The objective of the project is to raise the effectiveness of the formal and non-formal Rural Finance System, including its intermediaries, in terms of providing rural poor (especially women) an access to financial services and improving the financial and organisational viability of its intermediaries through innovations, dissemination of specific information, HID measures and capacity building. It aims at supporting National Bank in its own HID efforts to improve the effectiveness of Rural Financial Institutions (RFIs). Under this project, SDC has agreed to provide grant assistance of Sw.Fr.9.50 million which is equivalent to Rs. 266 Million. In addition to this, SDC has made a provision of Rs.28 million towards technical assistance.

The total cost of the project is estimated at Rs.627 million to be shared by NABARD and SDC in the agreed proportion. The cumulative expenditure under the Project was Rs. 269.29 million as on 31 March 2003. The cumulative grants received from SDC up to 31 March 2003 were Rs.120.05 million.