scholarly journals ROLE OF DIGITIZATION IN FINANCIAL INCLUSION OF SELF- HELP GROUPS

2019 ◽  
pp. 43-46
Author(s):  
Puja Rajvanshi ◽  
S. K. Vyas
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Financial Inclusion ◽  
Credit System ◽  
Digital Inclusion ◽  
Digital Medium ◽  
Self Help ◽  
The Poor ◽  
Self Help Groups ◽  
The Impact

India has always aimed at inclusive growth. A large part of population still resides in rural areas. Economic development of India is not possible without rural development. Several programs were introduced from time to time with the core objective of easing the accessibility of financial services to the poor but with little success. One of the reasons for rampant underdevelopment of rural India is inaccessibility of funds at the grass root level. As the formal credit institutions were considered incapable of dealing with the financial requirements of the poor, microfinance emerged as an alternate credit system. This has further gained momentum by using technology to provide financial services to the poor. This paper would focus on how digitization has influenced financial inclusion and what are the various challenges that must be tackled to make it more effective. As the focus is on SHG- BLP model, this paper would emphasize how the SHGs can utilize digital medium to reap more benefits out of this microfinance model. The paper would give insight into how the impact of microfinance can be enhanced using technology. KEY WORDS: Microfinance, Self Help Groups, NABARD, Digital Inclusion, Digitization etc.

A Study on Importance and Efficacy of Self Help Groups in Women Employment

2016 ◽  
Vol 6 (2) ◽  
Author(s):  
Sushma . ◽  
Yasir Arafat Elahi
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Rural Economy ◽  
Armed Forces ◽  
Government Organizations ◽  
Self Help ◽  
The Poor ◽  
Family Chaos ◽  
The Government ◽  
Self Help Groups

“Women”; a word that reminds us our mother, sisters, wife, daughters fulfilling all their family chaos and now they can be seen in more modern roles like managers, educators, political leaders and much more is coming. Today they have even dared to break the gender barriers to become mountaineers, pilots and even serving combat roles in armed forces. In India, after independence the constitution leaders and policy makers realized the fact that, in order to develop whole country it is very important to put women in equal position to men. It was the need of the hour to make women empower economically, socially, politically, legally as well as psychologically. Education is the first and foremost way to empower them as it created awareness and enable them to take decisions.Self Help Groups (SHGs) have become the vehicle of change in the rural areas, transforming the lives of the marginalized. SHGs organize the poor and the marginalized to join hands to solve their problems and the method has been very successfully used by the government and the Non-Government Organizations in achieving several goals. As a firm or enterprise, SHG performs the role of collective bank and enterprise and ensures better access to loans with a lower rate of interest to start micro unit enterprise. SHGs have emerged as a powerful instrument in order to eliminate poverty and for the empowerment of women in the rural economy. SHGs through the network of commercial banks, co-operative banks, regional rural banks, NABARD and NGOs are largely supply driven and a recent approach in the provision of financial services to the poor and further upgrading their status in the society. In this empirical study we analyze the performance of the SHG’s in order to understand the benefits it has accrued to the females of the society. The paper here focuses on appraising the women empowerment in various fields like economical, psychological, social etc. with the help of Self Help Groups.

Financial Inclusion Through Microenterprises of Rural SHGs

2018 ◽  
pp. 269-281 ◽  
Author(s):  
Rahul Vyas ◽  
Nidhi Nalwaya
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Economic Transformation ◽  
Financial Inclusion ◽  
Employment Opportunities ◽  
Self Help ◽  
Financial Framework ◽  
Self Help Groups ◽  
The Impact ◽  
Self Help Group

The elementary aim of microenterprises and Self Help Groups (SHGs) is to empower the impoverished populace, particularly of the rural areas, and furthermore provide financial sustainability so as to improve livelihoods. The pervasive twin threats of unemployment and exclusion from the financial framework in the rural areas are the major challenges to the economic and social development of India. A self-help group is a potent means to remove poverty in the same vein microenterprises contribute significantly to economic development and social stability by affording employment opportunities, thereby emerging as a vehicle through which low-income people can escape poverty. SHGs and microenterprises are a significant means for socio-economic transformation through financial inclusion. The objective of the chapter is to study and analyze the impact of microenterprises and SHGs on the financial inclusion of people in rural areas of Tribal South Rajasthan.

