Copyright © 2017 Published by kaav publications. All rights reserved www.kaavpublications.org 828 KAAV INTERNATIONAL JOURNAL OF ECONOMICS, COMMERCE & BUSINESS MANAGEMENT A REFEREED BLIND PEER REVIEW QUARTERLY JOURNAL KIJECBM/ JAN-MAR (2018)/VOL-5/ISS-1/A139 PAGE NO.828-834 ISSN: 2348-4969 IMPACT FACTOR (2017) – 7.8902 UGC APPROVED JOURNAL NO. 47663 WWW. KAAVPUBLICATIONS. ORG A STUDY OF SHGS LINKAGE PROGRAMME IN INDIA WITH REFERENCE TO MICRO FINANCE 1 RAMESH KUMAR 1 Assistant Prof., Department of Commerce PGDAV College Evening, University Of Delhi-65, India ABSTRACT:- The present study is aimed at conducting a critical analysis of savings of SHGs of regional rural, cooperative and commercial bank loans sanctioned by commercial banks, cooperative and regional rural banks, outstanding loans to SHGs of regional rural, cooperative and commercial banks, loans granted to MFIs by the above stated institutions and NPAs of banks loans to SHGs of regional rural, cooperative and commercial banks, under SHG-Bank Linkage Programmed in India from the years between 2006-07 and 2011-12. The nature of this research is analytical being based on secondary data of savings of SHGs of commercial, cooperative and regional rural banks under SHG-Bank Linkage Programmed in India, obtained through NABARD’s yearly report of 2006-07 and 2011-12. The diverse statistical tools used in the study are trend analysis and percentage; while F-statistics was employed for analysis of data. INTRODUCTION: Over one third of the world‟s poorest population lives in India; officially in a range of twenty-six to fifty percent, which is more than a billion persons. Over eighty-seven percent of the poorest persons do not have the facility of credit. The requirement for microcredit is approximated to be around $30 billion; but the actual supply is not even $2.2 billion aggregated by each one within the sector. Owing to the enormous volume of poverty, our country is tactically important in global efforts to assuage poverty and attain the Millennium Development Goal of reducing global poverty in a few years. Microfinance has formed part of India‟s efforts since the „70s and is extensively accepted as an effectual strategy for assuaging poverty. The last decade has seen the microfinance industry attaining enormous growth partly because of the input on part of commercial banks. In spite of such growth, the status of poverty within the country remains alarming. In a G8 Summit of 2004, the Consultative Group to Assist the Poor (CGAP) summarized the principles for development practice of one and a half century, seconded by the eight leaders:  Not only are loans required by poor people, but also insurance, savings and money transfer services are needed.  Microfinance should assist the poor through building assets, increasing their income, and protecting impact of outer shocks.  “Microfinance can pay for itself.”There is great uncertainty from government or donations from people and not enough to fulfill the requirement of so many poor persons, hence microfinance has to be self-sustaining.  Microfinance implies creation of long-term local institutions.  Also microfinancing must integrate the economic demands of poor people into the mainstream of the national economic system.  “The job of government is to enable financial services, not to provide them.”  “Donor funds should complement private capital, not compete with it.”