The effectiveness of self-help groups (SHGs) would be considerably enhanced if a symbiosis could be worked out between them and panchayati raj institutions (PRIs). The key to this is the integration of SHGs with the democratically elected and empowered panchayats when the requisite devolution of powers, functions and authority to the latter takes place. A proposed scheme which will allow SHGs and PRIs to work in tandem and reinforce each other's work.