FUNCTIONING OF WOMEN SELF-HELP GROUPS IN ORISSA Sponsored by DEPARTMENT OF WOMEN AND CHILD DEVELOPMENT (Research Unit) GOVERNMENT OF INDIA New Delhi THE ORGANISATION FOR WOMEN AND RURAL DEVELOPMENT (TOWARD) Sahid Nagar, Bhubaneswar, OrissaEXECUTIVE SUMMARY When a group of poor or disadvantaged people come together on their own (voluntarily) with the clear objectives of bringing about a positive change in the situation in which they find themselves in through Self-Help and self reliance, such a group is called Self-Help Group (SHG) and alternatively described as Saving and Credit Group (SCG). With the success of Gramin Banks in Bangladesh due to the concept of micro finance, many countries across the world including India have introduced SHG concept in a large scale, as an alternative non-institutional way of credit intervention for the socio-economic upliftment of the backward, poor. and vulnerable communities, Though SHG can be started voluntarily by a few members in the unorganized sector. still the Govt, NGO, or charity organisation initially promotes enthusiasm and encouragement for the better start of SHGs. The institutions concerned with SHGs in this way are called Self-Help Promoting Institutions. In Orissa, during 1990s a large number of SHGs have been promoted by different agencies including Govt., NGOs different banks, charity organisation and voluntary organisation. In order to assess the impact of SHGs on the existing socio-economic set up and to provide an exhaustive analysis of SHGs in Orissa, the present study has been undertaken by TOWORD as per the directions made by the Dept. of women and child Development, Ministry of HRD, Govt. of India. OBJECTIVES The analysis of the study has been performed keeping in view the following objectives, (@ To trace the historical, social and cultural factors related to the development of Self-Help Groups in Orissa.(ii) To study the organisational structure and pattern of women Self-Help Groups in Orissa. (iii) To examine the role of voluntary organisation / Government agencies in the formation of the Self-Help Groups. {iv) To determine the membership profile of the Self-Help Groups. (vy To assess the activities and functioning of groups in terms of their operational activities. starting problems and further scope. (vi) To ascertain the impact of SHGs on the socio-economy of its members (vi) To find out the kind of linkages established by the SHGs with banks/financial institutions. (viii) To examine the role of SHGs in encouraging thrift and credit among the poor women in rural area. (ix) To suggest steps. measures and changes in SHGs for sustaining and strengthening towards greater future viability and positive impact on micro credit availability to the rural poor. STUDY METHODOLOGY The present study has been carried out by analysing the suitable data obtained from 150 women SHGs working in the 6 districts as Ganjam, Gajapati, Kandhamal. Rayagada, Kalahandi. and Keonjhor. These different SHGs are promoted by the SHPIs like Govt.. banks and voluntary organisation, Further, to ascertain the socio-economic impact of SHGs on its members, 300 members (2 from each SHG) have been interviewed with the aid of survey technique. FINDINGS Analysing the primary data obtained form 150 women SHGs and 300 members, the findings of the study are outlined below. 1 Majorities of the SHGs are promoted by different local NGOs and their share stands at about 45 percent. Besides NGOs, the percentage share of women SHGs formed under DWACRA scheme (16.66%), Indira Mahilany Fojana (10.0%), Commercial Banks (5.33%), Regional Rural Bank. (10.0%), District Administration (16.66%), Nehru Yuba Kendra (10.0% and SGSY (1.33%). An analysis about the group size shows that majority of the SHGs about 4 percent of the SHGs are having with the members ranging from 10-15. Les: than 10 members are noticed in about 35 percent of SHGs. 15-25 member: are reported in 18 percent of SHGs and above 75 members are reported ir 15 percent of the SHGs. It has been observed that the members, in addition to the usual SHG activities are also related with other occupations for strengthening their economic base. About 48 percent of the SHG members are related with double occupations 40 percent of the members are reported with single occupations and about 13 percent of SHGs report that their members are having with more than two occupations. A due analysis of the present status of the group shows that only about 23 percent of all the women led SHGs are well functioning, about 24 percent of these are average, about 32 percent of these are idle groups and 22 percent are nonfunctioning groups. The awareness of the members about SHG activities has been explained and it has been observed that 42 percent of the members are fully aware of SHG programme, 50 percent of them are partly aware and 9 percent of them are non-aware of SHG activities. An explanation as regards to the frequency of holding meetings shows that the percentage of SHGs undertake monthly meetings (31%), quarterly meeting (18%), and weekly (5.33%). Besides, about 23 percent of the SHGs undertake meetings rarely, about 18 percent hold meetings very frequently, 5 percent of them hold meetings whenever required and 8 percent of them never undertake meetings.With regard to the attendance of group members at the meeting points out that 50 percent attendance is reported among maximum number of members, less than 50 percent attendance is reported among 20 percent of the members. 