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Empowering Women through
Financial Inclusion
F inancial
Inclusion is enabling access to and delivery of banking services at an
affordable cost to the vast sections of disadvantaged and low-income
groups. It is not a one time effort, but an ongoing process. It is a
development system which requires concerted and team efforts from all
the stake holders the Government, the financial institutions, the
regulators, the private sector and the community at large. From the
sporadic attempts of today, dispersed across the nation, it should
gather momentum and grow in geometric proportions and develop into a
focused and effective movement. If this is to be achieved, it requires
passionate involvement, dedication and commitment of all who are
committed to the cause. It requires a phenomenal change in mindset of
every individual involved, be it the banker, or the bureaucrat, or the
regulator. Therefore, it requires creating awareness at all levels. At
the same time, the role of technology in the whole scenario cannot be
undermined either. It has to be admitted that today, more than ever
before, technology plays a vital role in bringing about integration
among all social and economic classes. Accessibility, affordability,
appropriateness and benefits determine how deep financial inclusion
penetrates the social fabric of a given village. Financial inclusion can
empower even the poorest person and bring about a dramatic change in his
fate.
Empowering women
Development Alternatives
initiated a women focussed programme by organising rural women in the
form of self help groups (SHGs) to enhance their participation in the
livelihood activities supported by NABARD in the year 2007. A total of
1,300 SHGs have been formed and more than 15,000 women have been
connected with SHG-bank linkage programme in Bundelkhand region till
March 2011. These women are practicing micro savings and credit
operations by graduating as community based organisations, SHGs and
federations.
The programme empowered the
target groups to mobilise around financial inclusion, enterprise
development and poverty reduction measures, and financial access and
control over available resources. The present endeavour and innovative
micro credit planning and research activities are increasing the
mobility of the financial products of banking institution to the womens
groups at grass root level for the improved economic development. The
micro savings and credit operations have supported the target
beneficiaries to a great extent. Some of the positive results of the
programme are the following:
A habit to save small
amount of income regularly to mitigate the financial emergencies of
their households
Developing financial
planning for the common people
Developing a credit
linked development approach for the productive sectors
Managing family budget
in a systematic manner
Linking with financial
institutions and mobilising bulk lending
Developing a trust of
mutual understanding for the prompt repayment to banks
Continuous financial
literacy and inclusion of all members of SHGs
Increasing self
confidence and dignity of the beneficiaries considerably
Case Study:
The Women SHG Phoola Bahu
in Virguan village of Badagoan block of Jhansi District was created on
January 2, 2009. The group linked with bank on August 5, 2009 with
account number 5854 at Sarv UP Gramin Bank, Gandigar ka Tapra, Jhansi.
The group got first CCL on November 5, 2009 with account number
98101700058544. The Bank sanctioned Rs. 25,000 as cash credit limit
(CCL).
The group returned the first
CCL within one year with its own dairy business. After returning of
first CCL, the Bank graded the group and increased the CCL to Rs. 5 lakh
with account number 94108700001026. The members of the group utilised
the CCL amount in purchasing eight buffaloes. The group sell 150 liters
of milk per day and earns an amount of Rs. 3,600 a day. The organising
of womens groups and access to the financial services in the willingful
manner changed the life of women members. These women have become a role
model for other groups to leverage the financial resource for livelihood
development. q
Santosh kumar
skumar2@devalt.org
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