New Delhi: Banks have flagged rising fraud and delinquency cases in self-help groups and proposed measures, including assigning a unique registration number (URN) before account opening or loan sanction.Lenders have raised the issue with the government and suggested creating a central registry at the bank or industry level for cross-verification, said people familiar with the developments. They have also made a submission that the credit details of SHG & linkage with its members should be shared with credit information companies or CICs."We have suggested that the URNs should be mandatory at the time of account opening, loan sanction and that they're to be integrated into the core banking system or CBS for real-time verification," said a bank executive, requesting anonymity.In March 2026, the government informed the Lok Sabha that the total non-performing assets (NPA) percentage in SHG loans is 1.74%."Fraud is one of the key reasons for increase in delinquencies, with SHG members being active in multiple groups and using loans for consumption rather than income generation," said another bank executive, adding that lenders are already pursuing community-based recovery mechanisms (CBRM) to curb such instances.TIL CreativesSuggest new methods to tackle rise in delinquencies such as a central registry to cross-verify loan exposureLenders also favour setting up a central registry for SHGs. "Since most SHGs do not have any unique identifier like PAN or GST number, a central registry will have credit details, which will also keep banks informed about their loan exposure," the banker quoted added.Under existing regulations, SHGs should be in active existence for at least six months as per their books of accounts (and not from the date of opening of S/B account) to avail loans. Defunct SHGs are also eligible for credit if revived and continue to be active for a minimum period of three months.The government has already developed a portal to monitor the progress of SHG-bank linkage and keep track of the repayment of bank loans given under the National Rural Livelihoods Mission, or NRLM.In March, the government informed the Lok Sabha that SHG-bank linkage is a key and regular agenda item in the bankers' committee meetings at all levels, namely the state level bankers' committee (SLBC), district level consultative committee (DLCC) and block level bankers' committee (BLBC).