75 percent attendance is reported among 14 percent of the members. Full attendance is reported among || percent of the SHGs studied and just quorum is observed in the case of 16 percent of the respondent SHGs. The different matters which are discussed in the group meeting include functioning of the group in general (10.66%), working of the scheme (4.0%), repayment of loan (7.33%), skill upgradation (10.00%), procurement of raw materials (22.0%), marketing of the produce (1 330 savings (0.66%), future programmes (7.33%), strengthening of the group (4.66%), general discussions (8.00%), An analysis of the type of records maintained by different SHGs shows that passbooks / joint passbooks are maintained by all the SHGs, 94% of the SHGs maintain savings register and about 69 percent of SHGs maintain cash book as well as attendance-cum-minute book. Membership register is maintained by about 34 percent of SHGs. However, minimum number of SHGs about 9 percent of them maintain visiting books and only 8 percent of them maintain loan ledger. In a majority of SHGs. any member of the SHG furnishes the task of record keeping. Persons from the facilitating agency maintain records in 27% of SHGs. Treasurers are responsible to maintain records in 18 percent of SHGs, In about 10 percent of the SHGs group organiser maintains the records. Further hired personnel are used for maintaining the records in about 11 percent of SHGs. A discussion about the selection procedure of group leaders points out that about 34 percent of the SHGs select their group leader democratically. In14. S.. about 19 percent of the SHGs, village leaders nominate group leaders and in about 48 percent of SHGs, group leaders are nominated by SHG promoting agency. An analysis about the level of participation of the group members in-group activities points out that about 58 percent of the members do have partly participation in the group meetings. Fully participation is reported in 26 percent of the SHGs and non-participation is reported in 18 percent of the SHGs. As regards to the procedure of framing policy is concerned, it is found that in maximum number of SHGs (about 35 percent), policies are adopted with the imposition of group leader. Imposition of policy by the sponsoring authority is reported in about 21 percent of SHGs. However, 20 percent of SHGs adopt policies quite democratically with the participation of all members and in about 15 percent of SHGs, policies are adopted with the consent of some influential members. Non-involvement of all the members in the matters relating to policy adoption is noticed in about 7 percent of SHGs. Imposition of policy by the govt. is noticed in 2 percent of SHGs. It is found that 48 percent of the SHGs don’t have proper co-ordination and they do it very much rarely, 30 percent of them do it at regular intervals and 22 percent of them do it periodically. Majority of SHGs about 55 percent collect savings from the group members at monthly intervals and only 2 percent of them collect savings on the basis of daily interval. However, the number of SHGs undertaking savings at weekly intervals (3.33%), quarterly intervals (4.0%), half yearly (2.66%), and yearly (3.33%). Again 8 percent of the SHGs mobilise savings as and when possible. About 15 percent of them never mobilise savings.So far as the prescribed minimum amount of saving is concerned, it is observed that in majority of SHGs about 39 percent, less than Rs. 10/- per member is fixed. 36 percent of the SHGs fix the minimum amount of savings at Rs. 11/- to Rs. 25/-, 5.33% of then fix it at Rs. 26/- to Rs. 50/-, 6.66% of them fix it at Rs. 51/- to Rs 100/- and 12 percent of then fix it at above Rs. 100/-. Higher amount of bank loans have been received by a minimum proportion of SHGs and lower amount of bank loans up to Rs. 5000/- have been obtained by a significantly higher number of SHGs. The average monthly income of the members varies between Rs. 200/- to Rs 1000/-. However, significantly lower numbers of the members are found with an average income above Rs. 1000/- It is found that the smooth functioning of the group immensely influences the sustainability of the group. Besides, the factors like self-confidence of the members, dependence on group resources, discipline among the members, faith in-group leadership and active co-operation of group members also contribute the sustainability of the group. Majorities of SHGs undertake different welfare activities like spread of education, provision of health and hygiene, environmental promotion, health camps, awareness campaigning, eradication of social atrocity and abolition of liquor habits. The socio-economic status of the members undergoes some dramatic changes due to their association with SHG. The different dimensions of socio-economic changes include development of traditional skill, acquiring new skill, increase in the man-days employment, additional income, improvement in the standard of living, better status of women in the family.31 32. The various reasons for the formation of SHG include social factors, economic factors, upgradation of traditional occupation, debt burden, unemployment. leisure utilisation etc. Group entry fee with varying amounts is found in all the SHGs So far as the functioning of different SHGs is concerned, majority of the SHGs are found satisfactory and minimum proportion of SHGs are found with unsatisfactory The different sources towards