75
13.2.2 Recommendations
We find that the family income in both the states is high compared to their individual
income. This shows the power to save. Presently NGOs seem to offer only one savings
product which has to be comfortable to the entire group. It is important to offer flexible
savings products so that members can save their extra cash in the same. The products
offered can be recurring deposits, flexible recurring deposit and fixed deposits. Products
need to be more liquid than the normal banking products and must be facilitated by a
local BC.
We also noticed that one way to make members think about their potential needs in the
coming year is to make members write down their dream goals and save for it. This can
be practiced in al SHGs like the voluntary saving product. This has the potential for
members to borrow less and depend on themselves on the group for loans.
Most NGOs are separated from one another. Their interaction is bare minimum. Also
many NGOs and some of their SHGs come out with innovative products, like reduction
of interest rate once the corpus goes up, dividing only a part of the corpus collected etc.
It would be useful for groups to meet to understand from one another the best practices.
13.3 Extent of savings beyond the SHG
13.3.1 Findings
In spite of having constraints like time and distance to save beyond the mandated amount
we find that there a majority of members who have availed the LIC policy, taken to
recurring deposit and fixed deposits. This is small amounts saved over a period of time.
Obviously they are in need of a variety of savings products which makes them save
