82
same could be because there are no financial products offered to them with
limited liability. In order that members work together and do joint business it
is necessary for them to realise the amount of liability they will face in the
joint business. They also need higher level training in accounts for the same.
Flexible recurring deposit products
A majority of the members do have a bank savings account. A few NGOs
encourage members to save for their “dream goals”. It would hence be
encouraging to offer recurring deposit accounts which are flexible. Products that
can be thought off are a fixed amount saved every month for a given time period
where members can skip paying 2-3 months. The months they do not want to pay
can be decided by them. Another recurring deposit product that can be thought of
is variable sums collected every month.
Products that are liquid
The members also are very much in need of liquidity. Hence the products offered
should provide for easy liquidity. We must remember that they are living on the
margin and hence to them liquidity of money is the most important aspect.
Savings account through the BC
The BC should be the nodal point of contact between the member and the
bank/financial institution. This way the BC can service a fixed number of clients
and they can be agents for financial literacy, selling of products as well as assure
liquidity of the products.
