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ಸಂಜೀವಿನಿ - ಕರ್ನಾಟಕ ರಾಜ್ಯ ಗ್ರಾಮೀಣ ಜೀವನೋಪಾಯ ಅಭಿಯಾನ

Sanjeevini - Karnataka State Rural Livelihood Mission

Government of Karnataka

Dr. Sharanaprakash Rudrappa Patil

Hon'ble Minister for Skill Development Department, Entrepreneurship & Livelihood Department

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Financial Inclusion

FINANCIAL INCLUSION

 

Financial Inclusion is one of the most important components of the National Rural Livelihood Mission. The Mission is working on both the demand and the supply side issues to ensure that there is an adequate credit off take by the Community Based Organizations (CBO) from the mainstream financial institutions. NRLM facilitates universal access to the affordable cost-effective reliable financial services to the poor. These include financial literacy, bank account, savings, credit, insurance, pension and Digital banking services. The core of the NRLM financial inclusion and investment strategy is “making poor the preferred clients of the banking system and mobilizing bank credit”.

 

1. Bank Linkage/ SHG-Credit Linkage:

 

The SHG-Bank Linkage Programme is the systematic steps to link women Self Help Groups for delivering financial services to the poor in a sustainable manner. Linking the SHG with the Bank is an essential prerequisite for promoting Financial Inclusion. Also, SHGs should have access to repeat doses of Bank Credit to meet their consumption and production requirement at affordable interest rates. Apart from providing access to the Credit; Bank Linkage enables SHGs to utilize other services such as remittances of Mission & other Govt Funds, insurance etc.

 

2. Revolving Fund

 

Revolving Fund (RF) is an incentive to inculcate the habit of thrift and accumulate their own funds towards meeting their credit needs in the long run and immediate consumption needs in the short run. RF catalyzes the process of internal lending. Maximum amount permissible is Rs 15000/- per SHG. RF adds to the corpus of SHG leading to entitlement of higher loan amount from Banks.

 

3. Community Investment Fund (CIF)

 

Community Investment Fund (CIF) is a corpus and used for meeting the credit needs of members of the Self-Help Groups (SHGs). It is catalytic capital for improving the livelihoods and quality of the poor communities. This may be supported further by leveraging finance from commercial lending institutions. Interest rate at @12%/pa to SHG members:

 

 

 

4. Mission One GP One BC Sakhi:

 

Promotion of Digital Finance to expand availability of banking services for SHG ecosystem. In line with   this, the mission has taken the initiative to train and deploy women SHG members as Business Correspondents (BC) to offer doorstep banking services in rural areas to support SHG ecosystem by building access to financial services and contributing to the effective financial inclusion of poor, along with dual authentication, mapping of SHG and member accounts with regulators and technology service providers (TSA) to identify other suitable digital financial technologies / platforms to further the financial inclusion agenda.

 

Business correspondent (BC) model is one of the possible models with multi-pronged strategy to overcome constraints in banking infrastructure and increasing financial requirements of SHGs. It works as an alternate banking channel strengthening the reach of banking services to rural pockets and bringing more households in the ambit of financial inclusion.

 

The Ministry of Rural Development (MoRD), Government of India, under the DAY-NRLM has launched “Mission One GP One BC Sakhi” with an aim to create 1.25 lakh BC Sakhi across the country. It has been proposed to identify and train SHG members at RSETI (Rural Self Employment Training Institutes) and enable them to pass certificate examination of business correspondents conducted by Indian Institute of Banking and Finance (IIBF). All candidate identified, trained and certified BC Sakhi will be equipped with FPS and an application for AEPS transactions like Digi-Pay Pay Points of CSC (for making payments using AEPS) or any other option will be provided with relevant equipment suited for the role.

 

5. Social Security Schemes- Life & Accidental Insurance, Health and Pension Schemes

 

Guidance to all SHG members on Social Security Schemes announced under Pradhan Mantri Schemes was provided to cover the SHG members and their family in social safety nets for protection from numerous perils (ie; accident, illness, death, natural disaster etc.). In the initial stage, Mission will cover life insurance, Accidental insurance and Health Insurance. Enrollment of SHG members under PMJJBY and PMSBY are done through Bank account (ie; any individual having savings bank account can avail the services by paying premium of Rs. 436 (Rs. 436+ Rs. 20).

 

6.Financial Literacy:

 

Financial Literacy is one of the important strategies to keep SHGs households aware about relevant financial services and build their capacity on same. The programme has strong focus on building access to formal banking services for women SHGs, livelihood promotions, enterprise development, linkages with social security schemes and skill development. The suggestive modules/components of financial literacy campaign under DAY-NRLM are as follows:

 

 

Financial Literacy is one of the key enablers to facilitate above mentioned services rendered by member of the community who selected and trained as Financial Literacy Community Resource Person (FL CRP) as per MoRD advisory. There should be 8-10 FL CRP in each block.