origin of self-help group can be traced is from bank of Bangladesh, which was founded by Yunus. SGHs were started and formed in In India NABARD initiated in 1986-1987. The of institutional credits available in the rural has led to the establishment of SHGs. The concept self help groups has been evolved to organize the poor to meet their productive and consumption out of their saving. the cash credit facility is to be sanctioned by bank to SHG, the sanction of credit by SHG to its members will be guided as per their terms duration as decided by the groups. This is expected remain unchanged and thus ensure continuance of discipline at the member level. A few members an SHG may graduate faster to start or expand activities requiring much higher levels of than required by other SHG members. In such all other members may not like to stand mutual for a few large sized loans. In such cases, a “Joint Liability Group (JLG)” from members of an may be created. The members of JLG will continue remain members of the SHGs and continue to in the activities of SHGs are earlier. Banks encourage creation of such enterprise / livelihood JLGs as a separate entity. are key financing institution at the rural level, takes the responsibility of fulfilling the credit of Self Help Groups (SHGs). The RRBs also a very crucial role in Self Help Groups (SHGs) - Bank Besides financing SHGs, the RRBs also play a role of serving as SELF HELP PROMOTIONAL (SHPIs). Recognizing the importance of Bank linkage, Government has requested all commercial banks to follow the example set some public sector banks and meet the entire credit of SHG members. Linking of SHGs with has thus been emphasized in the Monetary Policy of Reserve Bank of India and Union Budget from time to time and various have been issued to banks in this regard.