agent s of f i nanc i a l i nc lu s i on
67
kits and troubleshooting basic technical problems and
processes data gathered by the Bank Sakhi-CSP for open-
ing of BSBD accounts. RGMVP provides the services
and resource of the following institution promoted by
it, i.e., the block federation and VOs which coordinate
with the bank and BC, undertaking financial awareness
and financial literacy work and ensuring completion of
enrollment and other activities. The Bank Sakhis are
members of RGMVP-promoted SHG federations. Each
Sakhi is allocated one Gram Panchayat covering 4–5
villages. In the course of her duties she ensures prompt
and efficient service to be provided to the customers and
the safe custody of cash and equipment which are at
their disposal.
The project has been able to break the glass ceiling
and today the women, who never stepped out of their
house, drive this innovative project. Bank Sakhis earn on
an average Rs. 2,000 devoting a couple of hours daily
operating from their home. Bank Sakhis express that
their social stature has enhanced and they take lot of
pride in being able to offer their fellow villagers banking
services.
Over 35 per cent of bankable citizens have enrolled
to use the formal savings services of GBA. 65 per cent of
the SHG members have opened their individual savings
accounts as part of the financial inclusion process.
A Bank Sakhi-CSP is doing an average of 500 transac-
tions per month in a Gram Panchayat. She is earning over
Rs. 1,000 per month. Bank Sakhis have recently started
work as BFs as well by which they would earn a minimum
of Rs. 2,000 per month. The use of CSPs as BFs provided
with incentives to follow-up and facilitate recovery of
overdue loans and bad debts has been successful in real-
izing significant volumes of past dues for the bank on
one hand and generating supplementary incomes for the
CSPs, over and above their limited earnings from account
opening and transactions income, on the other. This role
for the CSPs has been introduced in other areas by other
banks as well. Other innovations by GBA include the use
of the CSPs as agents on commission basis for market-
ing solar lamps and to purchase which the bank provides
loan to the clients.
30
The SHG federation is planning
to retain 15–20 per cent of the earnings of Bank Sakhis
from the BC and BF activities. This will help the institu-
tion to manage the administrative and operational cost
incurred on FI activities. Hence the FI initiative of SHG
institutions will not only be socially relevant, but also be
financially sustainable in the long run. The pilot project
enters its second phase from June 2014 when 25 new
GPs will be added with the objective of scaling up the
services and strengthening the CSP network. In the sec-
ond phase another pilot has been started in collaboration
with Narmada Jhabua Grameen Bank in Indore district,
Madhya Pradesh, with some changes from the UP pilot,
which is in its initial stages with 6 Sakhis having started
functioning. The project has opted for the kiosk model
using laptops for a potential role as a CSC with a wider
range of functions including G2C services. The bank also
provides a fixed remuneration of Rs. 3,000 per month to
the Sakhis, apart from commissions for various types of
activities and transactions.
Table 3.2 provides data on coverage of the pilot
project. It is envisaged that by October 2015 the project
will have 15,000 active account holders across 50 GPs,
and services offered through total distribution CSP agent
strength of 50.
This SHG-led BC model is considered to have im-
mense potential for replication in other parts of India
where the traditional CSP and banking models have
been less effective. However, an independent review of
T
ABLE
3.2
SHG Network as BC Agents Project, Unnao, UP—Progress Report (as of June 2014)
Particulars
Unit (No.)
Particulars
Unit (No.)
Gram panchayats
24
Villages
85
Households
11,346
Bankable population
22,692
Enrolled population
8062
SHGs in the project area
140
SHGs members in project area
1,509
Members of SHGs enrolled individually
989
No. of total transactions
42,795
Value of transactions
Rs. 47.01 lakhs
Source
: GIZ.
