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Poorest States Inclusive Growth Programme (PSIG)
(Financial Inclusion and Women Empowerment)

ACCESS-ASSIST, a specialised affiliate of ACCESS Development Services (ADS) is a consortium partner responsible for implementing certain components of Output I- Policy Advocacy initiatives under the programme.

Policy Advocacy Initiatives: National & State Events, Studies and Researches.

(a) National Think Tank

About National Think Tank
Under the project, a National Think Tank (NTT) has been set up, which is an advisory group of experienced personnel from the sector. The NTT comprises of eminent experts from the microfinance/ development sector which meet every quarter and provides strategic advice on the financial inclusion policy agenda under the PSIG project. The key mandate of NTT is to focus on the policy issues pertaining to micro finance sector and to communicate as a collective group with the various institutions/stakeholders involved in policy making at national level such as Reserve Bank of India, Govt. of India, IRDA, PFRDA etc. The NTT also provides policy and strategic guidance to other initiatives under the programme from time to time. 8 meetings of the Think Tank have been held so far.
The purpose of setting up the think tank was primarily to:
  • Providing strategic advice on the financial inclusion policy agenda of the programme
  • Networking with and influencing the institutions involved in policy making (such as RBI, IRDA, PFRDA, NABARD) through meetings, written recommendations and memos
  • Guiding state level co-ordination committees on the policy
  • Participation in policy debates, writing newspaper articles, web based communication and
  • Providing policy and strategy guidance for implementation of the policy output as well as other outputs of the PSIG programme.
List of National Think Tank members
Sr. No. Name Designation
1. Shri Brij Mohan  Sector Expert, (Former Executive Director, SIDBI)
2. Shri Vijay Mahajan   Founder and CEO, BASIX Social Enterprise Group
3. Smt Nupur Mitra Chairman and Executive Trustee, SASF, IDBI Bank (Former CMD, Dena Bank)
4. Ms Jennifer Isern Business Line Leader, Access to Finance Advisory, South Asia, IFC
5. Shri SKV Srinivasan Executive Director , IDBI Bank
6. Shri N Srinivasan  Sector Expert and Consultant
7. Dr. (Ms) Joy Deshmukh Ranadive  Global Head, Corporate Social Responsibility - Tata Consultancy Services
8. CEO, MFIN CEO, MFIN, New Delhi
9. Smt Usha Ananthasubramanian  Chairman and MD, Bhartiya Mahila Bank
10. Shri P. Satish Executive Director, Sa-Dhan
11. Shri Anand Srivastava Banking Correspondent Federation Of India
12. Jiji Mammen CEO, MUDRA Bank
13. Shri Tamal Bandhopadhya Columnist with MiNT
14. Smt Sudha Kothari Chaitanya, Pioneers of SHG in India
15. Shri Ram Rastogi Product Innovation Head, National Payments Corporation of India (NPCI)

(b) National Events & conferences

(i) Roundtable on Fund flow from Banks to the Microfinance sector: Issues, Challenges and way forward in June 2012 <attachment>
  The event co-organized with Indian Institute of Banking and Finance (IIBF) was an attempt towards apprising banks of the compliance status of MFIs to both RBI guidelines and industry code of conduct while making an effort to understand and unpack the concerns and risk perceptions of banks. Various strategies to facilitate favorable perception by banks towards the current working of MFIs were also discussed. The event witnessed participation from various stakeholders of the sector viz, large MFIs, Private/ Public Sector Banks, NABARD etc.
(ii) Workshop on Risk and Mitigants in Microfinance Lending- consultation with Banks in April 2013 <attachment>
  The meeting was organized to discuss challenges and redressal in lending to the MFIs. The theme of the workshop was Risks and Mitigants in the Microfinance Lending and discussions majorly revolved around the views of banks on the reasons for significantly reduced levels of lending post the AP crisis. One of the important take-away from the meeting was the need of moving on to supporting more number of MFIs so that bank funding shifts from financing high growth rates of few MFIs to supporting responsible growth of more number of MFIs.
(iii) Banking Structure in India – The Way Forward’: Policy Roundtable on “Small Finance Banks: Pathways to Financial Inclusion?” in September 2013

