Financial management and risk mitigation among women`s self-help group in Chhattisgarh state

Abstract

Financial insecurity continues to affect rural women across India particularly in states such as Chhattisgarh where livelihoods rely heavily on agriculture forest-based activities, and informal employment. Women’s Self-Help Groups (SHGs) promoted under the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) and implemented in the state through the Bihan initiative have developed into grassroots financial institutions that promote savings, expand access to credit and strengthen risk-coping capacities. By 2024, Chhattisgarh had nearly 2.9 lakh SHGs comprising more than 34 lakh women with around 82 percent linked to formal banking systems. This study examines financial management practices and risk mitigation strategies among SHG women using secondary data drawn from government reports NABARD publications and scholarly studies. The analysis shows that SHG participation improves household savings behavior, encourages productive use of credit, reduces reliance on informal lenders and enhances resilience to shocks such as health emergencies, crop losses and income instability. Despite these gains, challenges remain in terms of inadequate loan sizes, limited insurance coverage and gaps in financial literacy. Strengthening financial education, expanding credit access and improving market linkages can further reinforce the economic resilience and empowerment of SHG women in Chhattisgarh.