Meghalaya cabinet approves women-led financial co-operative society to push self-help-groups

Guwahati: Meghalaya Cabinet on Thursday approved a plan to establish an all women-led financial co-operative society aimed at strengthening the financial ecosystem for Self-Help Groups (SHGs) across the state.

Making the announcement, CM Conrad K Sangma told reporters in Shillong that the society named Pla Tangka Cooperative Society (PTCS), is led by the department of community and rural development in partnership with the Centre for Research in Schemes & Policies (CRISP). Pla in Khasi language means bag and Tangka in Garo means cash.

It has the potential to revolutionize rural financial inclusion and build economic resilience in Meghalaya, he said.

“One of the biggest advantages of PTCS is that it will ensure easy and direct access to funds, eliminating the need for SHGs to go through the lengthy and complex processes of applying for loans from commercial or cooperative banks. This model will act as a financial intermediary, specifically designed for SHGs, making credit readily available and fostering entrepreneurship at the grassroots level”.

A statement issued by the state government said, with the cabinet approval, Meghalaya became the fourth state, after Rajasthan, Andhra Pradesh and Telangana, to institutionalize the model.

Sangma said since 2018, the financial ecosystem surrounding the SHGs in the state has witnessed remarkable transformation. "The capital available through the SHG network has grown from Rs. 40 crores in 2018 to over Rs. 1,000 crores now. Given that the Rs. 1,000 crores is already contributing significantly to Meghalaya’s GDP, PTCS will be a game-changer for rural economic development”. The number of SHG also increased from 4,000 in 2018 to 5151,674, comprising 5,20,177 members.

"Access to capital has always been limited in Meghalaya owing to the rural dispersion and dispersed nature of banks across different regions. PTCS will act as a catalytic instrument for the next phase of SHG-led economic growth in the state by increasing access to bank linkages across the State," the CM said.

The initiative aligns with Meghalaya’s SHG Unicorn (Rs. 1 billion) Vision, which aims to eliminate multidimensional poverty by ensuring that every family in the state earns at least Rs. 1 lakh additional income per year through multiple livelihood activities. MSRLS aims to expand the SHG network to 80,000 groups by 2028, unlocking Rs. 8,000 crores in enhanced capital and contributing Rs. 1 billion to Meghalaya’s economy by 2032, said the statement.