SHG-Bank Linkage Programme is a powerfull intermediation in microfinance to reach the bottom of pyramid. A proven policy initially perceived for increasing the outreach of banking services amongst the rural poor it has since initiated to a programme for upliftment of standard of living and reduce poverty. The Self-Help Group (SHG) process is a distinct strategy used by developing countries to mobilize women’s labour via a collective approach, supported by microfinance, to launch income-generating activities and maintain interventions aimed at women’s development. Among the regions, percentage of groups having highest credit linkage was in Southern India. In this context Telangana state has selected for the study to assess the impact on SHG bank likage programme on Rural women’s Poverty and empowerment levels after joining in SHGs. This study is based on primary data, analysis has made with adopting poverty eradiction index and empowerment index methods. The results has shown that eventhough SHGs made a significant impact on combatting poverty and uplifting women’s empowerment in the study area still poverty persists among the sample rural women in Telangana State.