Microfinance and development agency(MYRDAN), Professional assistance for

Microfinancein india: Indian banking system is the biggestbanking networks among the world but its did not contact most of rural areas inIndia. About 68.84 percent of the Indian population belongs from rural areasand only 38.

7 percent banks branches have in rural areas. The banks did notfulfill the credit requirements of the poor and they were forced need to fallback on moneylenders for credit. The traditional rural credit system has notbeen successful in India, however its long existence and various interventions,in reaching the need section of the society.In recent years, microfinance has provedan effective instrument in improving the quality life, decision-making andliving standards of the poor. The microfinance schemes and various approaches havepracticed by both non-government and government organization in India. In Indiamany landing finance institution viz. NABARD, Small Industries Development  Bank of India (SIDBI) and Rashtriya MahilaKosh (RMK) have played a significant role in making a real moment tomicrocredit in India.

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Self Employed Moment Association (SEWA), Mysore Resettlementand development agency(MYRDAN), Professional assistance for development action(PRADAN), International centre for entrepreneurship and career development(ICECD); act as a resource organization successful in other part of the countrywithout restricting to one area.The establishment of self –employedwomen’s Association (SEWA) was in Gujarat in India. It was first initiative ofmicrofinance by the india. SEWA had registered in 1972 as a trade union of self-employedwomen worker of unorganized sector.

After that, SEWA trade union establishedtheir bank in 1974 that had known SEWA bank. After some time this bank hasregistered as a co-operative bank which has been providing service (banking) topoor women.The government has considered enhancingallocation funds for provision of health, educations, insurance, sanitation anddecision-making and capacity making and well being of poor. The aim of behindthe development of banking sector was to provide help to poor to stats theirmicro enterprise at lain self-sufficiency.(mahanta padmalochan, panda Gitanjaliand kumar sree, 2012, status of microfinance in india- a review, IJMGS , Vol. I Issue II Nov.

(3a))In India, govt. had also launched differentpoverty reduction programmes viz. Small Farmers Development Scheme(SFDS)1974-75,National Rural Development Programmes(1980) NRDP, Integrated Rural DevelopmentProgramme (IRDP)1980, Rural Landless Employment Guarantee Programme (RLEGP)1983, Jowhar Rozgar Yojana (JRY)1989, Swarna Jayanti Gram Swarojgar Yogana(SGSY) 1999 and many other programme. (3a)However, not a single programme fulfillstheir desired goal, because in the part of government official like executionand malpractices is very deprived. Nevertheless, as a supplement the endeavorof micro-credit had started a good scheme in India viz.

IRDP in 1980, that wasachieved little but the basic problem of IRDP was that its intend incorporateda substantial component of subsidy and the resulted that the funds wereextensive mismanagement and miss utilization. So that, estimates of refund ratein IRDP ranged from 25-33%. After that, ‘the world’s largest microfinanceprogramme’ failed due to political interference and poor execution. Subsequently,these programmes suffered from lack of bank credit, critical investments andlack of market linkages. These programmes had based on subsidy ambitious andignored the process of social intermediation that was necessary for success of SelfEmployment Programmes. For the review of Self-Employment and Wage Employment Programme,the planning commission constituted a committee in 1997s and the committeerecommended that all Self-Employment Programmes should be merger and shift fromindividual beneficiary approach to a group based approach. The government of Indiaaccepted the committee recommendation and on 1st April 1999 a newprogramme ‘Swarnajayanti Gram Swarojgar Yojana’ (SGSY) was launched by the amalgamateprogramme viz. TRYSEM, IRDP, DWCRA, SITRA, GKY, MWS.

This holistic programme wascovering all aspects of self-employment such as formation of SHGs, credit, training,infrastructure, technology and marketing. SGSY programme is a credit –cumsubsidy programme and its emphasis on activity clusters. The SGSY programmesaims to establishing a huge number of microenterprise in rural areas. Finally,this programmes has got significantly response from the beneficiaries.

The SGSYconceived as a holistic programme of microfinance enterprise development inrural areas with emphasis on organizing the rural poor into self-help-groups,planning of activity cluster, Capacity building, technology, infrastructuresupport, credit and marketing linkages. The programme has inbuilt safeguardsfor weaker sections and is credit motivated. In a network of agencies areincluding namely the ‘District Rural Development Agencies’ (DRDAs), LineDepartment of State Government, bank, NGOs, and Panchayti Raj.

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