the compulsory savings comprise of family income. own income. husband’s income. other income in the knowledge of the husband etc About 45 percent of the SHG members studied are found with not availing any loan from their respective SHGs. The loan amount availed by the members varies less than Rs. 1000/- to Rs 4000/- The time gap between the application of loan and sanction of loan varie between 4 days to 60 days. The time gap between sanction of loans and disbursement of loans varic between 5 days to 60 days. About 19 percent of the members make regular repayments and 46 perce of the members make irregular repayments. However, no repayment found with respect to 14 percent of SHGs. The different purposes for which SHG members take loan include undertaking business, household consumption purpose, education children, health expenditure ete. Itis found that except agriculture labour, in all other activities like farmir non-ag. Labour, animal husbandry, collection of MFP, household indust petty trade / business ete, there has been some positive change in income.1 Increased incomes of the members are sometimes utilised for the purchase of some household durable assets like land, ag. Implements, bicycle house, gold, ornaments, radio/watches etc The change in the social aspects of the members is reflected in the changes in the activities like food habit, clothing, housing, education of children, health consciousness. The other changes among the members due to SHG is reflected in the changes in the traditional culture. increased observation of community functions, improvement in the quality of leadership, improved self confidence. generating income independently and skill upgradation. The major problems of the SHGs include lack of co-ordination among group members. passive role of the facilitator. insufficient credit. gradual loss of interest. lack of education. inadequate mobilisation of savings etc. SUGGESTIONS In order to provide better efficiency to SHGs and better prospects to members through SHG means. following suggestions have been recommended. Need for Borrower Education and Motivation The borrowers, more accurately the members of the group who have taken loans they should be adequately educated and motivated for the better utilisation of loan fully. While utilising the loan funds, they should be extra conscious in connection with the purpose of receiving the loan amount and the motto of SHG programme. Regularity in Meeting, Attendance and Participation Regularity in meeting, attendance and participation happen to be the positive indicators for the better viability and strength of the group. Every member should be encouraged for regularly attending the meetings. Attendance in the meeting should adequately be taken care of. Besides,4. e. members should be encouraged to effectively participate in the decision making process of the group. Due importance to training Training promotes efficiency among the group members. Thus, the facilitators should provide training to the SHG members as regards to the better utilisation of funds, identification about the feasibility of a business, account maintaining procedure ete. Improvement in literacy standards It has been found that majority of the members in the group are illiterates Many-a-times illiteracy stands on the way of SHG progress. Due to illiteracy, the members are unable to maintain and verify records, recognise the importance of SHG and feel doubted about the efficiency of SHG for the socio-economic betterment. Thus, the members should be provided with some type of non-formal education for raising their literacy standard. More attention to raise the income of the members The SHPIs along with the functionaries of the respective SHGs should provide adequate attention about all possible behaviour of any members They should ensure proper utilisation of funds by the borrowers. right decision for business, product and marketing. If all these things happen to be positive, then there can be improvement in the level of earning of the individual number. Continuity in Savings It has been observed that few members discontinue their compulsory savings after few months or so. Actually this hampers the progress of SHG. Thus, in each possible way, the members should be encouraged to continue their savings and to remain in the group. Effective leadership10. nN. 12, Effective leadership is highly an essential component for the viability and sustainability of the group. Thus, a litigation free, literate and influential member of the group with high degree of motivational ability should be selected as the group leader. While selecting the group leader, the SHPI with consent of the members should do it very much carefully. Proper co-ordination Actually different SHPIs promote SHGs in a given area as per their own fashion. Thus, duplication of efforts is not uncommon. In order to avoid it there should be coordinating agency at the district level at least, whose primary task would be to allow one SHPI at a given geographical boundary Health Care & Sanitation As the primary objective for the formation of SHG is not only economic upliftment, but also, social progress, thus, the members of the SHG should be provided with due knowledge as regards to health care and sanitation. Development of infrastructure To subscribe a big boost to SHG activities, efforts should be made by the government for strengthening rural infrastructure. Rural infrastructure mainly refers to