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Further members feel that most of the efforts from policymakers and banks have been ‘supply-driven’ and by push
of the regulators. There has been serious mismatch between the needs of people and supply of banks and other financial
service providers, so a new thinking and new approach is required.
Broadly, members suggested coverage of following aspects in the
Inclusive Finance India Report 2014
:
• Urban microfinance—demands of urban poor, service providers and M gaps in urban areas
• Examples of state-led successful models in the report
• Impact of the microfinance—coverage of impact studies
• Cooperative initiatives for inclusive finance
• Innovations in financial inclusion including innovative financial products
• Successful pilots on community-based institutions and individuals acting as business correspondents and challenges
faced by business correspondents
• Replicable models/sustainable models on financial inclusion
• Financial inclusion across value chain
• Success stories emerging out of financial literacy /financial capability
• Critical analysis of SHG-Bank Linkage Programme
• Micro financing for elderly
• Policy–practice gaps
State-Led Successful Models:
Members endorsed that the ‘Samruddhi’—Madhya Pradesh Model for Financial
Inclusion has generated lot of interest among microfinance practitioners and various state governments. Many state
governments are in process to replicate the same. They also shared a short paper that incorporates step-by-step approach
and also concerns and debate among the microfinance community.
Using Post Offices to Reach the Unreached:
Members mentioned about the large network of post offices
which can be utilized for financial inclusion. They shared that out of the total 154,866 post offices, 139,040 (89.78
per cent) are in the rural areas. Apart from the advantage of reach, post offices are also having added benefit of having
information about each and every family in their area of operation. Members recommended utilizing post offices for
microfinance after building capacities of the human resource engaged in post offices and establishing better systems
and procedures.
SHG-Bank Linkage Programme:
The SHG bank linkage programme is one of the largest programmes of microfi-
nance in the world. Members feel that the programme has not kept pace with the delivery systems as still many bankers
are reluctant to open the accounts of SHGs and provide them loans in rural areas irrespective of the clear-cult guidelines
of RBI and NABARD. In some cases, branches of banks also force NGOs/SHPIs to provide informal guarantee for the
repayment of loans of SHGs. An analysis of the programme needs to be covered in the report.
Incorporating UrbanMicrofinancing in the Report:
Highlighting on the importance of urban micro financing,
members informed that it is difficult to get a consolidated information about financial inclusion in urban areas. The
reports of NABARD provide state-wise and agency-wise information about SHGs and micro financing but not in
terms of rural and urban. Further, members informed about National Urban Livelihood Mission (NULM) of Ministry
of Housing and Urban Poverty Alleviation (MoHUPA) wherein there is a component of financial inclusion also.
Members recommended going through the suggestions made by the members of MF Community on micro financing
in urban areas in a discussion on NULM.