National Events Sep 2013

Response to RBI October 2013
  On the backdrop of the Reserve Bank of India releasing a discussion paper on its website, viz. ‘Banking Structure in India – The Way Forward’ and the paper written by Shri Vijay Mahajan on “Call for an Inclusive Banking Structure for India by 2019, Fifty Years after Bank Nationalization”, Think Tank member a policy consultation was organized, which was attended by banking and microfinance sector representatives i.e. RBI, SIDBI, NABARD, LAB, IIBF, MFIs, MFI network (MFIN), rating agencies (M-CRIL), investors, donors. The important issues discussed in the consultation pertained to the contribution made by small local banks visa-vis the large banks in catering to the unbanked and under banked regions of the country, tiers of the banks, the extent of financial inclusion in India and the possible role that could be played by Small Finance Banks in attaining the agenda of financial inclusion. The workshop recommendations were forwarded to RBI.
(iv) Discussion on Micro Insurance, New Delhi, October 18, 2013 <attachment>
  Based on the suggestions from the National Think Tank for PSIG, a meeting was organized with the Think Tank members, DFID, SIDBI, GIZ, LIC & other private insurance players and MFIs to understand the key issues and challenges in advancing the Financial Inclusion agenda by expansion of other non-financial services. The forum deliberated on the State of the Micro insurance sector and the key challenges being faced by the industry. Viewpoints of different players- Risk carriers, Aggregators and enablers were sought. Since, expansion of non-credit financial services is one of the key mandates under the PSIG programme, accordingly, the idea was to understand and bring out the key issues which can be addressed through the programme.
(v) Roundtable on Recommendations on Draft RBI Guidelines for Licensing of “Small Finance Banks” and “Payment Banks”, Mumbai on July 22, 2014 & August 20, 2014 respectively

Small Finance Banks

Payment Banks
  As part of the policy agenda of the PSIG programme, efforts have been made towards advocating for setting up of specialized/differentiated banks for enhancing financial inclusion. In the backdrop of the draft guidelines released on licensing of Payment Banks & Small Finance Banks on July 17th 2014, roundtables were organized to deliberate and seek feedback from various stakeholders. The roundtables were attended by RBI, SIDBI, DFID, IIBF, MFIN, M-CRIL various Banks, consultants and MFIs. The recommendations arising out of both the roundtables were forwarded to RBI thereafter.
(vi) Roundtable on Issues on Credit Data Reporting, December 08, 2014, New Delhi <attachment>
  Roundtable on "Issues in Credit Data Reporting in Microfinance" was organized by PSIG, on the Inaugural Day of Inclusive India Summit (December 08, 2014) at New Delhi. The event was participated by Banks (PSU banks, private banks, RRBs and Cooperative banks), Microfinance Institutions, SHG promoting institutions, BCs and BCNMs, Credit Bureau, Technical agencies, IFC and other organisations. The credit bureau HighMark presented its insights of the study conducted for analyzing the potential, scope and coverage for microfinance in the four PSIG states, riskiness with respect to over indebtedness/ over leveraging of borrowers and its effect on the repayment, growing ticket size of MFI loan, exit of borrowers, level of penetration of microfinance at district/ taluk level and other alternative channels in access to finance. Further the scope of covering SHGs under credit data reporting, sharing of members data of SHGs, challenges and issues in SHG data reporting by banks and SHPIs and steps, and support needed to address these issues were deliberated at length with a few recommendations. State Events & Conferences
(vii) (iv) Roundtable on the MFI Bill Policy, February 24, 2015, Mumbai <attachment>
  Regulation for microfinance in India has been a long standing priority and despite several efforts over in the last twenty years, the MFI sector does not have a comprehensive regulation covering all forms of MFI model. A policy paper “The Microfinance Bill: Need for a Fresh Outlook” authored by Dr. Alok Misra was released for comments by ACCESS ASSIST and UNDP in the Inclusive Finance India Summit in December 2014. A roundtable under PSIG was organised, to deliberate on the consensus on the outlook for microfinance regulation. The panel at the roundtable comprised of a mix of players, including representation from MFIN, M-CRIL, NBFC-MFIs, NGO-MFIs, investors, IBA, and sector experts. A total of 26 paticipants contributed in the roundtable. The members debated on the need for MFI Bill considering the changed policy landscape, the time and effort required for another round of legislative procedures and the suitable agency to champion the fresh impetus for a new bill, the majority, including the NBFC-MFIs supported the need for regulation covering all forms of microfinance, through the means of a bill. It was concluded that an omnibus regulation is required covering all forms of MFIs and regulatory approach should not be restricted to the legal type but by the type of the underlying activity/business. In the current policy landscape, NGO-MFIs are not the ideal legal entities to undertake financial intermediation, there has to be a supportive framework to enable them to transform within a defined time frame. Moreover, it is equally important to have robust client protection principles for other players like SBLP and Banks catering to the same client segment and clear policy/legal protection against state government intervention.
(viii) Roundtable on Financial Inclusion in India-Small Finance Banks, New Harbingers of Hope, New Delhi on December 08, 2015 <attachment>
 

