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Policy–Practice Gaps:
Members mentioned about the Policy Practice Atlas on Micro finance produced by
UN-Solution Exchange and UNDP, wherein the policy–practice gaps of microfinance sector are presented.
Inclusive Finance India Report
can highlight these policy–practice gaps to draw the attention of policy makers.
Value Chain Financing:
Further, members quoted example of the dairy sector and shared a case study of a CBO
that highlights the needs of financial products like credit for purchase of milch animals, establishing feed shops, fodder
plots, milk collection centers, milk sale points, etc. Members shared a case study on how a CBO was able to overcome
the challenges on such financial products.
Financial Inclusion of Rickshaw Pullers:
Highlighting about the importance of financial inclusion of rickshaw
pullers, members informed about an e-discussion conducted by Microfinance Community and also about a national-
level study of UNDP that covers financial inclusion issues of rickshaw pullers. The reports provide key policy and
operational issues related to financial inclusion of rickshaw-pullers. Members also shared another comprehensive report
of a study on rickshaw pullers—‘Evolving Participatory Relationships for Uplifting the Urban Poor Rickshaw Pullers:
Next Step Forward’.
Coverage of Livelihood Insurance and Micro Leasing Model:
The Goat Trust, working in domain of small
livestock-based livelihoods with women from poor families has piloted ‘Bakari Bank’ program. Under the programme,
integrated leasing and insurance and technical support services are provided at the door steps through mobile vans.
The service providers use mobile vans to reach target villages and provide micro leasing services for procuring goats and
ducks along with credit limit facilities (something like Livestock Credit Card-LCC).
Wholesaler–Retailer Model:
While on one hand SHG banks linkage programme is focusing on outreach, the
wholesaler–retailer model stresses on commercial banking. Besides NABARD and SIDBI, other important players
of microfinance are Rashtriya Mahila Kosh, sectoral national and state financial corporations, private banks like
ICICI bank, Citibank, ABN Amro bank and funding agencies. These apex financial institutions and funding agencies
including NABARD and SIDBI are providing support to a large number of MFIs in India with different operational
strategies. The report may cover various linkage and operational arrangements that are coming under ‘Wholesaler—
Retailer Model’.
Members shared about the small pilot initiated by CARE Indiathat communicates that people living in poverty are
able to access diverse range of financial instruments to run their business, build their assets, balance expenses, shielding
themselves from risk.
Role of Regional Rural Banks Like Punjab Gramin Bank:
Sharing the initiative taken up by Punjab Gramin
Bank, members informed that door to door survey was conducted to know the real living conditions of the poor and
landless people considering village as a single unit. Further, environment was created to start the project of micro
finance without any external assistance and grant in the light of the model of Gramin Bank, Bangladesh. This was
within the limits prescribed by the Bank. Members informed that the initiatives on financial literacy were proved to be
very useful as it helped bringing the non-bankable poor close to the Banking Institutions.
NABFINS Initiatives:
Members shared about microfinancing initiatives of NABFINS and also expansion plans of the
organization, more specifically on financing Producer organizations in a big way. NABFINS lends to Self Help Groups
at interest rates ranging from 15 per cent to 16 per cent against the RBI cap of 26 per cent. With a margin of 5–6 per
cent NABFINS made a net profit after provisioning of Rs. 14 crore in financial year 2013–14 with a disbursement/
loan portfolio of Rs. 644 crore. While a major share of its portfolio comprises direct lending to SHGs/JLGs, it has
taken up the challenge of supporting second level institutions like producer companies and cooperatives which manage
