The West Bengal government will conduct a comprehensive audit of all self-help groups (SHGs) before releasing fresh loans under its rural livelihood programmes, in a move aimed at improving transparency and preventing financial irregularities in the disbursal of funds. The decision comes ahead of the state's plan to facilitate loans worth around ₹40,000 crore to nearly 12.5 lakh self-help groups during the current financial year, Panchayat and Rural Development Minister Dilip Ghosh said.
The state government has decided to disburse around ₹40,000 crore to nearly 12.5 lakh self-help groups this fiscal. Before that, we need to audit all SHGsPanchayat and Rural Development Minister, Dilip Ghosh
Audit before loan disbursal
Speaking about the initiative, Ghosh said every SHG that has previously availed loans would undergo an audit before becoming eligible for fresh credit. "The state government has decided to disburse around ₹40,000 crore to nearly 12.5 lakh self-help groups this fiscal. Before that, we need to audit all SHGs," he said. The audit is expected to assess financial records, utilisation of earlier loans and overall functioning of the groups to ensure accountability before additional public funds are released.
Move aimed at checking corruption
The minister said the decision follows allegations of misappropriation of funds during loan disbursals under the previous Trinamool Congress (TMC) government. According to him, the audit exercise is intended to strengthen financial oversight and ensure that government assistance reaches genuine beneficiaries. The move is part of a broader effort by the new administration to tighten monitoring of rural development schemes and improve governance within the panchayat system.
One lakh new SHGs planned
Alongside the audit, the government plans to create an additional one lakh self-help groups during the current year to expand livelihood opportunities in rural areas. The proposed expansion is aimed at increasing women's participation in income-generating activities, improving financial inclusion and strengthening grassroots entrepreneurship. West Bengal already has one of the country's largest SHG networks, with more than 12 lakh groups and over 1.2 crore members, making the programme a key pillar of the state's rural economy.
SHGs central to rural economy
Self-help groups play a significant role in implementing livelihood and poverty alleviation programmes in West Bengal through access to institutional credit, interest subvention, skill development and marketing support. The state's West Bengal Swanirbhar Sahayak Prakalpo (WBSSP) provides interest subsidies on bank loans to registered SHGs, enabling eligible groups to access credit at concessional rates. Officials believe that auditing SHGs before extending fresh credit will help improve financial discipline while ensuring that the planned expansion of rural lending is backed by stronger oversight and accountability.