Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 33 views

    "Microfinance & Financial Inclusion": Presented by

    Uploaded by

    august6
    Microfinance provides small loans and other financial services to low-income individuals. Common microfinance institutions in India include NGOs, trusts, cooperative societies, and banks. They help form groups to distribute loans and provide financial guidance. India needs microfinance due to its large poor population who lack access to credit. Common models are self-help groups and microfinance institutions. NABARD links banks to self-help groups and NGOs. Financial inclusion aims to provide banking services to disadvantaged groups through products like savings and remittances. It focuses on awareness, availability, affordability, and accessibility of services. Initiatives by RBI and banks like PNB use various models to promote financial inclusion in India.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    "Microfinance & Financial Inclusion": Presented by

    Uploaded by

    august6
    33 views20 pages
    Microfinance provides small loans and other financial services to low-income individuals. Common microfinance institutions in India include NGOs, trusts, cooperative societies, and banks. They help form groups to distribute loans and provide financial guidance. India needs microfinance due to its large poor population who lack access to credit. Common models are self-help groups and microfinance institutions. NABARD links banks to self-help groups and NGOs. Financial inclusion aims to provide banking services to disadvantaged groups through products like savings and remittances. It focuses on awareness, availability, affordability, and accessibility of services. Initiatives by RBI and banks like PNB use various models to promote financial inclusion in India.

    Original Description:

    Micro-finance & Financial Inclusion

    Original Title

    MF & FI

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Microfinance provides small loans and other financial services to low-income individuals. Common microfinance institutions in India include NGOs, trusts, cooperative societies, and banks. They help form groups to distribute loans and provide financial guidance. India needs microfinance due to its large poor population who lack access to credit. Common models are self-help groups and microfinance institutions. NABARD links banks to self-help groups and NGOs. Financial inclusion aims to provide banking services to disadvantaged groups through products like savings and remittances. It focuses on awareness, availability, affordability, and accessibility of services. Initiatives by RBI and banks like PNB use various models to promote financial inclusion in India.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    33 views20 pages

    "Microfinance & Financial Inclusion": Presented by

    Uploaded by

    august6
    Microfinance provides small loans and other financial services to low-income individuals. Common microfinance institutions in India include NGOs, trusts, cooperative societies, and banks. They help form groups to distribute loans and provide financial guidance. India needs microfinance due to its large poor population who lack access to credit. Common models are self-help groups and microfinance institutions. NABARD links banks to self-help groups and NGOs. Financial inclusion aims to provide banking services to disadvantaged groups through products like savings and remittances. It focuses on awareness, availability, affordability, and accessibility of services. Initiatives by RBI and banks like PNB use various models to promote financial inclusion in India.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 20

    MICROFINANCE & FINANCIAL INCLUSION

    Presented by

    Prateek Tiwari Vaibhav Mishra Nikhil Mundra Deepak Das Indranil

    What is Microfinance ?
    Its a provision to provide financial

    services and product of very small


    amounts to the poor in rural, semiurban or urban areas for enabling them to raise their income levels and

    improve living standards.

    Microfinance Institutions
    NGOs

    Trusts
    Section 25 Companies Cooperative Societies Cooperative Banks Regional Rural Banks Local Area Banks Public and Private Sector banks Business Correspondents and, Non-Banking Finance Companies

    Functions of Microfinance Institution


    Recruit

    and train responsible and appropriate

    borrowers, each of whom establishes their small


    business.
    Help them form groups that are accountable for each

    other's loan.
    Distribute funds for loan. Frequent meeting with group of borrowers to collect

    loan repayments and to guide their endeavors.

    Why India Need Microfinance ?


    India is the home of one third of the worlds poor,

    which is (26-50)% of our total population.


    About 87% of the poorest households do not have

    access to credit.
    Demand for microcredit up to -$30 bn.

    Supply is not more than $2.2 bn.

