National level workshop on Sustainability of SHGs - Synthesis of Parallel session I

Parameters of Sustainability Long term continuation of an institution. Owned, controlled and managed by People. Appropriate systems and processes. Scaling up for sustenance Established partnership with Mainstream Multiple products and services responding to needs Meeting its own costs. Fulfilling the developmental needs of the members. Identity

Dimensions of Sustainability Institutional - Shared purpose, structure, strategy, staff, systems, style and shared values…… Financial - Deepening and scaling up financial services (saving, credit and insurance) - Ability to mobilise resources for self growth Developmental -Achieving poverty reduction -Enhancing quality of life

Usury Sustainability of members of SHGs are more important rather than Sustainability of MCIs (Micro Credit Institutions)

Policy level changes required While financing MCIs( Micro Credit Institutions), cap on the interest rate to be Fixed on the ultimate beneficiaries shall be prescribed While financing MCIs( Micro Credit Institutions), cap on the interest rate to be Fixed on the ultimate beneficiaries shall be prescribed Regulatory bodies like RBI or NABARD shall not insist on individual account when they are already part of Financial inclusion through SHGs. Regulatory bodies like RBI or NABARD shall not insist on individual account when they are already part of Financial inclusion through SHGs. Development oriented SHG Federations should be encouraged by banks and funding agencies. Development oriented SHG Federations should be encouraged by banks and funding agencies. No subsidies. No subsidies.

Implementation level changes for Sustainability of SHGs Federations should be discouraged to do lending activity as they do not have capacity for managing portfolio. Federations should be discouraged to do lending activity as they do not have capacity for managing portfolio. Members of SHGs should have same socio economic status Members of SHGs should have same socio economic status NGOs should not operate on Project mode. It should operate on Programme mode. NGOs should not operate on Project mode. It should operate on Programme mode. Capacity of NGOs should be duly assessed on infrastructure, core competence, past experience before providing promotional support. Capacity of NGOs should be duly assessed on infrastructure, core competence, past experience before providing promotional support. MIS systems needs to be strengthened to avoid duplication MIS systems needs to be strengthened to avoid duplication Every stake holders should treat each one as partners to ensure effective convergence of efforts. Every stake holders should treat each one as partners to ensure effective convergence of efforts.

Implementation level changes for Sustainability of SHGs Timely, adequate loans Timely, adequate loans SHGs should be treated as business propositions and not as beneficiaries/charity mode SHGs should be treated as business propositions and not as beneficiaries/charity mode Capacity of building of SHG Members, leaders, Promoting NGO. Capacity of building of SHG Members, leaders, Promoting NGO. Banks should give more focus for SHGs rather than MCIs. Banks should give more focus for SHGs rather than MCIs. Banks should give more focus for BC and BF model effectively rather than supporting MCIs. Banks should give more focus for BC and BF model effectively rather than supporting MCIs. Capacity of the Community to be built up to the extent that they are able to take up their own issues. Capacity of the Community to be built up to the extent that they are able to take up their own issues.

Implementation level changes for Sustainability of SHGs MCIs activities need to be properly documented and placed before NABARD/RBI/Govt. MCIs activities need to be properly documented and placed before NABARD/RBI/Govt. Major NGOs shall set up resource centre in North India for spreading SHG Movement Major NGOs shall set up resource centre in North India for spreading SHG Movement In the regions where the movement have not picked up to the desired level, Development programmes can be routed through SHGs. In the regions where the movement have not picked up to the desired level, Development programmes can be routed through SHGs. SHGs should be temple of development at the grassroots democracy SHGs should be temple of development at the grassroots democracy SHG should decide what they want to do. There should not be external pressure. It should be member driven. SHG should decide what they want to do. There should not be external pressure. It should be member driven.

Thank You