Financial Inclusion White Paper - NCR

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2.1.2. Rural India About 70 percent of the population (770 million people) lives in villages, a fraction lower as compared to the post independence (in 1947) figure of 75 percent. The vast majority of this group – a full 65 percent of the population – is employed in agriculture. For financial inclusion policy makers, this fact emphasizes the importance of financial facilities being made available to the unorganised primary sector, particularly agriculture and agro-based industries. Small investments such as seeds, fertilizers, pesticides create demand for microcredit for small and medium sized farmer households. Non-farming household’s dependent on unskilled activities, including landless labour, construction workers and farm product processing workers, are also underserved by formal sources of finance due to low income. “The Report of the Committee on Financial Inclusion” (January 2008) stated that 72.7 percent of India’s 89.3 million farmer households are excluded from formal sources of finance. Case Study 2S2: Institute of Integrated Resource Management (IIRM) Rural socio-economic support for north-eastern states IIRM was set up by Dhattateya Hoshagrar, a native of Karnataka, after experiencing the difficulties faced by the poor in north-eastern states in accessing essential financial services. IIRM took a traditional development approach of relationship-building in each village to navigate through the region’s communities. This approach was instrumental in successfully implementing the microfinance project and providing socio-economic support to rural and urban poor communities. IIRM currently serves nearly 8,000 clients and has a target to reach out to 157,000 by 2010. With an average loan size of US$80, IIRM serves farmers, tea plantation workers, and small-scale entrepreneurs. Borrowers use tailored loan programs to expand their businesses and redirect extra income towards education, healthcare, and housing facilities for their families. Currently a nongovernmental organization (NGO), IIRM plans to evolve into a non-banking financial company (NBFC) 13
Chart 2.b: India’s Regional Split: Financial Exclusion North Eastern States Eastern States Central States Northern States Southern States Western States Regional Split of Farmer Households: Financially Excluded from Formal source of Finance 57.25% 56.02% 81.26% 77.59% 74.95% 95.91% 0% 20% 40% 60% 80% 100% Western states: Maharashtra, Goa, Gujarat Southern states: Karnataka, Andhra Pradesh, Tamil Nadu, Kerala Central States: Madhya Pradesh, Uttar Pradesh, Uttarakhand, Chhattisgarh Northern States: Jammu & Kashmir, Himachal Pradesh, Punjab, Haryana, Rajasthan Eastern States: Bihar, West Bengal, Orissa, Jharkhand North Eastern states: Sikkim, Assam, Arunachal Pradesh, Manipur, Meghalaya, Tripura, Mizoram, Nagaland Source: “The Report of the Committee on Financial Inclusion”, January 2008 14
Page 1 and 2: Do you want to implement a scalable
Page 3 and 4: Acknowledgement Frost & Sullivan is
Page 5 and 6: Table of Contents 1. Introduction t
Page 7 and 8: 1. Introduction to Financial Inclus
Page 9 and 10: Brazil Brazil’s government has ur
Page 11 and 12: 2. India’s Socio-Economic Landsca
Page 13: Case Study 2S1: Swadhaar Microfinan
Page 17 and 18: 2.3 Underbanked bankable population
Page 19 and 20: 4. Financial Inclusion Lifecycle Th
Page 21 and 22: 5. A Feasible Solution for Financia
Page 23 and 24: 5.1.3 Kisan Credit Cards (KCC) The
Page 25 and 26: 5.2 Technology Solutions Technology
Page 27 and 28: Self-service technologies offer pro
Page 29 and 30: Case Study 5S1: M-PESA, Kenya Provi
Page 31 and 32: a customer through the entire trans
Page 33 and 34: 2) Audio-Video lead through Use of
Page 35 and 36: 5.3 Multi Channel Delivery Models 5
Page 37 and 38: 5.3.2 Independent and Shared Access
Page 39 and 40: Case Study 5S4: Mzansi, South Afric
Page 41 and 42: 6. Conclusions India is a country o
Page 43 and 44: Measurement System Appendix A criti
Page 45 and 46: Policy Template Nature Impact Time
Page 47 and 48: 2.2 Measuring the impact of Micro D

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