the development of roads in addition to telecommunication and transport facility. Capacity Building of Women SHGs Leaders from the respective SHGs should be trained on management of groups, leadership, record keeping and other issues through group discussion and PRA learning techniques. To enhance the knowledge and capability of the group leaders from time to time refresher training should be conducted on the aspects like group and fund management, fixation of change of norms, role of the leader and record maintenance The economic viability of the group should be properly estimated by the facilitating agency.For the healthy growth of the SHG, there should be careful and continuous monitoring as to the aspects like maintenance of documents, the decision in the group, the decision making process and the implementation of decision ete.Chapter -JCHAPTER - | INTRODUCTION 11 BACKGROUND Since Independence the notion of participation and development has been teceiving much attention among the policy makers, administrators, academicians and other concerned agencies engaged in development programmes. The focus is mainly on how to imbibe the sprit of self-governance, self-reliance, empowerment, conscientisation, mobilization and organization of the disadvantaged groups for elimination of poverty social inequality and unemployment. The issues related with the formation of Self-Help Groups (SHGs) have gained much momentum, particularly in last two decades. Following the success of Gramin Banks in Bangladesh, many NGOs in India, especially after 1980s have started Self-Help Groups (SHGs) in saving and credit activities among the disadvantaged sections of society. The basic objectives address for the needy and poor people who seck small but urgent loans for consumption, production ete. Further, in their day-to-day life, credit delivery institutions like Banks, Co-operatives etc. fail to fulfil their credit requirements in time due to their rigid institutional practices. Therefore. there has been a growing opinion that the banking system is not geared to cater to the needs of disadvantaged groups. Hence SHG is designed to act as an alternative credit system to cater for urgent credit requirements of common people. 12 SELF-HELP GROUP When a group of poor or disadvantaged people come together on their own (voluntarily) with the clear objectives of bri about a positive change in the situation in which they find themselves in, through self-help and self reliance, such a group is called Self-Help Group (SHG). A saving and credit group is a specialized form of SHG, where the group members agree to form themselves into a group and function in an organized manner with the specificof pooling their savings so as to be able to give credit to its members meeting their consumption and production needs. The main objectives of the are to improve the economic and social status of the members in terms of their needs and interests. While the group activities are multipurpose, they quite ‘often have a special focus on thrift and credit management. Although “unregistered, they function within the framework of an informal set of bylaws framed by the members themselves. These groups are distinct from the existing _ co-operatives where heterogeneity is a common and sometimes a divisive factor. These SHGs usually have 10 members. It is a unique institution where the “members apply their common wisdom and resolve their problems and meet their needs through appropriate participatory decision making ‘13 BASIC FEATURES OF SHGs © Informal Oraganisation SHG is an informal organization of homogeneous groups of people particularly women consisting of members 10-20. © Unregistered Oraganisation SHG remains unregistered on the ground that once it becomes registered immediately it will loose its informal characteristic © Bye-law The bye- law happens to be positive code of conduct for intra-group discipline. © Mutual Help and Self Help ‘The group members are committed for each other. Self-help and mutual help based on group solidarity and co-operation is the maxim of Self-Help Group. © Regular and Compulsory Service The savings made by individual members are compulsory in fixed interval of time as decided in the group. But the amount of savings is always nominal because it is poor women’s club.Decision is always participatory The decisions on different aspects taken in the group are never individual decisions rather consents of every member is always respected. In this process individual member would become confident and feel the fruits of liberty. Democratic Principle “SHG is for the members by the members and of the members”. This democratic principle guides the group. Maintenance of Register The group maintains different type of registers. If all members are illiterates, they take assistance of an outsider. Otherwise they themselves maintain all the registers. Common pass book The SHG maintains a common passbook in the nearby commercial bank. Generally two members nominated by the group members name this accounts and make with drawls as per the consent of all members. MANAGEMENT OF SHGs SHGs are self-managed. However, to make the SHG thorough and fficient, many-a-times an outside agency called Self-Help Promoting Institution ) may be a bank or NGO or local Youth club or any charity club, Anganawadi Centre (AWC), panchayat authorities or any other person cessarily acting as facilitator provides required guidelines towards a better- Besides