PSIG has a mandate of supporting and building capacities of institutions engaged in promoting access to financial services to the poor and vulnerable class. With the announcement of Small Finance Banks (SFBs) and transformation in the roles of the existing players and entry of new players in the financial inclusion space, need was felt to bring these new leaders together under one roof to discuss the opportunities and challenges which would be faced by them in taking financial inclusion to the next level. The roundtable was attended by the SFBs, Micro Save as the Technical Partner for the session, DFID, SIDBI, Sector Experts and other Stakeholders. Engaging discussion was held on key thrust areas like human resource management, technology, client segmentation & products, re-branding etc.

(c) State Events & Conferences

(i) SHPI-Bank Consultation Meet Taking SHG Bank Linkage to the Next Level in Patna, Bihar in May 2013 <Report>
  The event was organized in collaboration with NABARD to identify the significant issues and bottlenecks in SHG bank linkage in Bihar and facilitate discussion and convergent action among the concerned stakeholders towards enhancing bank lending to SHGs. The theme of the event was taking SHG Bank Linkage to the Next Level and it was well attended by stakeholders associated with SHG-Bank Linkage model including senior officials from RBI, Banks, representatives from SHPIs, apex development finance institutions including NABARD and SIDBI, Funding organisations, Government departments, and technical resource agencies. The outcome suggested the need for strategic investments in institutions and systems building, convergence of efforts among agencies, as well as development of revenue based model for long term support and monitoring of SHGs.
(ii) Round Table On: Accelerating Financial Inclusion through Microfinance- An Interface with Banks/FIs in Bhubaneswar, Odisha in December 2013 <Report>
  Post the Andhra Pradesh crisis in 2010, the fund flow from banks to MFIs across the country, including in Odisha, was severely affected Accordingly, a roundtable was organized so as to identify the key concerns and constraints that banks face in context of lending to MFIs, facilitate consultative deliberations among stakeholders including rating agencies, credit bureaus, consulting organizations, industry bodies etc. to strengthen further the MFI channel by re-establishing the credibility of the MFIs in the state and explore possible collaborative efforts among various stakeholders for supporting the microfinance sector and enhancing fund flow from banks to MFIs.
(iii) Roundtable on: Micro-insurance in Bihar: Challenges and Prospects in Patna, Bihar in February 2014 <Report>
  The roundtable was organized to understand the challenges and prospects of Micro-insurance in Bihar. The key objectives of the Roundtable   were to; to understand the operational and policy related challenges in Micro-insurance delivery in Bihar, to understand the factors and requirements of scaling up of promising models of Micro insurance delivery in the state, to seek inputs on how PSIG and other programmes can collaborate and facilitate in overcoming some of these critical issues and facilitate the Micro-insurance penetration in the state.
(iv) Round Table On: Accelerating Access to Finance in UP- BANK-MFI Interface in Lucknow, UP in March 2014 <Report>
  Post the Andhra Pradesh crisis in 2010, the fund flow from banks to MFIs across the country, including in UP, was severely affected Accordingly, a roundtable was organized so as to identify the key concerns and constraints that banks face in context of lending to MFIs, facilitate consultative deliberations among stakeholders including rating agencies, credit bureaus, consulting organizations, industry bodies etc. to strengthen further the MFI channel by re-establishing the credibility of the MFIs in the state and explore possible collaborative efforts among various stakeholders for supporting the microfinance sector and enhancing fund flow from banks to MFIs.
(v) Workshop on Performance of Business Correspondent (BC) Model in the State of Bihar, June 2014 <Report>
  The workshop was organized to apprise stakeholders about performance of banks through BC channels; an overview of a few BCNMs; and challenges faced by them at the grass root level and seek policy feedback from various stakeholders like bankers and BCNMs. The main agenda of the workshop was to present the “Drill-down Study of BC Model in Bihar” and provided findings and recommendations to increase the performance of BC channel in the state. The presentation was done by MicroSave.
(vi) Pension Aggregator’s Forum in Patna, Bihar in September 2014 <Report>
  Based on the consensus built during the 3rd SFIF meeting, a pension Aggregator’s Forum has been formed in Bihar and inception meeting is organized on 2nd September 2014 with PSIG support. The forum comprised of major pension aggregators working in Bihar. During the meeting, various policy related issues like Support from state government departments, inclusion of district level Financial Literacy Centers of Lead Banks, micro pension should also be included while providing training and counselling to community, BCAs, Bankers, revision in the incentives of aggregators for inducing higher motivation for on-ward enrollment of clients etc and operational related issues like advertisement of Swavalamban scheme in local language and insufficient supply of promotional Materials, delay in receiving documents like PRAN, statement of transaction, advertisement materials etc, lack of trust among people due to presence of fraud aggregators, lack of clarity on exit/withdrawal clause after gaining 60 years of age etc were discussed at length. The proceedings of the meeting have been shared with Pension Fund Regulatory Development Authority (PFRDA). Feedback was also sought on the Micro pension Compendium being prepared for further dissemination to PFRDA.
(vii) Pension Aggregator’s Forum ( 2nd meeting ) in Patna, Bihar in November 2014 <Report>
  Second meeting of Pension Aggregator forum was organised in Patna on November 28, 2014, it was hosted by Centre for Development orientation Training (CDOT). Meeting initiated with outlined agenda of the meeting; objectives of Aggregator forum were also reiterated to them. Apart from fellow Aggregators, the meeting was attended by Pension Fund Regulatory Development Authority (PFRDA).

