micro finance, transparency ...what are we talking off ........., who are the clients . lets put feet on the ground

1. Transparency
&
responsible pricing !!
Dr B S Suran
General Manager
NABARD

2. Transparency !!
Client & Institutional
Capacity willingness

3. Transparency !!
What it does ?
Why
How
Benefits
Improve trust
Increasing understanding
Drive performance
Motivate

4. Some facts.. abt the people we
deal with…
Is Rs 13*7= Rs28 ? Yes,for the poor its
ADD
Multiply Divide 13
13 * 28 /7 13
7
13
21 1,3 13
7
13
28
13
13
-------
21 +
….that’s what they were told 7
28

5. How do we enable: client level
• No easy solutions…..
• Gap is large: “charged vs paid”
• Poor appreciate when said in their terms !!
• Passbooks: with ROI , weekend balances
• Bits and Pieces or wholesome ?
• Need for a iterative process !!
• Use of mobile, voice recorded messages
• Thus; education is the key : financial
literacy is an enabler for …better financial
access

6. At the institutional level
• Passbooks, Printed repayment schedules
• Contain information on contact person for
complaints, redressal system,
• Ombudsman
• Declare base rates / break even rates
• Annual reports- mandatory disclosures,
third party audits ??
• Lender responsibility ??
• Appreciate that transparency is a
precursor for strengthening trust

7. Some attempts to improve
FL …in Gujarat
• SHG Bank Linkages – basic efforts literacy,
numeracy,saving / thrift , loaning, leadership, conflict
resolution, bookkeeping, general awareness etc
• Publication of pamphlets on FI
• Video on debt swaps , OTS etc
• Weather insurance…model insurance
village with a AWS –
• Farmer education . RML cards- fin literacy
• Efforts in FL in VDP villages ..

8. Thanks for your time
Email: suranmcid@gmail.com
bs.suran@nabard.org