Does Group Maturity Affect Savings and Investment Behaviour of Women: Empirical Investigation of Self-Help Groups in Uttar Pradesh

The aim of this study is to understand the impact of group maturity (age) on savings and investment behaviour of self-help group (SHG) members. Based on the survey data of 300 SHG members, the study finds that as groups mature or get older there is a three-fold rise in the share of household savings being diverted to savings in the SHGs. The results of the propensity score matching (PSM) reveal that group maturity has a positive impact on the per capita savings of member households. Furthermore, the usage of bank loans for a majority of beneficiaries distinctly shifts from consumption purposes to income-generating activities as the group becomes more mature.