Representatives from Cashpor Microcredit, Bandhan Financial Services, and Sahaj E Village have shared respective institutional model for NPS-Lite scheme of PFRDA. Representative from PFRDA appraised the forum on systems related initiatives such as Generation of e-PRAN card, simplification of Swavalamban application form, concept of e-passbook etc. He also addressed the queries of participants on product, processes, and delivery. It was informed to the forum that Micro pension Compendium has been finalized after incorporating feedbacks from PFRDA and Aggregators. This is being translated in simple Hindi for ease of use; the document would be circulated to Aggregators.
(viii) Thematic Roundtable On “ Credit Bureau System for SHG Data Reporting in Bhubaneswar April 20, 2015 <Report>
 

The need for a credit bureau system for microfinance in India was triggered mainly by two factors:
(1) Regulatory Changes brought in by RBI allowing MFIs to register as NBFC-MFIs and making it mandatory for them to register with at least one Credit Information Centre (CIC) and
(2) the strong need in the sector to know about the other liabilities of its borrowers and their performance on that.
Though Self Help Group - Bank Linkage Programme (SHG-BLP) has already demonstrated as one of the most potential channels of microfinance-to facilitate access to finance for millions of poor clients in India, still it is facing a few issues and challenges. Realizing the need and importance of it, PSIG-SIDBI in collaborations with other key stakeholders including Banks, RRBs, Credit Bureau agencies etc. is planning to undertake a pilot initiative to systematically capture the SHG data including-both of the groups and individual members and share that with any established credit bureau system for generating appropriate credit based information and make that available to institutional lenders for reference. The outcome of the pilot initiatives will be shared with all the key stakeholders. With a view to have a wider and collective consultation, PSIG organized a thematic workshop on “Credit Bureau System for SHG Data Reporting”. The event was participated by Banks, Microfinance Institutions, SHG promoting institutions, Business Correspondents (BCs) and BC Network Managers (BCNMs), Credit Bureau, Technical agencies, UNDP, DFID, Government of Odisha (GoO) representatives and other organisations. The key objectives of the Roundtable were to; Share the experiences and lessons learnt from microfinance credit data reporting by MFIs, facilitate deliberations on the feasibility & challenges of capturing/reporting SHG data by credit bureau and solicit suggestions for way forward to integrate or create a Credit Bureau system for the SHG channel.

