Funded by the World Bank, this pilot project was implemented in Raibarelly and Hathras districts of Uttar Pradesh in sodic and non – sodic areas to test the viability and sustainability of SHO’s.  In all 945 groups were formed (475 WSHG, 467 MSHG) and linked with banks through cash credit limits.

1 The sustainability of SHGs in areas where UPBSN has withdrawn 2 Demonstrative effect of sodic area SHGs in non-sodic areas 3 Proactive role of banks in delivery of credit to SHGs 4 The factors ensuring cohesiveness of self help groups.

The project is being implemented in Hathras and Raebareli districts of Uttar Pradesh through five branches of respective RRBs in each district. Reports indicating status and recommendations for the future have been presented to the external monitoring team from World Bank in April 2002 and November 2002.

The Micro Credit Action Research (MCAR) project is a study of various dimensions of SHG Bank Linkage in two districts of Uttar Pradesh namely Hathras and Raebareli in collaboration with Uttar Pradesh Land Development Corporation (UPLDC) under World Bank aided Sodic Land Reclamation Project in 17 districts of Uttar Pradesh. The project is an ongoing exercise looking at formation, nurturing and sustainability of SHG Bank Linkage activities involving Banks (RRBs) and NGOs in the two districts. The Project closed in March 2005.