Mass Scale Microfinance Intervention for Growth of Tribal Economy - Role of Co-Operative in Kandhamal District

The Boudh Central Co-operative Bank, operating in Kandhamal district having 51% tribal population and 71% of the geographical area covered with jungles, was not complying with minimum share capital requirement for the last 20 years. Its various mass scale microfinance interventions with a proper strategy and planning have made a visible impact in the economy of the district which also has helped the CCB to increase its resources, lending, profitability, operational efficiency, recompliance with Section 11 of Banking Regulation Act and license by RBI.

The mass scale interventions in the areas of Joint Liability Groups, technology transfer in potato and groundnut, graduating the SHGs to micro-enterprises with tie up with companies like ITC with quality and volume assurance in a sustainable manner, micro-insurance in a massive scale, using the Farmers Clubs, SHGs and JLGs for identification, propagation and mass scale social mobilisation were a few interventions successfully grounded in the district with real financial benefits percolating to the people.

With proper planning, co-ordination and guidance, it is possible to change the landscape of tribal economy, making the co-operatives responsible and the focal point for technology transfer, farmers' counselling, credit and large-scale social mobilisation.