    Models of Microfinance in India


    Self Help Group (SHG) Bank Linkage Mode

    small group of people (usually women)

    belonging to poor households come together to

    collectively take effort to help each other


    financially.
    Micro Finance Institution (MFI) Model In contrast to an SHG, an MFI is a separate legal

    organization that provides financial services

    Role of NABARD
    It links the banks with SHGs and NGOs through : Model 1: Bank itself acts as a Self Help Group Promoting Institution (SHPI) in forming the groups, nurtures them over a period of time and then provides credit. 16% of SHGs and 13% of loan amounts are using this model Model 2: Groups are formed, nurtured & trained by NGOs (in most of the cases) or by government agencies and banks then provides credit directly to the SHGs. 75% of SHGs and 78% of loan amounts are using this model Model 3: NGOs act as both facilitators and micro-

    Initiatives in India
    Working group on credit to the poor through SHGs,

    NGOs & NABARD, 1995


    The National Microfinance Taskforce, 1999 Working Group on Financial Flows to the Informal

    Sector, 2002
    Microfinance

    Development

    and

    Equity

    Fund,

    NABARD, 2005
    Working group on Financing NBFCs by Banks

    Challenges for Microfinance in India


    Problems faced by Borrowers
    Coercion

    Microfinance

    institutions

    charge

    exorbitant interest rates.


    Brutal and Aggressive Debt-Collection Tactics Joint Microfinance Not Aimed at Lifting People out of Poverty

    Continued
    Problems faced by Lenders Sustainability Lack of Capital Financial Service Delivery

    FINANCIAL INCLUSION
    Financial Inclusion
    is the delivery of banking services at an affordable cost to vast sections of disadvantaged and low income groups.

    Key Focus of Financial Inclusion


    A pure savings product with inbuilt overdraft facility

    A Recurring Deposit product


    A Remittance product and, Entrepreneurship credit in the form of Kisan Credit

    Card (KCC) / General Credit Card (GCC)

    Approach is based on the fundamental principle of 5As of

    ensuring
    Adequacy and Availability of financial services to all sections of the society

    through the formal financial system covering savings, credit, remittance, insurance, etc. and, at the same time,
    increasing Awareness of such services and
    ensuring Affordability and Accessibility of the appropriate financial products through a

    combination of conventional and alternative delivery channels and technology enabled services and processes.

    WHY FINANCIAL INCLUSION IN INDIA IS IMPORTANT?


    Creating a platform for inculcating the habit to save

    money
    Providing formal credit avenues

    Plug gaps and leaks in public subsidies and welfare

    programs

    70%

    Coverage by banks

    60% 50%
    40% 30% 20% 10% 0% coverage rural 39%

    60%

    urban

    RBI Initiatives
    Branch Expansion in Rural Areas Agent Banking Business Correspondents / Business

    Facilitator Model
    Combination of Branch and BC Structure to Deliver

    Financial Inclusion
    Relaxed KYC Norms
    Roadmap For Banking Services in Unbanked Villages

    NATIONAL PILOT PROJECT FOR FINANCIAL INCLUSION To cover the entire population of union territory for opening zero or low balance accounts. To sanction overdraft to all eligible persons consumption needs.
    SWABHIMAAN
    Bring basic banking services to 73000 unbanked

    villages with a population of 2000 and above by March, 2012 and at least 5 crore new accounts will be opened

    FINANCIAL INCLUSION MODEL BY PUNJAB NATIONAL BANK (PNB)


    Brick and Mortar Model Opening PNB MITRA no frills accounts (zero balance

    accounts) with relaxed KYC norms. Launched PNB MITRA ATM Card with a withdrawal limit of up to Rs. 5000/- per day.
    ICT (Information and Communication Technology)

    Model Business correspondents (BCs) were engaged by banks / technology providers to contact customers for enrollment & issue of biometric smart cards.

    FINANCIAL INCLUSION PROMOTION AND DEVELOPMENT FUND (FIPF)


    Farmer service centres

    Promoting rural entrepreneurship


    Self-help groups Development of human resources of banks

    UNION INCLUSION BY UNION BANK OF INDIA


    Opening up of 11 specialized financial inclusion branches Bio-metric cards Mobile van banking

    CHALLENGES IN FINANCIAL INCLUSION


    Perception of people, lack of trust due to religious

    reasons.
    Poor people consisting 26% who do not have enough

    money.
    Illiteracy 82.14% males and 65.46% females are

    literate.
    Too many formal procedures to be followed. Problem with the AADHAAR card.

    You might also like