a president, a secretary and a cashier is selected by the members om among the members. They constitute the chief functionaries of the group. PRINCIPLES FOR THE MANAGEMENT OF SHG Code of Conduct dmission Related + One adult member from one family + Admission fee as fixed by SHG. Fees are not refundable.Membership will not include from the families those involve in party politics, antisocial defaulters. Related Weekly meeting to be conducted Time and place should be fixed All the members should attend the meeting Circular on sitting arrangements Selection of chairperson. Welcome address Treasurer to take attendance Reading and confirmation of previous meeting. Discussion as per Agenda Reading of proceedings of last meeting and confirmation Discussion on absentees Resource mobilisation Loan recoveries Loan sanction/disbursals/utilisation Development programmes Developmental issues Training programmes E Any other issues of importance Participation Related * Equal opportunity to all. Motivation to attend training/seminar and workshop Involvement in savings/community activities. + Should protect unity and co-operation. 4 Should give opportunity to all.Should mobilise, use and manage the resources properly/judiciously. Should work against defaulters Should take leadership responsibility Should take responsibility of planning, implementation, monitoring and evaluation [PMIE]. Executive Committee + Tepresentatives as Executive committee members as Their membership shall be six months or one year They shall be operating group’s bank account. They ensure the remittance of cash balance. They ensure proper maintenance of books of accounts and records. They ensure Planning Monitoring Implementation and Evaluation [PMIE]. They ensure establishment of relationship and co-ordination of other institutions. They exclude agreement with other agencies on behalf of SHGs. ings Related Regular and compulsory basis for all members — (Weekly, fort nightly/monthly basis). Passbook to be given to each member. Policy for the withdrawal of deposits. Using the pooled funds for lending. Keeping the surplus funds in bank account. Policy for the members to adjust deposits towards loan installment not to be encouraged. Collection of savings shall be made by all on rational basis. Remittance of funds to bank account shall be made by all on rotation basis.Safe custody of funds (cash in hand) shall be kept by all on Totation basis. Management Related + Using the pooled funds for lending when the group saves some amount say Rs. 500/- - Rs. 800/- and when regular meetings take place. + Group to decide the procedures before lending. + Loan to members only. + Loan to needy members — Few members not to corner these loans. It is better that loans be given first to poorest members. Loan purposes to be screened by the group. + — Application for loan in simple format. Quick disbursal of loan and that too in the group meeting. ¢ No security. + Interest as decided by the group with reference to the market rate. + Finalise the repayment schedule in the group meetings. + Watch on end use of loan and ensure utilisation of loan for the purpose. + Repayment schedule to be enforced. + Ensure revolution of funds at optimum level. . Ensure equal opportunity to all members. ° Can avail loan from banks and others. Leaving the Group * A member can leave the group. But he has to clear outstanding loan. + He can adjust his deposits towards loan and balance deposits can be taken. * In the event of no loan outstanding he can take back his deposits.+ In case a member wishes to reenter the group, he should bring back all deposits he would have in normal course of his continuing in the group. _ Exclusion ° Group members by unanimous decision, may expel any member of the group who violates the discipline or code of conduct consistently. . In such case he/she shall have to clear all dues and all members shall work for realization of dues. _ FUNDS MANAGEMENT + Savings can be started from the first meeting ° Loan deposit size from the beginning ¢ Increase deposit size in a few months ° Passbooks to every member from the beginning ¢ Transactions to be recorded immediately in the meeting + Regular savings in every meeting * Bank account to be opened after few months + Original records to be kept with the leader of the group/chosen person of the group, but not with the animator/NGOs representatives. + Group money should not lie idle funds to revolve. Ratio of credit disbursement to deposit should be higher. More than 100%. + Accounts to be opened in name of the group. ° No transaction out side the group + Signatories to be rotated ° Minimum cash in hand. * Minimum balance in bank account . NGO/Animator not to keep the funds of groupWOMEN SHGs It is being increasingly realized that the goal of poverty eradication cannot ¢ achieved without the full and active participation of the women in the process ‘lopment. Women led Self-Help Groups (SHGs) as a medium of micro nce is gaining wide acceptance in the efforts to alleviate poverty. In the process of forming the SHGs, mobilizing women for socio-economic is encountering dramatic changes in recent years. Jn the context of empowerment and given the vulnerability and lessness of the individual women in the existing socio-economic setup ; strategies acquire greater relevance. Empowering women contributes to development. Economic progress in any country whether developed or developed could be better achieved through small