57
Table 10.1
Constraints felt by members in saving with financial institutions
Serial Number
Reasons
1
Distance to financial institution
2
Time to get away from work
3
Inflexible products offered by financial institutions
4
Lack of knowledge of other financial products
Distance:
Most often than not members found that the nearest bank was too far
away. Hence even if they had extra cash it was easier to hold it at home. Also
they were not very comfortable with the banks too as interaction was poor.
However several villages have seen the proliferation of Business Correspondents
(BC). Many see the same as a useful entrant for their financial needs.
Time
: Members involved in unskilled labour find it difficult to find the time to
interact with banks as they work long hours; hence they stuck to the basic SHG
products. Those involved in skilled labour too feels that banks keep them waiting
and hence are apprehensive about using bank accounts.
Inflexible product:
The products offered by banks are often rigid and suited to
the elite. Most members, while they have visited banks because of their SHG
connection, were reluctant to be proactive and enquire from officials in the banks
on new products and other ways of savings. However richer members did bank
and took products like Recurring deposit, bank savings account and fixed
deposits. Most others opted for LIC products or chits with friends. Both these
were local and members did not have to leave the confines of their village for the
same. Obviously there is a need to change the kind of products offered to these
