SHG full form is SELF HELF GROUPS. In simple words its group of 10 to 20 local men or women who provide mutual supports for each other.  This concept introduced by NABARD in the year 1992 and it’s become world’s largest micro finance project. Reserve Bank of India and NABARD permitted SHGs to open saving bank account in the banks from the year 1993.

SHG minimum member is 10.

SHG maximum member is 20. 

Self Help Groups promote the small savings among there members and such savings deposited in SHGs saving bank account maintained in the bank. SHGs are basically saving oriented groups. Bank decides borrowing power of SHGs on the basis of there savings.


Documents required for SHGs to open the Savings Bank account in the Bank:


The following documents are required to open Saving Bank Account.

1)      KYC Documents.

2)      Resolution of the SHG for opening SB account with bank.

3)      Passport size colour photo.

4)      Account opening form.


SHGs Saving Account is opened with the bank within two months of the formation of Self Help Group.  PAN card is not mandatory to open SHG Saving Bank Account. Registration of SHG is not mandatory to open SB account with the bank. SHG account is operated by two members of the group. They will sign behalf of the SHG group. All members KYC not required to open SB account.




1)      SHG should have Saving Bank Account with the Bank.

2)      SHG should be active from last 6 months as per SHG books of account.

3)      SHG should be practicing Regular Meetings, Regular Savings, Regular Inter-loaning, Timely repayment and up to date books of accounts.

4)      Qualified as per the Grading norms fixed by NABARD.



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