scholarly journals A Study on the Impact of Schemes and Programmes of Government of India on Agriculture to Increase Productivity, Profitability, Financial Inclusion, and Welfare of Farmers to Transform them into Modern Society

2021 ◽  
pp. 231-243
Author(s):  
Mahesh K. M. ◽  
P. S. Aithal ◽  
Sharma K. R. S.
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Modern Society ◽  
Modern Technology ◽  
Mobile App ◽  
Financial Inclusion ◽  
Agricultural Products ◽  
Theoretical Concepts ◽  
The Government ◽  
The Impact

Purpose: The foremost intent of this research article is to create awareness about various schemes for the productive sector of agriculture. Through this study, the level of performance of these agricultural schemes and programmes were analysed that will be helpful for the attainment of financial inclusion. Hence it is necessary to know about various schemes and their making to connect the beneficiaries. Agriculture is the basic source of food supply, production, processing, promotion and distribution. Agricultural products contribute to Gross Domestic Product (G.D.P.) and generate employment in rural areas. They transform the lives of the farmers in modern society. The government of India has introduced Minimum Support Price (MPS), MIF, PMKSY, PMFBY, e-NAM, PM-KISAN, PMJDY, PM-KUSUM, PKVY, NAMS, and MGNREGS. The mobile app KisanSuvidha and innovative programmes like Kisan Rail, KrishiUdaan double the farmers’ Income (DFI). These help in transforming village economy, coverage of irrigation, crop insurance, and stabilizing the income. They also ensure financial support, flow of credit and Direct Benefit transfer of subsidies and funds to beneficiaries. Adopting modern technology, farm-based activity, poultry, dairy, forestry, beekeeping and with the support of SHGs which will directly impact productivity, profitability, financial inclusion, and the welfare of farmers in the 21st century and development of the country’s economy. Design/ methodology/approaches: This study is all about the theoretical concepts based on analysis of various schemes and interconnect. Findings and results: This study reveals that the effectiveness of various agricultural programs and also identifies the benefits and beneficiaries of these schemes. Under this research, various financial services, subsidies, funds released, online platform for agricultural products, funds for micro-irrigation, and so on benefits provided by the government of India were studied. Originality/value: Analysed the various schemes and compelled its beneficiaries and develop a modern to achieve financial inclusion and economic growth through the study. Type of Paper: Research Analysis.

scholarly journals The Nexus between Mobile Money Regulation, Innovative Technology and the Promotion of Financial Inclusion in Zimbabwe

2021 ◽  
Vol 24 ◽  
pp. 1-33
Author(s):  
Howard Chitimira ◽  
Elfas Torerai
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Financial Services ◽  
Banking Sector ◽  
Regulatory Framework ◽  
Financial Inclusion ◽  
Innovative Technology ◽  
Technological Innovations ◽  
Mobile Money ◽  
The Poor

The advent of mobile money innovations has given people in rural areas, informal settlements and other poor communities an opportunity to participate in Zimbabwe's mainstream financial economy. However, the technology-driven money services have presented some challenges to the traditional banking sector in general and the regulation of financial services in particular. Firstly, most mobile money services are products of telecommunication corporations, which are not banks. Telecommunication companies use their network reach to provide mobile money services via mobile devices at a cheaper cost than banks across the country in Zimbabwe. As such, banks face unprecedented competition from telecommunications companies that are venturing into financial services. It also appears that prudential regulation of banks cannot keep up with the fast pace at which technological innovations are developing and this has created a disjuncture between the regulation and the use of technological innovations to promote financial inclusion in Zimbabwe. The Banking Act [Chapter 24:20] 9 of 1999, the Reserve Bank of Zimbabwe Act [Chapter 22:15] 5 of 1999 and the National Payment Systems Act [Chapter 24:23] 21 of 2001 have a limited scope in terms of the regulation of mobile money services in Zimbabwe. The Ministry of Finance and Economic Development launched the National Financial Inclusion Strategy (NFIS) 2016-2020 to provide impetus to the financial inclusion of the poor, unbanked and low-income earners in Zimbabwe. However, the NFIS appears to push more for bank-led financial inclusion than it does for innovation-driven initiatives such as mobile money services. This article highlights the positive influence of mobile money services in improving financial inclusion for the poor, unbanked and low-income earners in Zimbabwe. The article also seeks to point out gaps and flaws in the financial services regulatory framework that may limit the potential of mobile money services to reach more people so that they actively participate in the Zimbabwean economy. It is submitted that the Zimbabwean mobile money services regulations and the financial regulatory framework should be carefully amended in line with the recent innovations in mobile money to adequately regulate the use of mobile money services and innovative technology to address the financial exclusion of the poor, unbanked and low-income earners in Zimbabwe.

