• Banuprakash. K. A.

At the present the Indian credit cooperatives have a century long history. During this period these institutional financing agencies failed, to a large extent, to meet the necessities of the farmers. Some of the factors responsible for their failure are insufficient supply of credit, poor recovery, demand-supply gaps, interference by politicians, lack of monitoring, mis-utilisation of credit, problems in identification of target group, high transaction costs and lags in time, natural calamities and above all presence and competition from informal credit agencies. A number of committees Rural Banking Inquiry Committee(1949), All India Rural Credit Survey Committee (1954), Committee on Cooperative Credit (1960), All India Rural Debt and Investment Survey (1962), All India Rural Credit Review Committee(1969), Working Group on Rural Banks (1975), Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (1981), Agricultural Credit Review Committee (1989), and Narasimham committee (1991 and 1998) constituted by Government of India looked into their functioning and made numerous recommendations to improve its execution. Till date, these institutions are catering to about 60% of the total credit necessities of the farmers in rural areas of the country. To facilitate refinancing to cooperatives, commercial banks and regional rural banks, NABARD was formed in 1982. These institutions, even though a variety of governmental assistance, abortive to assemble the necessities of farmers. Further, the above structures did not cater to the landless, marginalized and deprived groups. With a view to make available some assistance to these groups of people, a concept called micro financing was promoted. The origins of SHGs could be traced to mutual aid in Indian village community. The Self-help in quintessence is a type of cooperation. Cooperatives are formal bodies, while SHGs are informal (NABARD 1996). Self-help and reliance are strategies of endurance for pitiable as well as their development from below.

Rural credit, co-operatives, financial institutions, re-financing, NABARD.

"An analysis of integrating Micro –Finance Institutions with Self Help Groups in Karnataka – A descriptive study.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.2, Issue 6, page no.846-853, June-2015, Available :http://www.jetir.org/papers/JETIR1701170.pdf

"An analysis of integrating Micro –Finance Institutions with Self Help Groups in Karnataka – A descriptive study.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.2, Issue 6, page no. pp846-853, June-2015, Available at : http://www.jetir.org/papers/JETIR1701170.pdf