(ix) (ix) Pension Aggregator’s Forum ( 3rd meeting ) in Patna, Bihar in April 24, 2015 <Report>
  The third meeting for Aggregator’s Forum, Bihar was organized on 24th of April, 2015 at Madhya Bihar Gramin Bank, one of the members of the forum in Patna. It was attended by 17 representatives of 10 aggregators (out of 13), PSIG SIDBI and ACCESS ASSIST state team. The meeting was organised to discuss the recently announced new initiative- Atal Pension Yojana (APY) in the Budget Speech (2015-16). Meeting was called to receive suggestions from the aggregators, which can be forwarded to PFRDA to incorporate in guidelines of APY to make it clear on merger of Swavalamban scheme with APY and its effective implementation. During the meeting, aggregators gave their suggestions and raised the points which need more clarity in guidelines of APY. Major discussion points were clarity over merger of Swavalamban scheme in APY; withdrawal procedure; incentive of aggregators; role of different stakeholders; promotion of integrated products etc. Proceeding of the meeting have been shared with PFRDA to incorporate suggestions of aggregators in guideline of APY.
(x) Roundtable with Business Correspondent Organizations, Bihar in August 2015 <attachment>
  Business Correspondents are the agents to carry various financial inclusion products including savings, credit, insurance and other related government schemes to the bottom of the pyramid. Accordingly, it is imperative to understand the issues and challenges faced by BCAs in implementing the government social security schemes. The roundtable deliberated on the role of BC organization and how PSIG can help through its advocacy component to make the path smoother for BC in implementing these schemes and help in achieving total FI. BC organizations unanimously said that there is vast need of financial literacy at ground level and PSIG can pitch in to generate awareness. Also, training of BCAs was a key issue which emerged out of the roundtable, so as to enable the BCA’s to deliver services efficiently.
(xi) Regional Lenders Forum Meeting, UP in October, 2015 <attachment>
  With the revival of the micro finance sector, it was felt pertinent to create a common platform for lenders to come together and discuss the issues and challenges being faced by them to fund the debt requirements of the industry. Accordingly, it was felt that one of the key interventions taken in this regard was the formation of the “Lender’s Forum” to promote transparent, responsible and commercially sustainable industry practices and code of conduct so as to better safeguard the interest of the poor clients . Given the fact that adequate and timely funding support plays a critical role for the growth and sustainability of microfinance programs the main objectives of the regional level lender’s forum meetings is aligned with the national agenda with a main focus on promoting investments in the MFI sector.
(xii) Orientation Programme on “Atal Pension Yojana (APY)”, Bihar in October 2015 <attachment>
  To successfully roll out and implement the government schemes to the poorest and the vulnerable, synergies have to be attained with the key stakeholders say banks/MFIs/NGOs/BCs required for mobilizing subscribers under such schemes. It has been felt during discussions on various forums that there has generally been lack of information and awareness on such products which has in turn resulted in its low off-take. On one hand where it is essential that the subscribers are sentitised and informed about the scheme details, benefits etc, accordingly, on the other hand the key players should also be aware about the scheme guidelines, exit processes, eligibility criteria etc.
(xiii) Regional Lenders’ Forum, Odisha in November 2015 <attachment>
  Considering the demand from bankers as well as MFIs operating in Odisha, need was felt to built a common forum where bankers, MFIs and other lending agencies could interact. Accordingly, the 1st Regional Lenders Forum meeting was organized in Odisha in November 2015. Adequate and timely funding support plays a critical role for the growth and sustainability of microfinance program and facilitates greater financial inclusion in the process. PSIG felt a state-wide requirement for having such forums so as to discuss and understand the fund requirements of the MFI players in that region. The participants for the included representatives from the State Bank of India, Corporation Bank, Bank of India, Indian Bank, DCB; Rating Agency - Care Ratings; High Mark Credit Bureau, Dia Vikas and regional MFIs operating in that region. Bankers desired that such regional level forums should be held from time to time in order to bridge the demand supply gap of credit as well as information exchange between bankers.
(xiv) Orientation Programme on Atal Pension Yojana (APY), Damoh, MP in November 2015 <attachment>
  As part of the PSIG programme, a district level Atal pension Yojana orientation (APY)orientation programme was organised in Damoh district at the Zila Panchayat office. Damoh district was chosen, in consultation with SBI, as this district is one of the low APY enrollment districts. The orientation programme was conducted in partnership with Centum Training Institute (a partner agency of PFRDA for conducting APY orientation programme). The workshop was attended by various stakeholders such as from Senior Government officials like Damoh (Upper Collector) and officials from SRLM, Dept. of Social Justice, Dept. of Women & Child Development, Labour Dept. and professors from Government PG colleges.