scholarly journals Determinants of Financial Capability: A Situational Analysis for Namibia

2022 ◽  
Vol 7 (6) ◽  
pp. 7-13
Author(s):  
Asa Romeo Asa ◽  
Johanna Pangeiko Nautwima
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Economic Inequality ◽  
Financial System ◽  
Financial Inclusion ◽  
Situational Analysis ◽  
The Poor ◽  
Development Agenda ◽  
Wide Range ◽  
Ease Of Access

It is imperative that if the poor in society benefit from the massive developments in the financial sector, then such a sector must be genuinely inclusive. It should meet the needs of all citizens with the potential to use such financial services productively. This paper scopes financial inclusivity as a process ensuring ease of access, availability, and usage of financial services by all members of society. To reduce socio-economic inequality, the poor in developing countries, like everyone else, need access to a wide range of financial services that are convenient, flexible, and reasonably priced. Therefore, financial inclusivity is sought to be significant towards the global development agenda as a tool for increasing the poor’s access to financial services, often cited as a mechanism that can help reduce poverty and lower income inequality. For many years, microfinance has been heralded as a mechanism for enhancing financial inclusion. It provides an avenue through which the marginalized and the poor can access and benefit from the formal financial system. Moreover, financial inclusivity is substantially evident in the rural areas among the poor, who have no collateral or credit history for participating in the legal financial system. As a result, financial inclusion is receiving increased attention as an essential tool for reducing aspects of socio-economic inequality characterized by the isolation of individuals and communities from formal financial services, like affordable and accessible credit.

scholarly journals Impact of Microfinancein Promoting Financial Inclusion in Nigeria

2015 ◽  
Vol 3 (2) ◽  
pp. 139
Author(s):  
Emeka E. Ene ◽  
Udom A. Inemesit
Keyword(s):  
Rural Areas ◽  
Unit Root ◽  
Unit Root Test ◽  
Regression Method ◽  
Financial Inclusion ◽  
Spurious Regression ◽  
The Poor ◽  
Rural Dwellers ◽  
The Impact ◽  
Financial Environment

<p><em>Despite the Central Bank of Nigeria’s (CBN) initiatives to encourage banks to extend their services and facilities to rural areas, a high percentage of the rural dwellers still remain unbanked and as such, the initiatives appear not to promote financial inclusion services among the poor in Nigeria. As a result, small entrepreneurs often lack enabling financial environment to grow. The study undertakes an empirical analysis of the impact of microfinance in promoting financial inclusion in Nigeria between 1990 and 2014 using OLS regression method. Unit root test was conducted on the variables to examine their level of stationary to avoid spurious regression results. The findings showed that minimum deposit amount have a positive and significant relationship with saving. It was observed that access to microfinance minimum deposit amount has significant effect on savings account opened by rural dwellers. Microfinance interest rate was however found to have a negative and insignificant relationship with the rural dwellers loans and advances.</em><em> </em><em>Recommendations were made among which are that Government should facilitate microfinance branches close to the rural area, products and services accessible to a large segment of the potentially productive Nigeria population, who are currently not being served by the formal financial sector.</em></p>

scholarly journals A Study on Women Empowerment of Self Help Groups in Thoothukudi District

2021 ◽  
pp. 108-114
Author(s):  
Dr. V. Sangeetha
Keyword(s):  
Rural Areas ◽  
Women Empowerment ◽  
Economic Activities ◽  
Self Help ◽  
Group Members ◽  
Four Blocks ◽  
Self Help Groups ◽  
The Impact ◽  
Self Help Group

