VIENTIANE 2008:
India
BANKING WITH A DIFFERENCE:
SERVING POOR & SELF-EMPLOYED WOMEN
Deval Thakar
SEWA Bank India
In 1974, 4000 self-employed women workers who contributed share capital of Rs.10 each founded the Shri Mahila SEWA Sahakari Bank. It was registered against stiff opposition and resistance from the banking system due to the perceived notion that a Bank for poor, illiterate, self-employed women was a disastrous and suicidal attempt.
The rural banking program of SEWA Bank was formed to help rural women climb out of the vicious cycle of poverty and build capital and assets. Rural women are encouraged to become owner, user and manager. SEWA Bank operates the Savings and Credit activities in six districts of Gujarat which are carried out through the formation and development of women’s Self Help Groups, numbering 3000 to date. SEWA bank is breaking new grounds with India’s micro pension scheme, the first of its kind for self employed women.
SEWA Bank aims to 1) provide services for savings and fixed deposits; inculcating thrift among the women; managing and ensuring safe custody of their cash; and 2) provide credit to further productive, economic and income generating activities of the poor and self employed.
It also seeks to relieve women from exploitation of moneylenders through: 1) adoption of procedures and designing schemes suitable to poor self employed women, like collecting daily savings from their places of business or houses, or providing savings boxes, and 2) providing training on financial counselling, capacity building and knowledge of banking procedures.
It emphasizes the life cycle needs - marriage, old age, repair or maintenance of house, working capital, accident, death, maternity, festival, flood, cyclone, sickness.
An example of SEWA Bank initiative in cooperation with SELCO is Project Urja. SELCO is the technology partner that designs and improvises solar and biogas run cooking and lightning devices. Project Urja aims to uplift women’s lives by supplying permanent and affordable sources of energy and convenient products. This project helped rural women in many ways such as increasing their incomes, improving their productivity, reducing drudgery and improving living conditions.
SEWA Bank’s clients are characterized as having low income; their assets or acquired property are on sale or mortgaged; they lack capital, and they suffer from indebtedness because they pay very high rates of interest. Indebtedness is the sensitive zone among the poor women that SEWA Bank aims to address.
The philosophy behind the formation of rural banking emphasizes TRUST, particularly for the women in poverty, who rely on trust as the foundation for lending.
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