Microfinance has evolved over the past quarter century across India into various operating forms and to a varying degree of success. One such form of microfinance has been the development of the self help movement. SHG is a group of rural poor who have volunteered to organize themselves into a group for eradication of poverty of the members. SHG is a group formed by the community women, which has specific number of members like 15 to 20. In such a group the poorest women would come together for emergency, disaster, social reasons, economic support to each other have ease of conversation, social interaction and economic interactions. This study on Impact of Self Help Groups on rural women was conducted to study the formation mechanism of Self Help Groups and to measure the impact of SHGs on rural women in means of decision making. The study consists of 250 women members of SHGs and 250 non- SHG women members as selected respondents. The findings indicate that highest majority of women participated in SHGs for economic independence, income-generation activities and social contacts. The impact of decision making on SHG members were found significantly higher than non- SHG members in Household Expenditure, Education of Children, Marriage of Children, Marketing and Social Customs in the home

Keyword: SHG, Rural Women, Impact,