This study examines the women empowerment of self help groups in Thoothukudi district. It aims to analyze the demographic profile of the respondents and characteristics of the Self Help Group members and to evaluate the impact of service quality of SHGs. The data collected from 125 respondents selected using random sampling method covering the villages of Ottapidaram, Pudur, Vilathikulam and Kayathar. It concluded that the economic activities of SHGs are quite successful. In this way, SHGs in four blocks from Thoothukudi District were very successful in women empowerment in rural areas and poverty alleviation.

scholarly journals The Impact of Micro Finance on Rural Households

2015 ◽  
Vol 1 (1) ◽  
Author(s):  
Taramol K.G.
Keyword(s):  
Economic Development ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Rural Poor ◽  
Rural Credit ◽  
Self Help ◽  
The Poor ◽  
Banking Institutions ◽  
Self Help Groups ◽  
The Impact

Micro Finance has become one of the most effective instruments for economic development of the poor. Expansion of rural credit delivery system since 1947 has not changed the dependence of the poor on money lenders ad commission agents. The dependence of the rural poor on non-institutional sources of credit is one of the causes that perpetuate their poverty. The poverty alleviation and government sponsored schemes in banks have problems in implementation, with more Non Performing Assets than of other schemes and therefore failed to deliver the expected results. Thus the rural banking institutions are out of step with changing rural credit. The situation necessitated the formation Self Help Groups for enabling the poor to participate in the process of development. Micro Finance or Micro credit for the poor and women has received extensive recognition as a strategy for poverty reduction and for economic development. Micro finance aims at organizing people particularly around credit and building capacities to manage money. The focus is on getting the poor to mobilize their own funds, building their capacities and empowering them to leverage external credit.

scholarly journals Measuring The Impact of Credit on The Welfare of Rural Farmers in Akwa Ibom State, Nigeria

2021 ◽  
Vol 2 (1) ◽  
pp. 32-38
Author(s):  
Nsikak-Abasi Etim ◽  
Glory Edet
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Sampling Procedure ◽  
Farm Size ◽  
Farm Income ◽  
Rural Farmers ◽  
The Poor ◽  
Multistage Sampling ◽  
Capital Development ◽  
The Impact

Majority of the poor in Nigeria lack access to basic financial services which are a sine qua non for improved livelihood. In most cases, they are often excluded from formal opportunities for financial services leaving them only with informal alternatives. But credit availability to the poor in the rural areas is critical to reducing poverty. An empirical study was conducted to measure the impact of agricultural credit of the welfare of farmers. Multistage sampling procedure was employed to select the farmers. Questionnaires were employed to collect data. Multiple regression analysis and chow test were for analyses. Results revealed that the mean age and years of education of farmers were 12 and 31 years respectively. Findings also showed that the most critical factors impacting the welfare of farmers were marital status, marriage type, educational level, farm size, off-farm income, labour, type of enterprise, labour and access to modern farming inputs. Policies to encourage human capital development of rural farmers would be a rational decision.  

scholarly journals FINANCIAL INCLUSION AND PERFORMANCE OF MICRO, SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA

2017 ◽  
Vol 5 (3) ◽  
pp. 104-122
Author(s):  
Bassey Ina Ibor ◽  
Amenawo Ikpa Offiong ◽  
Enyeokpon Samuel Mendie
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Small And Medium Enterprises ◽  
Design Method ◽  
Financial Inclusion ◽  
Easy Access ◽  
Chi Square ◽  
Access Points ◽  
Medium Enterprises ◽  
The Impact

Financial inclusion assures easy access to financial services by enabling the disadvantaged and vulnerable sections of the society to actively contribute to development and protect themselves against socio-economic shocks. Nigeria has a sizeable rural poor population with limited access to conventional financial institutions or services. This study investigated the impact of financial inclusion on the micro, small and medium enterprises (MSMEs) performance in Nigeria. The survey research design method was used, involving the use of questionnaires, in collecting data from respondents. Data were analyzed using the Pearson Chi-square technique. The results show that, whereas financial inclusion positively and significantly impacts the operations and growth of MSMEs, distance to financial services access points and infrastructural deficiency challenged fast and effective access to financial services by MSMEs in Nigeria. The study recommends that deliberate efforts should be made to spread access points to more rural areas and improve infrastructure to promote FI. This should include a policy roadmap for expanding financial services access points to unbanked and underserved areas using the financial services geospatial map. Furthermore, the digitizing of payments across the country should be prioritized to include enhanced ICT/E-banking tools and a consumer protection framework.

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