(xv) Orientation Programme on Atal Pension Yojana (APY), Bhopal in November 2015 <attachment>
  With the mandate to sensitise and create stakeholders awareness towards dispensation of APY, similar orientation programmes have been held at various PSIG states from time to time. On such programme was held in Bhopal in November 2015. The orientation featured presentation on National Pension Scheme (NPS) and APY by Pension Fund Regulatory Development Authority (PFRDA) and Centum Training Institute (a partner agency of PFRDA for conducting APY orientation programme). The workshop was attended by various officials from PSU Banks, Private Banks, Regional Rural Banks (RRBs) & Cooperative Banks, Departments, NGOs and some MFIs.
(xvi) Odisha Financial Inclusion Conclave, November 2015 <attachment>
  The Odisha Financial Inclusion Conclave is one of the initiatives under PSIG to bring under one roof various stakeholders from NABARD, commercial banks, Senior State Development Officials and representatives from SLBCs, MFIs, RUDSETI, Srei Sahaj etc. Discussions were deliberated around the SHG movement in Odisha, the importance of Financial Literacy Centers (FLC) and how their existing structures could be leveraged to educate the poor clients about savings, credit, insurance etc. Also, discussions were centered around the fact, that Odisha being an underdeveloped state, concert efforts should be put on extending FL measures to the tribal regions wherein a direct intervention of some kind is needed with the help of community members, etc.
(xvii) Orientation Workshop on Atal Pension Yojana, Uttar Pradesh in January 2016 <attachment>
  A State level and two district level orientation programme on APY were organized in Lucknow, Rai Bareily & Rampur on 19th, 22nd, & 28th January-2016 respectively, which was attended by 122 participants from different banks (Private, National, RRBs and Cooperative Bank), MFIs, & aggregators. The orientation was jointly held in co-ordination with Centum Learning (a partner agency of PFRDA for conducting APY orientation programme). Discussions were focused around importance of insurance and the basic product details of NPS & APY say their dispensation, benefits, exit criteria etc.
(xviii) Orientation Programme on Atal Pension Yojana, Bhubaneshwar & Baripada, Odisha in February 2016 <attachment><attachment>
  The orientation programme was organized in collaboration with Centum Learning (a partner agency of PFRDA for conducting APY orientation programme). The discussions were lead by Sri Bishwanath Lal, Lead District Manager, State Bank of India, Khurda, Block Development Officer of Baripada, Deputy District Manager, NABARD and PSIG Officials. The key mandate of such focused orientations programmes has been to familiarise & discuss the key issues and challenges faced by the Bankers while executing APY on ground level. GM, RBI also participated in the discussions.
(xix) Regional Lender’s Forum, Odisha in March 2016 <attachment>
  This is the 2nd Regional Lenders Forum meeting in Odisha. Odisha being the hub of small and mid-sized MFIs as well as multiple NGOs/development organizations, holding Regional Lenders Forum has greatly facilitated in channelizing fund flow to such entities especially the micro finance sector. It has also helped in addressing the inhibitions and queries of bankers’ w.r.t MFI lending and broadens their perspective by way of cross bank interactions. One of the key take away emerged from the lender’s forum was a need to organize additional sensitization/exposure programs for bankers on MFI operations and appraisal process, holding banker-MFI interface meetings and similar advocacy with the HO departments of commercial banks.
(xx) Sensitization programme on Atal Pension Yojana at Gaya and Begusarai, Bihar in January & February 2016 <attachment>
  As a follow up of the last orientation programme on APY in Patna, Bihar in November 2015, another sensitization programme was held at Gaya & Begusarai in partnership with Centum Learning (a partner agency of PFRDA for conducting APY orientation programme). The programme was attended in large noumbers by around 30 stakeholders in Gaya and 50 participants in Begusarai which included commercial banks, RRBs, District Agriculture Officer, NABARD and DHAN Foundation.
(xxi) Roundtable on MUDRA Yojana: Status, Opportunities & Challenges, Bihar in March 2016 <attachment>
  The PMMY is an ambitious project of the GOI to extend loan services to those entrepreneurs who lack capital support and have been left out from the main stream banking. During various state level interactions, SFIFs, consultative meets etc, demand was continuously felt from the stakeholders to have a detailed roundtable discussion on the various aspects of MUDRA Yojana. Various stakeholders from pointed out towards a lack of clarity in terms of interest rate, Credit Guarantee funds, support from MUDRA bank to institutions etc. Keeping this as the background a Roundtable on MUDRA Yojana, along with MUDRA Bank’s participation was organised for bankers, government officials and other implementing agencies in Patna.

