The Meghalaya government has approved the establishment of the Pla Tangka Cooperative Society (PTCS – a pioneering women-led apex financial cooperative society aimed at strengthening the financial ecosystem for Self-Help Groups (SHGs) across the state.
This initiative, led by the Department of Community & Rural Development (C&RD) in partnership with the Centre for Research in Schemes & Policies (CRISP), has the potential to revolutionize rural financial inclusion and build economic resilience in Meghalaya.
Addressing the media Chief Minister Conrad K Sangma said, “Since 2018, the financial ecosystem surrounding Self-Help Groups (SHGs) in Meghalaya has seen a remarkable transformation. The capital available through the SHG network has grown from Rs 40 crore in 2018 to over Rs 1,000 crore today. Given that the Rs 1,000 crore is already contributing significantly to Meghalaya’s GDP, PTCS will be a game-changer for rural economic development.”
He added that one of the biggest advantages of PTCS is that it will ensure easy and direct access to funds, eliminating the need for SHGs to go through the lengthy and complex processes of applying for loans from commercial or cooperative banks.
Sangma said that this model will act as a financial intermediary, specifically designed for SHGs, making credit readily available and fostering entrepreneurship at the grassroots level.
With this, Meghalaya has become the fourth state in India, after Rajasthan, Andhra Pradesh and Telangana to institutionalize this model.
This decision is a follow-up to the recent cabinet retreat held in Sohra wherein a decision was taken to strengthen the SHG women members and ensure they become financially independent.
The Pla Tangka Cooperative Society (PTCS) will be an apex financial cooperative society that will provide structured financial support to SHGs, ensuring savings-led rural economic growth. Named after local linguistic and cultural roots—”Pla” (Khasi for bag) and “Tangka” (Garo for funds/money) and translating to “bag full of money”—PTCS has been registered under the Meghalaya Cooperative Societies Act, 2015, and is inspired by the Stree Nidhi Model of Telangana.
The initiative aligns with Meghalaya’s SHG Unicorn ($1 billion) Vision, which aims to eliminate multidimensional poverty by ensuring that every family in the state earns at least Rs. 1 lakh additional income per year through multiple livelihood activities. MSRLS aims to expand the SHG network to 80,000 groups by 2028, unlocking Rs. 8,000 crores in enhanced capital and contributing $1 billion to Meghalaya’s economy by 2032.
The CM also stated, “Through these innovative initiatives, we aim not only to empower women to become ‘Lakhpati Didis’ (women earning a minimum of Rs. 1 lakh annually) but also to enable them to scale their income to the level of millionaires through multiple livelihood sources—generating revenues of Rs. 10 lakh and beyond.”
Access to capital has always been limited in Meghalaya owing to the rural dispersion and dispersed nature of banks across different regions. PTCS will act as a catalytic instrument for the next phase of SHG-led economic growth in the state by increasing access to bank linkages across the State.
It may be mentioned that this initiative has been made possible through technical assistance from the Centre for Research in Schemes & Policies (CRISP), which signed an agreement with Meghalaya in December 2022.
As an organisation which works pro bono for the states, its main aim is to give back to society by helping governments design, redesign, and implement better schemes and policies.
PTCS will play a critical role in channeling additional financial resources, thereby enhancing the financial independence and reliability of SHG women. The launch of PTCS is expected to significantly boost rural economic growth and financial inclusion through: Expansion of Business Correspondents to provide mobile credit facilities in rural Meghalaya; Supplementation of existing financial sources to increase cash limits available to SHG members and Improved financial management literacy and credit scores for SHG and CLF members, increasing their bank linkages.
