FINANCIAL Inclusion and EXCLUSION DYNAMICS in SELF HELP groups by I.B.raju, mobile:9247857734, email: t.venkateswarlu, moile:9849133244, email: g.krishnamraju. In india, half of the country is unbanked only 55 per cent of the population having deposit accounts Nine per cent of population having credit accounts India has highest number
FINANCIAL Inclusion and EXCLUSION DYNAMICS in SELF HELP groups by I.B.raju, mobile:9247857734, email: t.venkateswarlu, moile:9849133244, email: g.krishnamraju. In india, half of the country is unbanked only 55 per cent of the population having deposit accounts Nine per cent of population having credit accounts India has highest number
FINANCIAL Inclusion and EXCLUSION DYNAMICS in SELF HELP groups by I.B.raju, mobile:9247857734, email: t.venkateswarlu, moile:9849133244, email: g.krishnamraju. In india, half of the country is unbanked only 55 per cent of the population having deposit accounts Nine per cent of population having credit accounts India has highest number
GROUPS By *I.B.Raju, Mobile:9247857734, email: brindukuri@gmail.com **T. Venkateswarlu, Mobile:9296050587, email: tvlu2187@yahoo.com **G.Krishnam Raju, Moile: 9849133244, email: vikransgkr@yahoo.co.in
Prologue Access to public goods and services is an essential condition of an open and efficient society
Banking and financial services are in the nature of a public good
It is essential that the availability of banking services to the entire population without discrimination is the prime objective of public policy
Poor people expectations from the financial system Security and safety of deposits Low transaction costs Convenient operating time, minimum paper work Frequent deposits Quick and easy access to credit Remittances suitable to their income and consumption
Financial Inclusion ..? It is the process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular at an affordable cost in a fair and transparent manner by mainstream institutional players
Empirical evidence shows that economic growth follows financial inclusion
Boosting business opportunities will definitely increase the gross domestic product, which will be reflected in our national income growth Financial Exclusion .? In India, half of the country is unbanked
Only 55 per cent of the population having deposit accounts
Nine per cent of the population having credit accounts
India has highest number of households constituting 145 million excluded from banking
There is one bank branch per 14000 people
33,495 bank branches serving the financial needs of six lakh villages
Only 20 percent of the population is having life insurance coverage
9.6 per cent of the population is having non life coverage
Just 18 per cent had debit cards
only 2 per cent had credit cards Self Help Group(SHG)? A SHG is a group of about 10 to 20 people, usually women, from a similar class and region, who come together to form savings and credit organization They can pool financial resources to make small interest bearing loans to their members This process creates an ethic that focuses on savings first The setting of terms and conditions and accounting of the loan are done in the group by designated members Financial Inclusion and SHG NABARD was launched the pilot phase of the SHG Bank Linkage programme in February 1992
Since then commercial bank are financing SHGs in India
The informal thrift and credit groups of poor are being recognized as bankable clients
The linking of SHGs with the financial sector is win-win situation
The banks are able to tap into a large market, namely the low-income households, transactions costs are low and repayment rates were high
SHG movement, National Rural Livelihood Mission (NRLM) plans to connect at least one woman from each poor household with a SHG to empower and promote economic wellbeing
Presently, there are three crore women who are members of SHGs and planning to raise it to seven crore in the next five years
SHG movement in India skewed and distorted development
70 percent of SHGs and 80 percent of credit flow concentrated in only four states - Karnataka, Andhra Pradesh, Kerala and Tamil Nadu
Inclusion and SHG Dynamics Less Cooperation from family members Mutual distrust and lack of coordination among group members skepticism towards its success, doubts on their ability to save regular basis Maintaining the records and accounts Intergroup and Intra group conflicts Conclusion A song is not a song unless you sing A bell is not bell unless you ring
A Financial Inclusion is not an inclusion unless you include what have been excluded
and yes, this is my conclusion for financial inclusion and exclusion