See full case study - Governance in India

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See full case study - Governance in India

Thursday, 16 November 200614:15 - 15:00 Claims: their function and their form• one-part / two-part form• general types• special types• first and second medical use• disclaimer Ms Karin PrambergerEuropean Patent Attorney15:00 - 15:30 Points relating specifically to Serbia:• legislation• structure of claims• other topics suggested by IPO Ms Olivera DjenovićSenior patent examiner, Chemistry department, Patent sector15:30 - 16:00 Testing the validity of claims:• clarity• basis• problem-solution approach• unity of invention Ms Karin PrambergerEuropean Patent Attorney16:00 - 16:15 Coffee break16:15 - 16:45 Practical exercises on the validity of claims Mr David HarrisonEuropean Patent Attorney16:45 -17:00 Open discussion – End of the fist dayLanguage:English – interpreters available


Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public GrievancesMinistry of Personnel, Public Grievances and PensionsGovernment of IndiaCase StudyWomen EmpowermentFinancial Inclusion through Micro PensionTRANSPARENCY AND ACCOUNTABILITYMarch 2011financial services, the bank gradually expanded its activities to include housing loans,insurance and pensions to women employed in unorganised sector. Prior to 2006, SEWA Bankused to offer direct pension scheme but the government regulations restricted the plan’s termperiod to 10 years. Since the maturity period of plan was too short to offer any substantialreturns for retirements, it was decided to be discontinued. However, in 2006, when governmentgave its approval, SEWA Bank introduced a new Micro Pension Plan. This plan was designedby SEWA Bank in partnership with UTI-AMC, who act as pension fund managers for thisscheme. At present, any women, between the age of 18 and 55, having a savings account withSEWA, can enroll herself in the scheme.Despite the difficulties in promoting the scheme among poor, informal sector workers, thescheme has attracted more than 60,000 women in Ahmedabad in five years of existence. Theforemost challenge in enrolling women in this program is lack of awareness regardingretirement plans. SEWA Bank is currently promoting the initiative by;• organizing class-room trainings to inform women on importance of savings,• screening films to discuss the subject• organizing large group meetings or Sanmelans• organizing financial campsOBJECTIVESEWA Bank, part of the larger Self Employed Women’s Association movement, aims “to reachto the maximum number of poor women workers engaged in the unorganised sector andprovide them with suitable financial services for their socio-economic empowerment and selfdevelopmentthrough their own management, and ownership.” As part of their mission, thebank has always introduced programmes that enable women to improve their overall economicstatus. This micro-pension scheme was also designed to fulfil the mission of introducingappropriate financial services to the poor women. Hence, the objective of the programme is tooffer a secure future to women from vulnerable groups by:• offering micro-pension scheme• educating women on importance of financial savings3Researched and documented byOneWorld Foundation India


Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public GrievancesMinistry of Personnel, Public Grievances and PensionsGovernment of IndiaCase StudyWomen EmpowermentFinancial Inclusion through Micro PensionTRANSPARENCY AND ACCOUNTABILITYMarch 2011Monthly ContributionWhen a person decides to enrol in the programme, he or she has the choice of selecting hermonthly contribution. The minimum contribution is Rs. 50 monthly or Rs. 500 yearly butindividuals have the choice of contributing more in multiples of Rs. 50. For instance, thecontributions can be Rs. 100, Rs. 150 or Rs. 250. In the usual UTI Micro Pension scheme, themonthly contribution was about Rs. 200 but because of irregular income flow of theunorganized sector workers, UTI decided to lower its monthly contribution from usual Rs. 200to Rs. 50.Internal Process: SEWA Bank and UTI-AMCInternal process between SEWA Bank and UTI-AMC involves facilitation of funds fromcustomer to individual mutual funds. This happens bi-monthly through issuance of cheque fora cumulative amount to UTI AMC. A well-structured general ledger is maintained to indicatethe exact amount of money to be transferred to individual pension funds, and this informationis shared with UTI when sending the cheque. UTI, in return, generates a quarterly investmentreport to inform the customer about the total returns on investments. These reports thoughissued to customers, are verbally translated into simpler terms by SEWA Bank to assistscustomers in understanding their returns.Otherwise, customers perceive this report assomething that needs to be fulfilled as part of the process.5Researched and documented byOneWorld Foundation India


Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public GrievancesMinistry of Personnel, Public Grievances and PensionsGovernment of IndiaCase StudyWomen EmpowermentFinancial Inclusion through Micro PensionTRANSPARENCY AND ACCOUNTABILITYMarch 2011SEWA Bank opens the pensionaccount, fills the UTI-AMC formCollects the monthly contribution andtransfers the amount to UTI-AMCUTI-AMCopens andmanages thepension fundDisburses the pension on maturity ofthe accountTypical Transaction ProcessPension Cash flowUpon attaining the age of 58,a member has the option of either taking the entire amount or optto receive periodic payments through Bank. The amount of monthly pension to be receiveddepends on the total amount accumulated in the funds, as well as need of the member. Forexample, if a retirement fund has total of Rs. 50,000 and the member expects to receive 1000 permonth. Then, UTI will transfer Rs. 1000 to members account in SEWA Bank and then, reinvestthe Rs. 49,000. There is no set amount for monthly pension and it is entirely dependent on theamount contributed by the member.Since this scheme acts as saving funds, there is also an option of withdrawing funds at anytime, if the member requires. This is the biggest challenge faced by SEWA Bank. SEWA Bank’sclients belong to group that prioritises their present concerns to future security. For them, it isimportant to protect their present than worry about future. Therefore, if there is any need forwhich they want money immediately, they prefer taking out money from their pension schemeinstead of taking loan from somewhere else. They argue that the contribution made to thepension scheme is their own, and if they have the money, then why should they take loan fromother sources.6Researched and documented byOneWorld Foundation India


Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public GrievancesMinistry of Personnel, Public Grievances and PensionsGovernment of IndiaCase StudyWomen EmpowermentFinancial Inclusion through Micro PensionTRANSPARENCY AND ACCOUNTABILITYMarch 2011METHODOLOGYThis initiative was identified as a best practice by the Governance Knowledge Centre researchteam because of its innovativeness in designing social security scheme for informal workers.The programme has successfully encouraged women to participate in the program. Although ithas been argued that the programme has not been able to upscale the programme much, GKCresearchers believe that the model can be replicated and is financially viable. If it isinstitutionalised by the government, it might encourage more people to participate.To develop this case study, researchers applied secondary research methods to gatherbackground information about the micro-pension scheme. SEWA Bank and UTI website werereferred extensively to understand the programme design. Further, based on secondaryinformation, ion, a questionnaire was developed to conduct a telephonic interview with MicroPension Scheme’s Coordinator at SEWA Bank on March 18, 2011.Key Stakeholders• Sri Mahila SEWA Sahakari Bank• UTI AMCLESSONS LEARNEDThe major accomplishment of this programme is that it makes pension accessible to not onlyunorganised sector of the economy but also targets women specifically. It was a challenge forSEWA Bank to attract women to enrol in the programme because of lack of financial resourcesand awareness. Therefore, the efforts of the bank were therefore channelled towards addressingthese issues to make the programme more successful. Based on SEWA Bank’s experiencefollowing success factors can be identified for increasing ing financial inclusion:Need Based SolutionAs mentioned previously, for women employed in unorganised sector, it is impossible to eventhink of future savings when they have to struggle to make their daily ends meet. Thesewomen are often engaged in jobs such as making beedis, weaving/embroidery, sellingvegetables or are domestic helps, and do not have a guaranteed source of income. Theiraverage monthly salary is nearly Rs. 3000 and in such case, to contribute certain percentage topension scheme was unthinkable. Since SEWA was familiar with concerns of these women,they decided to introduce a feasible and flexible plan to introduce old age financial securitymeasures to women by keeping the monthly payment minimum.7Researched and documented byOneWorld Foundation India


Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public GrievancesMinistry of Personnel, Public Grievances and PensionsGovernment of IndiaCase StudyWomen EmpowermentFinancial Inclusion through Micro PensionTRANSPARENCY AND ACCOUNTABILITYMarch 2011In the past five years the scheme has become more inclusive. It is understandable that five yearsis still limited amount of time to assess the overall impact on the lives of people; especiallybecause many of the people have not yet reached their retirement age. But this program offers aunique approach to expand social security benefits to unorganized sector.Spreading AwarenessIn a country where there is lack of financial awareness among vulnerable community, SEWA’spension scheme has introduced women to a plan that can help in securing their future. SEWABank has been able to achieve its aim by proactively organising pension and financial literacycamps to increase awareness of financial products. At these camps, the bank showsdocumentaries, movies and interviews to inform women about the need and channels offinancially secured future. Between January and March 2011, the bank organised 15 camps inAhmedabad, Sanand, and Gandhinagar area with at least 300-350350 women in attendance in eachcamp. There are also small camp of 10-15 women periodically organised in bank premises.Research was carried out by the OneWorld Foundation, Governance Knowledge Centre (GKC) team.For further information, please contact Naimur Rahman, Director, OWFI at owsa@oneworld.netAPPENDIX A: INTERVIEWQUESTIONNAIRE1. From our understanding, it seems that the SEWA micro-pension scheme in India wasallowed only after the introduction of New Pension Policy by the government. Is thistrue?a. If no, then why was this not introduced in India prior to 2005? What was themotivation tion behind introducing this programme now? What did the NewPension Policy change to allow for this new scheme?b. Can you tell us about the micro pension scenario prior to the policy change?2. SEWA Bank has introduced this pension scheme in partnership with UTI-AMC. But it isalso mentioned that the programme is part of SEBI’s pension plan. Can you pleaseclarify the roles and responsibilities of SEWA Bank, UTI-AMC and SEBI?8Researched and documented byOneWorld Foundation India


Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public GrievancesMinistry of Personnel, Public Grievances and PensionsGovernment of IndiaCase StudyWomen EmpowermentFinancial Inclusion through Micro PensionTRANSPARENCY AND ACCOUNTABILITYMarch 2011a. Are there any other stakeholders apart from the SEWA, UTI-AMC and SEBI? Ifyes, what are their roles and responsibilities?3. In terms of geographic scope, is this pension plan limited to women in urban areas ofGujarat? If no, then what are the operational areas of the programme? If yes, why startwith this segment of the population and are there plans for expansion?4. Are there any other eligibility requirements to be a member of SEWA Bank besidesbeing between the ages of 18 and 55? Specifically, in terms of financial soundness of theindividual? If so, does this limit the membership to a certain sector of society?5. Members are given a quarterly report on status of their investment fund. Are womenable to understand the complexities of returns on their investments? How? (i.e. istraining given? If so, please explain the training procedures.) What’s their perception ofthese periodic reports? (i.e. do they find them beneficial?)6. Members seem to have the option of withdrawing funds at any time. Do women usuallywait until retirement age?a. If yes, then how does the pension actually work?b. If no, then what are some of the most common reasons for withdrawals?7. In terms of SEWA’s role in this initiative, how challenging it is to encourage women tobe part of this scheme? What have been some of the other major challenges? Why has itbeen difficult to make it inclusive?8. Is micro-pension a profitable venture for a financial institution in India? If yes, how. Ifno, why?Can you share any data to reflect the current impact of the prog9Researched and documented byOneWorld Foundation India

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