SHG-Bank Linkage Programme, launched in 1992, connects women's self-help groups to formal banking for credit delivery and financial inclusion. NABARD facilitates this microfinance model where 10-15 rural women form groups, maintain savings for 6 months, then access bank loans. As of 2023, over 13 crore women participate across 70+ lakh SHGs with outstanding credit exceeding ₹1.5 lakh crore. Programme covers savings, credit, and capacity building components through commercial, regional rural, and cooperative banks nationwide.

The SHG-Bank Linkage Programme represents India's largest microfinance initiative, addressing financial exclusion among rural women through collective lending mechanisms. Unlike traditional banking that requires collateral, this model leverages group guarantee and peer monitoring to reduce default risks. NABARD's role extends beyond facilitation to providing refinance support to banks and capacity building for SHGs. The programme's success stems from combining traditional community savings practices with formal banking infrastructure. It operates through three models: bank-promoted SHGs, NGO-facilitated groups, and government-promoted collectives. The initiative demonstrates significant multiplier effects - every rupee of bank credit generates additional livelihood opportunities, reduces dependency on informal moneylenders charging exploitative rates, and builds financial literacy among participants. Recent digitization through DBT and JAM trinity has enhanced transparency and reduced transaction costs. The programme's evolution reflects broader financial inclusion policy shifts from subsidy-driven approaches to market-based solutions, making it a cornerstone of India's inclusive growth strategy and rural development framework.