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�

Deendayal Antyodaya Yojana - National Rural Livelihoods Mission

Ministry of Rural Development, Govt. of India

Enabling Rural Financial Consumer �Reinforcing Financial Inclusion

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Key elements of Financial Inclusion

Financial Inclusion

Products & Services

Financial Service Providers

Enabling Policies

Awareness & willingness to access

Demand Side

Supply Side

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Digital rupee

Instant Loan

in 2 Minutes

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Institutions

  • SFBs
  • Payment Banks
  • IPPB
  • Fintech
  • NBFC

Products

  • PMJDY
  • PMSBY; PMJJBY
  • OD facility; MUDRA
  • Banks specific products
  • APY; PMSYM; NPS

Policies

  • Proactive & favorable policies regulators

​

  • Enabling environment by Central & State Govts

?

What about demand

​

The Financial Inclusion architecture

​

  • 51.04 Crore bank accounts under PMJDY (Rs 1.73 lakh Cr balance)
  • 90% of Indian adults have bank accounts
  • 1.59 Lakh branches (approx 15 branches per 1 lakh of population)
  • Network of 2.17 lakh ATMs (47% are in rural and semi-urban areas)
  • 32 lakh BC/ Paypoints (banking access point claimed in almost all villages within 5km)

​

The Supply Infrastructure

  • Centre for Financial Literacy (CFL) initiative
  • Existing architecture of FLCC (of Banks)
  • Some standalone initiative

​

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Financial awareness - a global snapshot

67%

of adult worldwide are financially illiterate

33%

of adults in US are financially illiterate

65% men

&

70% women are financially illiterate

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Extent of Financial literacy in Country

Source: NSFE 2020-25. Study conducted by National Centre for Financial Education

Rural –Urban

Male-Female

Income wise

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Fact Check - The demand side

    • 88% women still prefers to holds their savings in cash

​

    • Though 78% women hold a savings account with bank, prevalence of other products like RD or term deposit are low at just 13% and 9% respectively

​

    • 44% female have life insurance

​

    • Only about 4% women invest in some kind of pension products

​

    • 21% women access services at BC facility

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    • Adoption of services lesser than awareness

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Source: NCFE-FLIS 2019

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The DAY-NRLM initiative on Financial & Digital awareness

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1. The implementation architecture & modules

Master trainer

(4 per district)

Field level trainers

(trained & certified SHG members)

(6-10 per block)

SHG/Villages

District

Block

Village level

(25-40 members)

Financial planning

Savings led model

Credit

Insurance literacy

Digital Finance

Enterprise Financing

Pension

Modules

1.

2.

3.

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Service delivery

Awareness

Service delivery

2. Approach: Awareness with service delivery

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3. The Localized & Permanent architecture

35,000 plus

formal secondary level federations - (CLF)

4,53,000 primary level federations (VO)

100 million plus women in 9.1 million SHGs

Village/Hamlet

Village/Gram Panchayat

Sub block/Block

The architecture is/will be managed by Community Institutions

SHG Members & rural folks

The Community Model

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4. Supplementing system: FLCC & Community

Bank-led Architecture

FLCC

(1-2 personnel)

FL Camps

Master trainer

(4 per district)

Field level trainers

NRLM-led architecture

Village Camps

2058 master trainers

40,000 plus dedicated trainers

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5. Concurrent Evaluation

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Outreach of program: Largest community driven architecture

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Dist Covered

Block Covered

State Covered

Master trainers

Field level trainers

No. of SHG members trained & serviced

(yearly)

28

668

6057

2058

Dedicated – 40,843

Extended – 1 lakh plus

2669

3.58 Cr

SAKSHAM Centre

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Outcomes on ground

(1) SHG Credit linked (lakh)

(2) Amount of Bank loan (Cr)

(3) No of digital transactions (lakh)

(5) Life insurance coverage (lakh)

(6) Accidental insurance coverage (lakh)

(7) Health insurance

Coverage (lakh)

(8) Pension coverage

(lakh)

(4) Amount of digital transaction (Cr)

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16

ASSAM

BIHAR

CHATTISGARH

GUJARAT

JHARKHAND

MADHYA PRADESH

ODISHA

RAJASTHAN

UTTAR PRADESH

WEST BENGAL

Addressing regional disparities: Increasing credit flow in poorer states

Share of Annual SHG Bank Loan disbursement

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Issues & Challenges

NRLM:

  • The architecture is largely Physical
  • Time lag in respond to changes in sector/ecosystem
  • Customization?

Sector:

  • Awareness – often an one-time input
  • Investment till a critical masses acquire acceptable level of financial & digital literacy
  • Neutrality of process – A fine balance between financial counseling v/s product selling
  • Isolated & standalone efforts – limited convergence among actors

​

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Way forward:

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“Well managed intervention to Self managed intervention”

​

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SAKSHAM Centre: One Stop solution for financial need

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Saksham Centre

​

(run by trained & certified

community resource persons)

Operational at sub block level

(20-25 villages)

Identify left out member/SHG

FL Training/

awareness

Delivery of services

Service delivery mechanism

​

  • Bank Sakhi
  • FL CRP
  • BC Sakhi
  • Bima Sakhi
  • Vitta Sakh

Basic grievance redressal

The Centre

RBI is supporting 14 States under DEA Fund

2669 Centers operational across 18 States

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Thanks