Self-Help Groups (SHGs):
(a) Self Help Groups are informal voluntary association of poor people, from the similar socio-economic background, up to 20 women (average size is 14). They come together· for the purpose of solving their common problems through selfhelp and mutual help.
(b) The SHG promotes small savings among its members. They save small amounts Rs.10 to Rs.50 a month. The savings are kept with a bank. After saving regularly for a minimum of 6 months, they lend small amounts to their members for interest.
(c) Based on their performance, they are linkedwith the bank for further assistance under SHG Bank Linked Programme (SBLP) started in 1992. It is a holistic programme of micro-enterprises covering all aspects of self-employment, organization of the rural poor into self Help groups and their capacity building, planning of activity clusters, infrastructure build up, technology, credit and marketing.
(d) The main objective of this programme is to bring the beneficiaries above the poverty line by providing income generating assets to them through bank credit and government subsidy. NABARD estimates that there are 2.2 million SHGs in India, representing 33 million members that have taken loans from banks under its linkage program to date.
(e) The SHG Banking Linkage Programme since its beginning has been predominant in certain states, showing spatial preferences especially for the southern regions like Andhra Pradesh, Tamil Nadu, Kerala and Karnataka. These SHGs have helped the Banks to accumulate more funds
(f) Under NABARD SHG Linkage Programme, SHGs can borrow credit from bank on showing their successful track record of regular repayments of their borrowers k has been successful in the states like Andhra Pradesh, Tamil Nadu, Kerala and Karnataka during 2005-06. These States received approximately 60 per cent of SHG linkage credit (Taruna and Yadav, 2016).
(g) In 2009-10, the number of new SHGs having credit-linked with banks was 1.59 million and a bank loan of Rs.14,453 Crores was disbursed to these SHGs. Further, the number of SHGs which maintained savings accounts with banks at the end of March 2010 was 6.95 million.

Rural Electrification:
(a) Rural Electrification refers to providing electrical power to rural areas. The main aims of rural electrification are to provide electricity to agricultural operations and to enhance agricultural productivity, to increase cropped area, to promote rural industries and to lighting the villages.
(b) In order to improve this facility the supply of electricity is almost free for agricultural purpose in many states and the electricity tariff charged in rural areas is kept very low.
(c) In India 99.25% of villages were electrified at the end of March 2017. As on 31.03.2017, 100 percent electrification was achieved in villages of 20 States/UTs namely. Chandigarh, Delhi, Haryana, Himachal Pradesh, Punjab, Rajasthan, Daman & Diu, D & N Haveli, Goa, Gujarat, Maharashtra, Andhra Pradesh, Kerala, Lakshadweep, Puducherry, Tamil Nadu, Telangana, Andaman & Nicobar Island, Sikkim and Tripura.
The factors hindering the progress of rural electrification in India are:
(1) Lack of Funds: The generation and transmission of power involves huge expenditure and the fund allocation is low.
(2) Inter-state Disputes: As there are inter-state disputes in managing power projects, power distribution is affected.
(3) Uneven Terrain: As rural topography is uneven without proper connection, developing new lines are costlier and difficult.
(4) High Transmission Loss: Transmission loss in power distribution is almost 25 per cent in rural areas.
(5) Power Theft: Unauthorized use and diversion of power are evil practices adopted by affluent people that hinders the rural electrification process.

Several remedial measures have been introduced to reduce rural indebtedness.
i) It includes regulation of money lenders,
ii) Development of rural banks, Regional Rural Banks (RRBs), Micro Finance, Formation of Self Help Groups (SHGs), Primary Cooperative Banks and Land Development Banks, Crop Loan Schemes, Lead Bank Schemes
(iii) Micro units Development and Refinance Agency Bank(MUDRA),
(iv) Promotion of subsidiary occupation, off farm employment opportunities, skill development programmes
(v) The interest rate charged plus transaction cost for poor people and Self Help Groups are much higher as compared to that for rich people.   

Causes for Rural Unemployment
Causes for rural unemployment in India are discussed below:
i. Absence of skill development and employment generation:
Lack of Government initiatives to give required training and then to generate employment opportunities.
ii. Seasonal Nature of Agriculture:
Agricultural operations are seasonal in nature and depend much on nature and rainfall. Therefore, the demand for labour becomes negligible during off-season. So, non-farm employment opportunities must be created.
iii. Lack of Subsidiary Occupation:
Rural people are not able to start subsidiary occupations such as poultry, rope making, piggery etc. due to shortages of funds for investment and lack of proper marketing arrangements. This restricts the employment opportunity and rural family incomes. Government must arrange funds for these people. However, as now they pay huge interest to the local money lenders, for they are unable to get loans from formal sources.
iv. Mechanization of Agriculture:
The landlords are the principal source of employment to the farm labour. Mechanization of agricultural operations like ploughing, irrigation, harvesting, threshing etc. reduces employment opportunities for the farm labour.
v. Capital-Intensive Technology:
The expanding private industrial sector is largely found in urban areas and not creating additional employment opportunities due to the application of capital intensive technologies. Government must establish firms to absorb surplus labour power.

(i) Inequality in the distribution of income and wealth needs to be decreased.
(ii) Efforts need to raise farm non farm rural real incomes through job creation and rural industrialization.
(iii) Investment in basic infrastructure and social services need to be increased.
(iv) Employment opportunities need to be increased.
(v) Natural resources needs to be enhanced.
(vi) Co-ordinated and integrated programmes for solving the present problems.
(vii) Democratic local bodies need to be strengthened.
(viii) Justice, equality and security to the rural population especially women and weaker section need to be ensured.