development. Women mstitute equal share with men in total population of our country. Therefore, omen’s empowerment can’t be ignored while devising various policies for ral socio-economic development. Providing micro credit to the rural women through an organized set up make them empowered and enterprising. Varied experiences in the past few des have suggested that the credit needs of poor women particularly those in unorganized sector have not been addressed adequately by the formal inancial institutions in the country. Though. there exists a vast network of ial institutions for rural credit, the outcome is not encouraging. Many rural feel reluctant to approach the banks or other financial agencies for the usual of credit requirements. Further the benefits of the rural employment 1¢ and rural development programmes are not reaching the ultimate ficiaries. In this backdrop, SHG is a viable alternative to achieve the objectives of development and to get community participation in all rural development es. It has been recognized that SHG is a viable organized set up to micro-credit to the rural women for the purpose of making themerprising and encouraging them to enter into entrepreneurial activities. Further grouping would initiate a learning process through sharing of ideas, and interactive capacity and in course of time women would learn to level. Credit oriented rural women led SHGs have successfully smonstrated how to mobilize and manage thrift, appraise credit needs, maintain ; nkages with the banks and enforce financial self-discipline. In this context, the Government of India is committed to enable poor women in rural and urban areas to have access to economic and social resources there by empower women through a number of women targeted programmes as DWACRA, NABARD’S linkage programme for women SHGs, RMK d Self-Help Group etc. Now a day, a large number of institutions at the or non-Govt. level are involved in the task of promoting SHGs among ig SHG programmes a successful one. WOMEN SHGs IN ORISSA The State of Orissa is considered to be one of the poorest states in India it has the highest proportion of rural people below poverty line. The Sample Survey Organization estimates (1993-94) suggest that this is 49.72% for Orissa as against 37.27% of all India average. The actual of rural people below the poverty line has been estimated as high as 60% jome micro studies. Further, females constitute 49.26% of the state population of 31.66 lakhs. sex ratio standing at 972 is not in favour of female population. Again female lation in the rural Orissa are more vulnerable on the ground of health, tion and economic independence. Apart from that, rural women in parison to urban population are less empowered politically, socially and nomically. In this background, particularly in the last two decades a number women Self-Help Groups have emerged due to the active intervention ofSelf-Help Promoting Institutions mainly NGOs. Now-a-days SHGs e being increasingly considered as a right forum to safeguard the many- sided In recent years, particularly afier 1990s, the concept of SHG has gained ch momentum in the poorer states including Orissa. SHG as a moneylender, development bank, co-operative or as a voluntary organization operating at the While discussing SHGs in Orissa, it is quite essential to describe Self- Help Promoting Institutions (SHPIs) operating in Orissa, These SHPIs are the catalysts in promoting due enthusiasm and encouragement among the SHGs to "be emerged successfully. 18 FUNCTIONING OF DIFFERENT SELF HELP ; PROMOTING INSTITUTIONS IN ORISSA SHPI may be Government, Semi Government Agency. corporation NGO, the branches of commercial Banks, RRBs & Co-operatives or any other charitable organisation. Some of the visible SHPIs working to the cause of the formation of SHGs are discussed as per the following. Different SHPIs and their Operational area are discussed in table 2. TABLE - 2.1 SHPIs AND THEIR OPERATIONAL AREA Self Help Promotion Institutions (SHPIs) Operational Area No DWACRA Replaced by Swamajoyanti Gram | in all districts Sworojgar Yojana(SGSY)] Indira Mahila yojana In selected Six districts. 10Self help Group Linkage Programme of |In all districts. NABARD | Small Industries Development Bank of | In selected districts. | India(SIDBI) | Mahila Sanchayika Sangha (Mass) In Ganjam district. ICDS promoted Mahila Mandal In all districts. Rastriya Mahila Kosh(RMK) In selected districts Nehru Yuva Kendra In selected districts Non-government Organisations In selected districts Vikas Volunteer Vahini club (VVV Club) In selected districts Besides, the above major SHPIs as explained in table 21, there might be t basis in 50 selected districts but has now been extended to all the of the country. The basic objective of the programme is to provide me generating skills and activities to poor women in rural areas, thereby their social and economic status. As per its provision poor women of mbers in rural areas form a group to take up any economic activity nd the net benefits arising from it are shared among them. JWACRA is being implemented by the DRDA. To facilitate the ion of the scheme a post of Assistant Project Officer (APO women) en sanctioned at the block level to look after the activities of the groups. addition to the two-Gram Sevikas in the normal block pattern. The Wand three-Gram Sevikas form a team to help in the implementation of iets of Sambalpur, Sundargarh, Kalahandi and Kendrapara