foreword
xv
linkage. A serious need is to develop a well-respected, well-recognized MIS, which supports in SHG management,
providing adequate information and analysis to banks, since unless banks are not assured on quality of SHGs, future
lending will be in jeopardy.
Overall, the last one year saw significant action in the financial inclusion space: a tumultuous regime change at the
federal level; its new resolve to pursue the financial inclusion agenda under the new PMJDY; bold, ambitious recom-
mendations from the Nachiket Mor Committee, some doable, perhaps some not; a new leadership at the Central Bank
and a new frenzied pace at the RBI on introduction of differentiated banking; leadership change at the apex institution
NABARD, the impact of which is yet to be seen; a specialized new bank for women; several technology innovations;
new pathways for MFIs to evolve into the next stage; introduction of a SRO; significant momentum in flow of liquidity
to MFIs, and their coming back on track; the dwindling pace in the SHG lending programme….
Indeed it became difficult for the two authors Tara S. Nair and Ajay Tankha to keep pace with these developments.
After bringing together successfully
State of the Sector Report
last year, with some persuasion, I could get the two to
author this year’s report as well. For several reasons, and given the new context, the report format had to be redesigned,
and although it has strands on continuity and change, I do know that it was far more difficult to work around a
redesigned format. For bringing it all together, in all its complexity, was indeed an incredible effort, and I thank both
Ajay and Tara for the painstaking effort. I also need to thank a whole lot of other stakeholders who significantly helped
with the report. NABARD was most gracious in supporting the effort in a variety of ways—providing critical data,
facilitating banker consultations; and it couldn’t have happened without the support from Harsh, the new Chairman
and Satish, heading the Microcredit Innovations Department. Solutions Exchange, as always, was hugely supportive
of the effort, posting appropriate queries in the Solutions Exchange, organizing consultations and giving pertinent
suggestions. Microsave, MCRIL, GIZ, MFIN, among others, as always, provided high-quality inputs. I would also like
to thank Rajiv Lall, Chairman IDFC, Y.C. Nanda, Brij Mohan, Vijay Mahajan, Ramesh Ramanathan for their valuable
time and inputs. To bring together the report, it is critical to leverage full sector knowledge and insights.
I also would like to thank my own small team for the excellent support they provided to the process. While the old
war horse Radhika Mathur, Executive Director-ACCESS ASSIST, took on the anchor responsibility, we were lucky to
get two new champions on board this year—Sarthak and Anshu, who brought in sharp, crisp alacrity in their coor-
dination and support to the authors requirements, quick turnaround time, and demonstrated indefatigable energies.
Lalitha, as always, provided efficient logistics support to the authors. This small team takes on big tasks and does them
so well; it makes me proud!
This is the eighth edition of the report, released annually at the Summit. With a barrage of activities and initiatives,
and a changed format, it was indeed not easy to bring it out. The fact that the report now has a new title will require
more thought into the next year’s effort for greater alignment. I do wish this report to be positioned as an important
reference book on India’s tryst with financial inclusion. I do hope this effort brings value to the reader.
Vipin Sharma
CEO
ACCESS Development Services