(d) State Financial Inclusion Forum (SFIF)

About State Financial Inclusion Forum
One of the key interventions of the PSIG programme is to undertake appropriate policy advocacy efforts towards enhancing access to finance in all the four states as well as at National level. Towards this a multi-stakeholders PSIG State Financial Inclusion Forum (SFIF) has been set up in Bihar, Odisha, UP and MP.
The broad objectives of the SFIF are:
  • Promote effective coordination and synergy among all stakeholders at state level for creating an enabling environment for financial inclusion in the state.
  • Track the progress and performance indicators for financial inclusion in the state.
  • Bring convergence between several programs run by the Government and other agencies to maximize impact of the investment made.
  • Identify constraints and issues related to financial inclusion including legal and regulatory aspect as well as operational impediments and propose collaborative solutions.
  • Assess key advocacy issues and forward that to the National Level Think Tank to be taken up at the national level.
  • Explore possibilities of new and innovative activities in the state under Financial Inclusion.
(i) Bihar
The following SFIF meetings have been held:
(ii) MP
The following SFIF meetings have been held
(iii) Odisha
The following SFIF meetings have been held:
(iv) UP
The following SFIF meetings have been held:

(e) Thematic Papers

  1. Call for an Inclusive Banking Structure for India by 2019, Fifty Years after Bank Nationalization by Shri Vijay Mahajan - October 2013 <Report>
  2.  Extant Regulation of Microfinance sector – a discussion paper by Shri N Srinivasan - April 2014 <Report>
  3.  Local Area Banks in India: A Review by Prof. M S Sriram - June 2014 <report>
  4.  Regional Rural Banks and Financial Inclusion: Policy Imperatives <report>
  5.  Crowd funding in Micro finance in India- Issues, Challenges and Opportunities
  6.  Scope and Limitations for Product Development and Offering Diversified Products at Scale in Microfinance<report>
  7. Outreach of Microfinance Finance Institutions in four focus states <report>
  8.  Dipstick Study on Financial Literacy Centres Status, Constraints & Way forward in Bihar, Uttar Pradesh, Madhya Pradesh and Odisha <report>
  9. Flyer on sectorial initiatives under Financial Inclusion and Responsible Finance. <report>
  10. Policy paper on legal and regulatory framework for micro finance institutions in India. <report>
  11. Policy paper on Micro Finance: Promise of Financial Inclusion. <report>
  12. Flyer on Challenges ahead or Self Help Group (SHG) and Movement. <report>
  13. The Bhart Micro Finance Report - 2015. <report>
  14. The Bhart Micro Finance Report - 2016. <Report>

(f) Studies & Researches

Completed
(i) Study on Micro finance activity in PSIG States by High Mark Credit Information Services - March 2014
With a view to gauge the depth of penetration of microfinance activity, extent of multiple borrowing, etc. and channelise the resources of MFIs towards the least penetrated Districts / Tehsils, Highmark has been contracted to undertake a study on “Study on Micro finance activity in PSIG States”. The study aims at covering various parameters like Portfolio Analytics for borrower and account level activity, Presence & Performance Report at District & Taluk Levels and Visual Heat Maps in the PSIG States of Uttar Pradesh, Madhya Pradesh, Odisha and Bihar. Highmark pioneered the Microfinance Bureau in India, and operates one of the world’s largest Microfinance Bureau database.
 
(ii) Business Correspondent Models in Bihar- Constraints and Way Forward by MicroSave - September 2014 <attachment>
PSIG has a mandate to improve access to financial services in the underserved regions of UP, MP, Bihar and Orissa. The programme aims to work with all channels of financial inclusion. PSIG programme interventions hope to improve effectiveness of BC model and also add to the body of knowledge around these interventions. With this in view, a study is intended to improve the current body of knowledge around the effectiveness of this model in a State context, provide recommendations on likely intervention to improve its effectiveness and to strengthen its policy advocacy initiatives. MicroSave has been selected for conducting a study on “Drill-down Study of BC Model in Bihar” which comprised of compilation of drill down case studies of existing Business Correspondent (BC) models in the State of Bihar, conduct an analysis of the prominent BCs as well as the institutional assessments of promising BC models operating in Bihar as also study the potential road block for the success of BC model in India. The study has since been completed and disseminated on September 18, 2014 by the hands of Hon’ble Minister of Finance - Bihar.
 