etc. District-wise functioning of DWACRA groups is shown in Annexure — 1.The main objectives the DWACRA scheme is presented as To try and form women’s groups each consisting of 15 to 20 members To improve the social status of the women from rural areas by uniting them and organizing them to develop cottage industries. To give credit to individuals and group members for the successful implementation of the programme. To encourage women to take up income generating activities thereby improving their socio-economic status. To improve the access of rural women to health, education, safe drinking water, sanitation nutrition etc and to bring about an enhancement in the quality of life and general well being of women and children. SOME HIGHLIGHTS ON "DWACRA" OPEATIONS. In Ganjam district as per the initiative of DRDA and involvement of BDOs, few SHG groups have been converted into DWACRA groups. Similarly as per the instance of DRDA (Chatrapur) the CDPOs working at Chatrapur, khallikote. KSnagar, Kukudakhardi, Chikiti, Patrapur, Bhanjanagar, Buguda, Jagannathaprasad have been invoived in the formation of at least 40 SHGs each. ORMAS at the State level, launched a special initiative to market the rural products like consumables items (including rice, Haldi, chilli, Mustard oil. Pickles. Badi, Pampad etc), utility items (coir mats, sisalmats, golden grass mats, wooden telephone mats etc), Office stationary (bamboo waste box, Paper weights, wooden/bamboo pen stands), minor forest products 12like Jhuna, Palua, Lac etc. through different Bhanja Prabha outlets «| Orissa. As per the instructions of DRDA, few DWACRA groups have been registered during 1998-99 onwards. The objective is to get group financial assistance from the banks. DWACRA is replaced by Swarnajayanti Gramya Swarojgar Yojana. WARNA JAYANTI GRAMYA SWAROJGAR YOJANA Swarnajayanti Gramya Swarojgar Yojana (SGSY) an alternative to lusive objective of establishing a large number of micro enterprises in the al area as building upon the potential of the rural poor. Funds required under SGSY is conceived as a holistic programme of micro enterprises covering all aspects of self employment, viz. organisation of the rural poor into self help groups and their capacity building planning activity clusters, infrastructure build up. technology. credit and marketing. SGSY lays emphasis on activity clusters, 4-5 key activities will be identified for each block based on the occupational skill of the people and availability of markets SGSY lays emphasis on activity clusters, 4 - 5 key activities will be identified for each block based on the resources, occupational skills of the people and availability of markets. Selection of key activities will be with the approval of the Panchyat Samities at the block level and the District Rural Development Agency (DRDA)/Zila Parisad (ZP) at the district level.SGSY focuses on Group approach. This would involve organisation of poor into SGSY and their capacity building efforts would be made to involve women members in each SHG. SGSY is a credit cum - subsidy programme. Credit appears to be the _ ¢titical component in SGSY, subsidy being only an enabling component. SGSY promotes multiple credit rather than a one — time credit injection. __ Special emphasis is laid on skill development of the swarojgaries through well designed training courses. At present SGSY is in vogue in all the districts of the state. A district wise of SHGs for micro enterprises under SGSY is furnished in Annexure — II. INDIRA MAHILA YOJANA IN SHG Indira Mahila Yojana (IMY) for the holistic empowerment of women, jally launched in 200 selected blocks of the country on 20" August 1995 he Govt. of India. The IMY seeks to achieve the following objectives like To generate awareness among women by disseminating information and knowledge so as to bring an attitudinal change. To help women achieve economic strength through micro level income generation activities. i : z ; To establish convergence of various services such as literacy, health, non- formal education, rural development. water supply. entrepreneur-ship etc. The Indira Mahila Yojana (IMY) as a centrally sponsored scheme aims at ating and integrating sectoral programmes relevant to women like health, ation, water sanitation. housing at the local block and district level and easing their awareness and income through group activities and participation h the aim of empowering women. IMY successfully works in 6 districts of the state with the involvement of A district-wise list of working of IMY alongwith the names of NGOs therein and the number of SHGs formed under this scheme is din Annexure — IIT.SHG LINKAGE PROGRAMME OF NATIONAL BANK OF AGRICULTURE AND RURAL DEVELOPMENT (NABARD) IN ORISSA _ NABARD being an apex level financial institution occupies a unique with a mandate to promote integrated rural development. Since February 92 it has successfully developed and operationalised the concept of linking with banks as a supplementary mechanism of saving and credit where a number of NGOs and Banks are participating, In addition, NABARD also s Various other credit dealing innovations that are being experimented in parts of the country, such as: “Gramin Bank” replication, NGO SHG federation, credit Unions etc. NABARD launched a pilot in February 1992 for linking 500 SHGs with Banks. The objectives of me include aging banking. thrift and credit among the rural masses. Evolving supplementary credit storage for meeting the credit needs of the Building mutual trust between the bankers and rural poor. RBI institutionalized the SHG linkage programme in April 1996 as a (lending activity of the banks under priority sector and service area 2 h. Thus. the pilot project became a mainline activity and entered the sion phase in 1996. has been substantial progress in linking SHGs with banks over the ng from a modest number of 255 groups linked by March 1993, the number of SHGs linked by March, 1998 stood at 14317, with the ent of 2500 branches of 150 banks through 291 NGOs in 19 states and Territories and by March, 2000 this cumulative number of SHGs ularly increased to 1. 