Digitisation of Self Help Groups

Transcription

1 Digitisation of Self Help Groups We move with the dream of Digital India ~ Hon'ble Prime Minister Digitisation is all about Bridging the gap of opportunity between where you stand now and where you want to reach in the times to come. NABARD's pilot for Digitisation of SHGs EShakti in tune with Government of India's mission of creating Digital India. NABARD

2 About EShakti The project aims at digitisation of all the SHG accounts to bring SHG members under the fold of Financial Inclusion thereby helping them access wider range of financial services together with increasing the bankers' comfort in credit appraisal and linkage Stakeholders NABARD, SHGs, Self Help Promoting Institutions (SHPIs), Non-Governmental Organisations (NGOs), Banks, Government Agencies like SLRMs, NRLM etc. At a later stage, Credit Information Companies may also be brought on board. Attributes e-book keeping for the SHGs Regular updates for transactional data Reports generated in the formats as required by bankers Inbuilt automatic grading of SHGs based on NABARD/IBA(for NRLM) norms Auto generation of Loan application for the bankers on input of resolution to borrow by SHG.

3 The USP of EShakti software is 'one-click' availability of social and financial information of all the members of the Self Help Groups. Process The project has a dedicated website in which information of all the SHGs is uploaded through 'apps' on android Mobile/Tablet. Data authenticity is ensured through SMS alerts to members and sample audits. MIS reports on groups are generated and progress is tracked on a real time basis. Overall, the whole ecosystem was designed to address the complex issue related to patchy financial records of SHGs. Capture Master data (Social & financial) Regular updates with Mobile App SMS alerts to members & hosting of data MIS Generation for Banks & others stakeholders Project- Phases I and II EShakti Phase I was rolled out during the year 2015 in Ramgarh (Jharkhand) and Dhule (Maharashtra) districts. Encouraged by the positive response from stakeholders in Phase I, the project was expanded to 23 more districts, in Phase II, across the country viz., Nalbari (Assam), Muzaffarpur (Bihar), Rajnandgaon (Chhattisgarh), Mehsana (Gujarat), Mandi (HP), Ambala (Haryana), Udhampur (J&K), Mysuru (Karnataka), Kasaragod (Kerala), Indore (MP), Wardha (Maharashtra), West Garo Hills (Meghalaya), Jagatsinghpur (Odisha), Bikaner (Rajasthan), Jhalawar (Rajasthan), West Tripura (Tripura), Barabanki (UP), Varanasi (UP), Dehradun (Uttarakhand), West Medinapur (West Bengal), Hazaribagh (Jharkhand) and two districts in UT of Puducherry.

4 Growth in credit linkage due to project EShakti # SHGs (before) # SHGs (after) Credit Amt (before) Credit Amt (after) SHG unit in number and amount in lakh Ramgarh Dhule Impact Provided credit to SHGs based on real time performance Significantly reduced Saving-Credit linkage gap Captured credit history of members Promoted transparency through real time SMS alerts in 10 languages to members Aided convergence of SHGs with other Government Programmes Integrated members with the larger Financial Inclusion Agenda. Results have proved beyond doubt that technology if customised well, using local language, will be whole heartedly welcomed and adopted by the rural poor. The digitally enabled SHGs have effortlessly catapulted to the next orbit of credit linkage from Banks. The project now covers 1.30 lakh SHGs. It also has demonstrated its potential to rejuvenate the Self Help Group movement. It has led to: 1 Increased awareness levels of banks about functioning of SHGs, through the MIS generated from the system, has resulted in large scale first as well as subsequent linkages for many SHGs and also credit deepening in some of them. 2 Real time SMS alerts brought transparency to the operations / transactions and boosted confidence among the SHG members. 3 The software has valuable data of about 15 lakh rural poor in 25 districts.

5 (On EShakti portal as on ) Particulars Villages covered Groups covered Groups credit linked Members covered Women covered Members with Aadhaar Members having mobile phones Participating banks Partner SHPIs Number 19, Lakhs 63,700 14,94,300 14,62,600(98%) 12,07,700(81%) 5,15,800(35%) Way Forward Phase III Growth is a spiral process, doubling back on itself, reassessing and regrouping Tremendous response during pilot phases has encouraged us to consider expanding the project to 175 more districts across the country (taking the total districts covered since inception to 200), comprising around lakh SHGs with an expected coverage of an estimated 2 crore SHG members over a period of 3 years. EShakti is poised to generate immense business potential for banks in the next 4 years post the completion of this project. At present business volume of SHG in India is pegged at around `1.00 lakh crore. Post EShakti implementation (pan India), this volume is estimated to grow 2.5 times more than the natural growth projection (sans digitisation), thus necessitating EShakti intervention in the ecosystem as part of rejuvenating the SHG-Bank Linkage Programme space. The greatest thing in this world is not so much where we stand as in what direction we are moving

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7 Paving way for Credit Linkage Bank branches to access the portal through Intranet or web link using their branch IFSC and password. About 31 MIS reports like Savings, meeting, Credit linkage, Repayment and Demand Collection Balance can be generated sitting in the Bank branch itself. Easier processing of loan using EShakti system generated prefilled application forms with all the members and group information.

8 Designed & Printed at : IMAGE IMPRESSION NABARD National Bank for Agriculture and Rural Development Head Office : C-24, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai , India. Tel. : Fax : mcid@nabard.org Website :