How Karnataka Grameena Bank Won National Award for SHG Linkage

Karnataka Grameena Bank has been awarded the ‘National Award for Outstanding Performance in SHG Bank Linkage 2024-25’ by the Union Ministry of Rural Development. The recognition was announced on March 23 2026 during the national conference in Hyderabad. This award highlights the bank’s strong contribution to rural economic empowerment and especially via Self-Help Groups (SHGs). As thousands of SHGs supported and crores credit extended bank has emerged as the key player to strengthening financial inclusion in rural India.

National Award and Its Significance

Awards was presented at the National Conference on Financial Literacy and Capacity Building along with the 25th Central Level Coordination Committee meeting held in Hyderabad.

This recognition is one of the most prestigious honors in the rural banking sector. It also acknowledging institutions that made significantly contributed to financial inclusion and grassroots development of the rural areas.

Karnataka Grameena Bank received this award for its outstanding work in strengthening the SHG-Bank Linkage Program. This is a flagship initiative which is aimed at connecting rural poor, especially women to the banking systems.

Role of SHGs in Rural Economic Empowerment

Self-Help Groups (SHGs) play a crucial role to empowering rural communities by providing access to credit, savings and livelihood opportunities.

Also the bank has actively supported the movement by offering financial assistance and banking services to thousands of people of SHGs.

Till date the bank has extended ₹2,835 crore in credit to 80,904 SHGs and it shows bank’s commitment to grassroots development.

These SHGs largely are part of rural women and the use the funds for small businesses, agriculture and other income-generating activities.

Alignment with Government Schemes and Policies

Bank’s efforts are closely aligned with the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM).

This flagship scheme of the Government of India which aims to reduce rural poverty by promoting self-employment to rural poor into SHGs.

Also the bank’s growth has been strengthened by the ‘One State – One Rural Bank’ policy under which multiple regional rural banks were merged to improve efficiency and outreach.

About SHG-Bank Linkage Programme

The SHG-Bank Linkage Program (SHG-BLP) was launched by NABARD (National Agricultural Bank For Rural Development) in 1992 to connect Self-Help Groups with formal banking institutions.

It is considered as one of the largest microfinance initiatives in the world.

The program focused on providing collateral-free loans to SHGs and encouraging the savings habits and promoting financial literacy among rural populations.

Question

Q. Karnataka Grameena Bank received the National Award for Outstanding Performance in which area?

A. Digital Banking
B. SHG Bank Linkage Programme
C. Agricultural Loans
D. Export Finance