(iii) Vision Documents
Bihar: Status of Financial Inclusion and way forward: Bihar 2012-2017 <Report>

Odisha: Status of Financial Inclusion and way forward: Odisha 2012-2017 <Report>

UP: Status of Financial Inclusion and way forward: UP 2012-2017 <Report>

MP: Status of Financial Inclusion and way forward: MP 2012-2017 <Report>
 
(iv) Compilation of Drill-down Case Studies of existing Business Correspondents and Business Correspondent (BC) models in MP by PricewaterhouseCoopers Pvt. Ltd <attachment>
PSIG programme interventions hope to improve effectiveness of BC model and also add to the body of knowledge around these interventions. With this in view, a study is intended to improve the current body of knowledge around the effectiveness of this model in a State context, provide recommendations on likely intervention to improve its effectiveness and to strengthen its policy advocacy initiatives. PSIG in collaboration with directorate of Institute Finance (DIF), GoMP and PwC has initiated a study on “Drill-down Case Studies of existing Business Correspondents and Business Correspondent (BC) models in MP”. The study is completed and disseminated.
 
(v) Study on Corporate Governance Practices of MFIs by MicroSave <attachment>

During the various deliberations held under the policy output of PSIG programme with Risk Heads of leading public/private sector banks, MFIs     and Rating Agencies to understand the risk perceptions associated with MFIs, the key risks highlighted were Political, Regulatory and Governance. These stakeholders highlighted Governance as a key risk which hinders higher exposure in MFIs. Governance also emerged as a key area for intervention in the Responsible Finance Forum. It was suggested that a study/survey on existing practices in the area of Governance should be carried out to understand the state of practice and plan appropriate interventions. Accordingly, a study on the Governance Practices among MFIs was initiated. The study is completed and disseminated.

 
(vi) Finscope Survey

Fin Scope Survey has been conducted by the Fin Mark Trust (FMT), Johannesburg, South Africa, a non-profit independent trust, funded primarily by DFID and established in March 2002. Fin Scope Survey is an individual client-based survey initiated and developed by Fin Mark Trust. It is, globally regarded as one of the most credible studies on demand side issues in the financial services sector, creating a better understanding of how low-income consumers manage their financial lives. FMT has since been contracted for conducting the survey in March 2014. The survey has been completed and first consultative workshop was held in New Delhi during February 2016. The report has been finalized and ready for release.

(vii) Voices of Microfinance  Clients <attachment>
(viii) Microfinance in India - Is overindebtedness a worry? <attachment>

(g) State-wise quarterly news bulletin

As part of various policy advocacy initiatives, Quarterly bulletins tracking the important financial inclusion indicators in the state as also knowledge sharing among the stakeholders have been complied and published.
Bihar

1. Inclusive Finance Bulletin for February 2014 <Attachment>

2. Inclusive Finance Bulletin for June 2014 <Attachment>

3. Inclusive Finance Bulletin for September 2014 <Attachment>

4. Inclusive Finance Bulletin for December 2014 < Attachment>

5. Inclusive Finance Bulletin for March 2015 <Attachment>

6. Inclusive Finance Bulletin for June 2015 <Attachment>

7. Inclusive Finance Bulletin for September 2015 <Attachment>

8. Inclusive Finance Bulletin for December 2015 <Attachment>

9. Inclusive Finance Bulletin for March 2016 <Attachment>

MP

1. Inclusive Finance Bulletin for September 2014 <Attachment>

2. Inclusive Finance Bulletin for February 2015 <Attachment>

3. Inclusive Finance Bulletin for September 2015

4. Inclusive Finance Bulletin for December 2015 <Attachment>

5. Inclusive Finance Bulletin for March 2016 <Attachment>

Odisha

1. Inclusive Finance Bulletin for February 2014 <Attachment>

2. Inclusive Finance Bulletin for June 2014 <Attachment>

3. Inclusive Finance Bulletin for September 2014 <Attachment>

4. Inclusive Finance Bulletin for December 2014 <Attachment>

5.Inclusive Finance Bulletin for March 2015 <Attachment>

6. Inclusive Finance Bulletin for June 2015 <Attachment>

7. Inclusive Finance Bulletin for September 2015

8. Inclusive Finance Bulletin for December 2015 <Attachment>

9. Inclusive Finance Bulletin for March 2016 <Attachment>

UP

1. Inclusive Finance Bulletin for October 2014 <Attachment>

2. Inclusive Finance Bulletin for March 2015 <Attachment>

3. Inclusive Finance Bulletin for June 2015 <Attachment>

4. Inclusive Finance Bulletin for September 2015 <Attachment>

5. Inclusive Finance Bulletin for December 2015 <Attachment>

6. Inclusive Finance Bulletin for March 2016 <Attachment>