This study investigates how administrative practices under the Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM) shape the functioning and sustainability of Self-Help Groups (SHGs) in rural India. Using secondary data from NRLM dashboards, Ministry of Rural Development (MoRD) reports, and NIRDPR evaluations, it demonstrates that variations in SHG outcomes are strongly linked to district-level administrative behavior. States where District Rural Development Agencies (DRDAs) consistently monitor SHGs, maintain digital reporting, and conduct regular training display stronger financial discipline and higher SHG grading outcomes. The study contributes to debates on rural governance by showing that policy success depends not simply on program design but on administrative execution capacity.