The study based on primary data collected from four NGOs in Karnataka and Tamil Nadu reveals that the NGOs have played an important role in mobilizing the poor women into plat form known as the SHG and brining them on mainstream development in the sample villages as against the controlled villages. The study showed that the average annual savings, micro credit accessed and its utilisation was quite large in the case of NGO working villages as compared to the controlled villages. Going by social groups, it has been found that the average annual savings and micro credit accessed was much higher in the case of SC/ST members of SHGs as compared to that of non-SC/ST members. Bulk of the micro credit accessed was used for consumption purpose followed by investment. The study suggests that as the NGOs are the source of changes in the life of the poor households, they can be encouraged to establish in the backward villages. The members of SHGs belonged to the SCs/STs should be given greater priority in access to adequate micro credit and its investment in self-employed non-farm business so that they can come out from the vicious circle of poverty. The scale of monthly savings with the SHGs is far less and hence, it should be increased.  As the performance of SHG members of NGOs working in Karnataka state is relatively poor as compared to that of Tamil Nadu, it is quite important to ensure greater access to adequate micro credit and invest in rural non-farm activities of local importance.

JEL Codes: G21

KEY WORDS: Savings, Micro credit, Self-help Groups, Non-Government Organisation, Poverty, Scheduled Castes, Scheduled Tribes and Others,