A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All
Sharma, K. C.
- Comparative Study of Self-Help Group Bank Linkage Model and Microfinance Institution Model in Raibareli District of Uttar Pradesh
Authors
1 Bankers Institute of Rural Development, Lucknow, IN
Source
The Microfinance Review, Vol 7, No 2 (2015), Pagination: 158-168Abstract
There are mainly two models of microfinance delivery in India - SHG Bank Linkage Programme (SBLP) and Micro Finance Institutions (MFIs). Broadly speaking, SBLP covers about 72% of all microfinance loans in the country and remaining 28% are covered by MFIs. However, the issue of Non- Performing Assets (NPAs) remains vital in both the models. This study examined various aspects of recovery performance of microfinance clients and other relevant aspects. The study is based on a comparison of SBLP supported by Rajiv Gandhi Mahila Vikas Pariyojana (RGMVP) and Sonata Finance Private Limited, a MFI operating in Raibareli district of Uttar Pradesh. The findings show that recovery from members of both RGMVP SHGs and Sonata Groups is high. The cases of multiple financing are very few in the study area. The findings support the view that if an initiative like RGMVP is present, problem of NPAs in SBLP can be addressed properly.Keywords
Microfinance, Loan Repayment Problems.
- Enhancing Outreach of Microfinance by Use of ICT in BC Model - Field Level Problems and Their Probable Solutions
Authors
1 Bankers Institute of Rural Development, Lucknow, IN
Source
The Microfinance Review, Vol 3, No 2 (2011), Pagination: 109-120Abstract
Microfinance is about providing financial services to poor people. The extent of financial exclusion in India has been a matter of concern since long. RBI has allowed BC model for increasing outreach since 2006. The cost effectiveness of BC model largely depends on the use of Information and Communication Technology (ICT) in Banking. However, there are practical difficulties in accessing financial services through BC model. Some of these problems at customer, BC and Branch level and their remedial measures are discussed in this paper. The problems and probable solutions stated in the paper have largely emerged out of the field based experiences of the authors through their involvement in the training of rural Bankers engaged in delivery of financial services to the rural people.
The paper highlights the need for increasing the outreach of microfinance. Further, the relevance of BC model is highlighted for increasing the outreach. BC model uses ICT extensively for its operations. The paper presents the field level problems involved in financial intermediation faced by villagers and FBCs who are field level functionaries of BCs and Bank staff at the Branch level. The main problems relate to mistrust, inadequate technology support, financial non-viability and technology obsolescence of ICT. Some probable workable solutions to overcome these problems are given in the paper. Banks and BCs have to work more closely in terms of sharing MIS, databases, trust building, capacity building and updating of technology on regular interval to make BC model successful in enhancing outreach of microfinance services.