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products were the main constraints faced by members to open accounts outside the SHG.
Higher savings group indicated that interest; higher savings leading to larger loans that
could then be availed within the group, the habit or discipline of savings and ability to
manage conflict and manage loan disbursement smoothly are often attributed as reasons
for high savings.
In conclusion we realise that, savings emanates from income and potential expenditure
whether known or unknown. Our research framework discusses how the initiation into
“low frequency savings” can lead to “high frequency savings”. We find evidence to the
same in our project. Presence of large quantities in fixed deposits and with friend and
chit funds was noted too. A small number of members had large fixed deposits or big
amounts with their friends or in chits. This is presence of “high frequency savings”.
“Low frequency” savings was however more predominant as compared to “high
frequency” savings. “Low frequency saving” has been prevalent in the form of voluntary
savings, LIC policies and bank savings account. A majority of members resort to “low
frequency savings”.
Based on these findings we make the following recommendations
NGOs have to be encouraged to motivate their affiliated SHGs to save with a specific
task or dream goals in mind. To facilitate this orientation financial institutions, like
banks, need to create flexible and liquid savings instruments (eg. flexible recurring
deposit). Given the propensity of the participants to buy insurance products more variety
(for example, health insurance) can also be launched. In addition, banks also need to
