Be SHG Member:
Key aspects of RBI's guidelines for SHG account opening:
Eligibility:
SHGs, whether registered or unregistered, that promote savings habits among their members are eligible.
Savings Account:
Banks should open savings accounts for SHGs, including those with members with disabilities and federations of SHGs.
KYC:
Simplified KYC norms are in place. KYC verification of only the office bearers is required for opening the savings account.
PAN:
Banks should not insist on PAN for SHGs during account opening or transactions.
Panchasutras:
SHGs should be practicing "Panchasutras" which include regular meetings, savings, inter-loaning, timely repayment, and up-to-date books of accounts.
Grading:
SHGs may be required to qualify as per grading norms fixed by NABARD, and federations of SHGs can support banks in this process.
Account Opening Form:
Banks should provide simple account opening forms.
Account Opening Form:
Banks should provide simple account opening forms.
Loan Application Forms:
Loan application forms and procedures should be simplified.
Delegation of Powers:
Banks should delegate adequate sanctioning powers to branch managers.
Credit Planning:
SHG lending should be part of the bank's credit planning process at various levels (branch, block, district, and state).
No Targets:
While no specific targets are set for SHG bank linkage, the sector should be prioritized in credit planning.
Federations:
Banks should also open savings accounts for federations of SHGs at various levels (village, Gram Panchayat, cluster, or higher)