64
Figure 11.1 Comparison of Tamil Nadu and Karnataka – Amount (in Rs.) in
various financial institutions
Figure 11.1 shows members endorsement to a financial institution, and depicts how much
they trust the institution. The average amount of money accumulated in the form of a
fixed deposit or in a chit fund seems very high. This is followed by savings in banks. All
these are interest bearing and obviously members saving in the points to their awareness
of time value of money. Figure 10.4 (previous Chapter) and figure 11.1 show that there
are few members parking large amounts of money as a fixed deposit or in chit funds.
Also there are a large number of members who support the LIC policy and the bank
savings account but their outflow for the same is low. This is one more way of endorsing
the fact that beyond voluntary savings there is further presence of “low frequency
savings.”
This is not an anomaly too because there are few well to do members. However, fact that
members are placing large amounts in fixed deposits as compared to just keeping them
Bank
Post
office
RD
FD
Small
Saving
LIC Friends
Chit
fund,
shop
TN 1713
576
441 48750 749
2730 12272 798
KAR 14345 2700
383 78125
0
1311 11750
0
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
Average amount/SHG member in Rs.
Institution
TN
KAR