13. 263. 15_ COVERAGE IN THE STATE OF ORISSA The number of groups formed in the state of Orissa under the SHG age programme till March, 2000 is 4039. A district-wise list of the no of 38 coming under SHG linkage programme is furnished in Annexure — IV. _ SHG MODEL ‘Under NABARD SHG linkage programme, the following types of models |. The change in process under each model is stated as per the =i ‘The bank is providing credit in bulk directly to the group which may be or formal (i, ¢. registered body). The group in turn is undertaking on ig to its members on terms agreed upon mutually among them-selves. The tum of credit given to the group should be in proportion to the savings d by the group. savings credit ratio varying from 1: 2 to 1: 3 in the study EL —2 Tf the bank does not have adequate trust and faith on a particular SHG. hrough NGOs credit is entered into the SHGs, -3 “In this type of model, provisions are there that individual members having it requirements can receive micro- credit from the linked bank directly eto the consent of the concerned SHG. INNOVATIVE STEPS UNDERTAKEN BY NABARD IN ORISSA As per direct assistance and supervision of NABARD. a ‘Centre for Finance’ has been formed at XIMB, Bhubaneswar. The main objective of is to provide training and other guidelines to the SHGs, members of . different NGOs, banks and other agencies who are involved in the of forming SHGs.NABARD has arranged all “encouragement to the RRBs operating in the district of Bolangir, Dhenkanal, Kalahandi and Koraput. It has made its special target of forming at least 5000 SHGs in the _ backward KBK districts of the state. - Ithas facilitated Vikas Volunter Vahini (vvv) clubs at the grassroot level. SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA _ (SIDBI) AS A SELF HELP PROMOTING INSTITUTION ‘Small Industries Development Bank of India (SIDBI) introduced the Credit Scheme (MCS) in 1994. Assistance is extended under this through 125 pilot accredited NGOs covering over 1, 23, 000 poor types of technical assistance and n members, yielded satisfactory results. This has encouraged SIDBI to challenge by taking proactive steps to enhance the flow of institutional to this sector. Keeping in view the tremendous potential of reaching out to of rural entrepreneurs. a further impetus in development of micro-credit ssential at this stage. With this background, SIDBI launched a Rs. 100 crores SIDBI D for Micro Credit (SMFL) in November 1998. The SIDBI foundation ild also focus on encouraging micro finance product innovations. _ The renewed approach focuses on identifying major (nodal) Micro Institutions (MFIs) as long term partners and providing credit support ‘it micro-finance initiatives. These MFIs, which inter-alia includes NGOs community based organisations, which are selected on the basis of their y, track record. professional expertise. management practices and anizal ional capabilities, growth potential etc. _ SIDBI foundation would simultaneously help these MFIs by way of need- loans and grants to strengthen the management capabilities. They will act strong intermediaries in the informal credit segments. 7DISTRICT ADMINISTRATION In some districts of the state, the district administration is playing an ortant role in promoting women Self-Help Groups. Mahila Sanchayika (MASS), a federation of SHGs introduced by the district administration anjam is a pioneering attempt in this regard. Regional Rural Banks (RRBs) As per the provision of Bank linkage Scheme of the SHGs, very recently RRBs have started promoting the SHGs, since 1995-96, NGOs as Self Help Promoting Institution Non Governmental Organizations (NGOs) operating in the state are asingly found in promoting and organizing Self-Help Groups in the state. Recently NGOs have been identified as the best promotional agency as have long experience in working with the local people. The success stories reveal their contribution towards nurturing and making the groups elf-reliant. NGOs under the guidance of NABARD have promoted groups, many of which have reached a self-reliant stage. It needs to be highlighted that groups remain apolitical. effectively responding to the needs of the community without actually becoming bureaucratic. As these are more heterogeneous and scattered therefore. it is found ficult to provide a detailed list of all NGOs working in the state. However, as the chief facilitators for the concemed SHGs, their activities include. Attending every meeting initially for about a month. Not to interfere in- group decisions. Teaching the group about standard practices. Ensuring the decisions are promptly taken. Assistii ‘0 maintain proper records. Ensuring that involvement of the group in any scheme is thoroughly discussed by the group. Encouraging every member to share views in the meeting. 18