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DAY-NRLM Evaluation: Only 15% SHGs Start Enterprises, 74.6% Use Revolving Fund for Household Needs

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
04 Jun 2026
~2 min
Source: Indian Express
Key Data:Rs 20,000-30,000 Revolving Fund per SHGRs 2.5 lakh Community Investment FundOver 90 lakh SHGsMore than 10 crore womenNearly Rs 59,000 crore capital support74.6% access to RF
Bodies:NITI AayogRural Development MinistryFinance Ministry
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What This Article Covers

1.A government-commissioned evaluation finds that revolving funds (Rs 20,000-30,000 per SHG) under DAY-NRLM are often used for household expenses instead of income-generating enterprises.

2.The review, by Sambodhi Research for NITI Aayog's DMEO, covered 2,206 households across 11 states and 2 UTs and will decide the scheme's future post-March 2026.

3.Key challenges include pressure to form SHGs without viable business opportunities, fear of loan defaults due to weak product demand, and limited access to higher funds like CIF and CEF.

The Big Picture
Prelims · HighMains · Medium

A third-party evaluation of the flagship DAY-NRLM scheme reveals a significant implementation gap. Funds meant for women's enterprises are often diverted to household expenses due to weak market linkages and pressure to meet SHG formation targets. This review is critical as it will determine the scheme's continuation in the 16th Finance Commission cycle.

Exam Lens

Quick Exam Facts From News

SHGs FormedOver 90 lakh
Women MobilisedMore than 10 crore
Capital SupportNearly Rs 59,000 crore
Revolving FundRs 20,000-30,000 per SHG
SHGs with EnterprisesOnly 15%

1-Minute Revision

  • ›SHGs Formed: Over 90 lakh
  • ›Women Mobilised: More than 10 crore
  • ›Target this Data: Only 15% of SHGs initiated group enterprise activity.
  • ›Target this Nodal Body: NITI Aayog's Development Monitoring and Evaluation Office (DMEO) commissioned the review.
  • ›Target this Legal Point: The scheme's continuation depends on the 16th Finance Commission cycle starting April 2026.

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Q1Static LinkageEasy

Which ministry is the nodal ministry for the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM)?

Q2Statement-basedHard

Consider the following statements regarding the evaluation of DAY-NRLM:

1. The evaluation was commissioned by NITI Aayog's Development Monitoring and Evaluation Office (DMEO).

2. The report found that over 50% of Self-Help Groups had initiated group-level enterprises.

3. The primary reason for low loan uptake was the fear of default due to weak market demand for products.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the evaluation report cited in the article, what percentage of surveyed respondents reported access to the Community Investment Fund (CIF)?

Q4Application/ImpactMedium

What is identified as a key structural problem leading to the diversion of SHG funds for household expenses, as per the evaluation report?

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