Self-Help Groups (SHGs) focus on empowerment of women i.e., to be independent and equal, both economically and socially. They also bring about a change in the mindset of women and encourage them to plan for their future. This case study makes an attempt to analyze whether SHGs help poor women to empower themselves.

The people, especially women, in rural India who were living in stark poverty have been able to change their lives, enhance their levels of income and could empower themselves with the help of Self-Help Groups (SHGs). "Empowerment is a process by which women take control of their life through expansion of their choices. Thus, it is the process of acquiring the ability to make strategic life choices in a context where this ability has previously been denied. Empowerment can take place at a hierarchy of different levels—individual, household, community and societal—and is facilitated by providing encouraging factors (e.g., exposure to new activities, which can build capacities) and removing inhibiting factors (e.g., lack of resources and skills)."

Though, it is debatable if Self-Help Microcredit institutions are tools indeed to empower poor women. The present case makes an attempt to analyze whether SHGs help poor women to empower themselves. In the process, we briefly look at ICICI, SEWA Bank and HLL initiated project Shakti. Microfinance sector began during 1970s and has been growing rapidly since then. It is associated with poverty alleviation. Microcredit is defined by the Reserve Bank of India (RBI) as a provision of banking, credit and other financial services of small amounts to the rural poor, semi-urban and urbanites which will help them to raise their standards of living and levels of income.

Microcredit institutions provide the above-mentioned facilities. Micro-credit extends small loans to the poor for self-employment projects which will enable them to take care of their families. Microcredit, today, has been accepted as a means to poverty alleviation through social and economic empowerment of the poor, especially of women. (Puhazhendhi and Badatya, 2002). In many countries, microcredit programs, as effective instrument, facilitated the people to overcome their difficulties and at the same time were and helped them to come out of the clutches of poverty. It enabled them to increase their participation in the economic and political processes of society. (Secretary General, United Nations, 1998).

Professional Banker Magazine, Empowerment of Women, Self-Help Groups, SHGs, Microcredit in India, Microfinance Sector, Reserve Bank of India, RBI, Regional Rural Banks, RRBs, Integrated Women Empowerment Program, IWEP, financial system, ICICI Bank, Microfinance Institutions, MFIs, SEWA Bank.