Micro-Finance and Rural Poor: A Case of Stree Nidhi Initiative

Abstract

Inclusive growth is an important component of development to mainstream the excluded sections of the society for promotion of equitable growth. Micro finance would enable and shows the effective path for reaching the poor. The Government of India and Reserve Bank of India have taken measures to facilitate financial services for the poor for inclusive development. The reforms and approaches taken up by the Government to induce competition in expanding outreach by providing small loans and services to the poor. Micro-financial services and its delivery to the poor is widely discussed and watched by many developmental professionals. In this context, technology plays an important role to increase the outreach to massive numbers. The cost effective and efficient technology under Digital India programme facilitating the internet services to the poor people in the remote areas of the country. The present paper focuses on the credit delivery of micro finance services of Stree Nidhi at door step of poor members of SHG through IVRS mode. IVRS solution enables village Organization of SHG to send loan request and access the loan amount directly through bank account of SHGs. The loan sanction and appraisal through IVRS and Web portal are communicated to SHG members through SMS. Further the paper focuses on ascertaining the awareness levels of SHG members on financial services and perception towards IVRS mode of credit delivery. The data was collected through questionnaire and Focused group discussion with SHG members in Medak district of Telangana state. The finding of this research revealed that the SHG members are appreciating the IVRS mode credit delivery. However, they are not having required awareness on availing the financial services through Debit Credit, unable to read the SMS because of lack of basic literacy and financial literacy.