 10
2. 10 to 20
3. 15 to 20
4. 20 to 25

Answer 1

Correct Answer - Option 2 : 10 to 20

The correct answer is 10 to 20.

• 10 to 20 members are required to form a Self-help group under the structure of Society for Elimination of Rural Poverty (SERP).
• The facilitator of the group can explain the characteristics of SHG (given below) during initial meetings.
  • The ideal size of an SHG is 10 to 20 members.
    • (In a bigger group, members cannot actively participate.)
  • The group need not be registered.
  • From one family, only one member.
    • (More families can join SHGs this way.)
  • The group consists of either only men or of only women as Women‘s groups are generally found to perform better.
    • (Mixed groups are generally not preferred.)
  • Members have the same social and financial background.
    • (Members interact more freely this way.)
  • ​The group should meet regularly.
    • (Members understand each other better if they meet weekly.)
  • Compulsory attendance.
    • (Full attendance for larger participation.)
  • Later SHG should follow the Panchasutras ( Meetings, attendance, regular savings, internal lending, repayment)

• What is SHG?
  • SHG shall be an informal, self-managed homogenous, and voluntary group of 15-20 women of a neighbourhood engaged in credit and saving activities that operate on the principle of mutuality and solidarity.
  • The origin of SHGs in India can be traced back to the establishment of the Self-Employed Women’s Association (SEWA) in 1972.
  • Even before, there were small efforts at self-organizing. For example, in 1954, the Textile Labour Association (TLA) of Ahmedabad formed its women’s wing in order to train the women belonging to families of mill workers in skills such as sewing, knitting, etc.
  • Ela Bhatt, who formed SEWA, organized poor and self-employed women workers such as weavers, potters, hawkers, and others in the unorganised sector, with the objective of enhancing their incomes.
  • NABARD, in 1992, formed the SHG Bank Linkage Project, which is today the world’s largest microfinance project.