ACTION RESEARCH IN NRLM RESOURCE BLOCK FOR SOCIAL MOBILIZATION AND FINANCIAL INCLUSION IN UTTAR PRADESH

1. MANAGEMENT TRAINEESHIP SEGMENT
“Action Research in NRLM Resource Block
For Social Mobilization And
Financial Inclusion”
KIIT SCHOOL OF RURAL MANAGEMENT, BHUBANESHWAR, ORISSA

2. 2
NATIONAL RURAL LIVELIHOOD
MISSION (NRLM)
 Universal Social Mobilization
 Participatory identification of poor
(PIP)
 Promotion of Institutions of the poor
 Strengthening all existing SHGs and
federations of the poor
 Emphasis on Training, Capacity
building and skill building
 Universal Financial Inclusion
 Revolving Fund and Community
investment support Fund (C.I.F)
 Provision of Interest Subvention
 Funding Pattern
 Phased Implementation
 Intensive blocks
 Rural Self Employment Training
Institutes (RSETIs)
UTTAR PRADESH STATE
RURAL LIVELIHOOD
MISSION (UPSRLM)
 Enabling the States to formulate their own
State specific poverty reduction action plans
 Enables the SRLM to professionalize
their human resources at State, district and block
level
 Creating linkages with livelihoods
opportunities for the poor
 Partner institutions like NGOs
 All blocks in the country will become
intensive blocks over time
 Women SHGs and their Federations
 Financial Assistance to the SHGs
 Capital Subsidy has been discontinued under
NRLM
 Supervision and monitoring of the Scheme
INTRODUCTION

3. 3
Financial & Capital Services
Human and
Social Capital
(Leaders, CRPs,
Community Para-
Professionals)
Dedicated Support
Institutions
(Professionals,
Learning Platform
M & E Systems)
Institutional
Platforms of Poor
(Aggregating and
Federating Poor, Women,
Small & Marginal Farmers,
SCs and STs)
INNOVATIONS
Livelihood Services
Building Enabling Environment
Partnerships and Convergence

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5. 5
SGSY and NRLM
SGSY NRLM
DRDA as main implementation
agency with very limited role at
State level
Dedicated professionally managed
support organization from State to sub-
block level to mobilize poor and nurture
their institutions
Community institutional
architecture comprised of only
SHGs
While SHGs remain the basic unit, higher
order structures like SHG federations,
producer organizations are planned for
last mile service delivery and market
access
Income generation focus of
SHGs
Scope to address multiple dimensions of
poverty – assets, skills, incomes,
consumption and risks (including food
and health risks)
Economic activity focus on
investment in common assets
and activities
Economic activity focus for provision of
support services and aggregation for
access to markets

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7. 7
OBJECTIVES
OF THE STUDY
Social Mobilization
 To map out and study the SHGs
(promoted by SJGSY,NGO or other
institutions ) in the resource block.
 To do Social Mobilization of
people residing in resource block using
PIP approach along with NRLM
guidelines.
Financial Inclusion
 To know the problems being faced
by NGO, bank & SHGs.
 Suggestions for Role of financial
inclusion through Self help group
 To Study the linkage of SHGs
with Nearby banks for Financial
services.

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 Financial constraint.
 Response rate is low.
 Quality of data (authentication)
 Quality of interviewing.
 The climatic conditions are not favourable.
 Researchers error (sample bias & confounding factors).
 Government Officials (block office) support was very discouraging.
RESEARCH LIMITATIONS
Social Mobilization and Financial Inclusion
The study was confined to Hardoi district of Uttar Pradesh state covering only
two Gram Panchayat (AHIRORI & KHAKHEDA) with 13 villages.

9. RESEARCH METHODOLOGY?
9

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Primary Data Collection
 Household & SHG Survey
 Group Discussion
 Personal Interviews
INTENT
 To know about SHG, and their
current status
 To know the perception of villagers
regarding women SHG
 Reason behind deformed SHGs
 Role of Banks & Block
Secondary Data Collection
 Block Office, NGOs record books
 Previous reports & Studies
 Websites
INTENT
To know no. of SHGs, and their current
status
 Active or Non-Active SHGs
 Reason behind deformed SHGs
 Role of Banks & Block and NGOs
 To find out Households and BPL list
Tools used: Structured Questionnaire, Group Discussions, Interviews and Observation
RESEARCH METHODOLOGY
RESEARCH DESIGN: Exploratory Research Method
DISTRIBUTION OF LOCATION FOR SURVEY
AHIRORI: Ahirori, Ekghara, Bhanwarja, Nara Purwa, Vayas Purwa, Niranjan Purwa
KHADAKHEDA: Khadakheda, Umari, Baleha, Sarainya, Khapra, Farkan purwa, Dali purwa

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SELECTION OF THE RESPONDENTS
Gram Panchayat: Ahirori
Sl. No. Village/ Majare Total Households Sampled Households
1 Ahirori 355 79
2 Niranjan Purwa 120 27
3 Vayas Purwa 54 12
4 Nara Purwa 83 18
5 Bhanwarja 78 17
6 Ekghara 210 47
Total 900 200
Gram Panchayat: Khadakheda
Sl. No. Village/ Majare Total Households Sampled Households
1 Khadakheda 920 107
2 Umari 286 33
3 Baleha 96 11
4 Sarainya 112 13
5 Khapra 264 31
6 Dali purwa 20 02
7 Farkan purwa 20 02
Total 1718 200

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Gram Panchayat: Ahirori Gram P. : Khadakheda
SELECTION OF SHGs for Group Discussion
Total Sampled SHG = 17
For our research study we prepared three types of questionnaire, one for HHS
(Household Survey) Another for SHG (Self Help Groups) is to know how women
are performing And third questionnaire was for Bank to know financial activity of
respondents.
Sample Size (SHG survey)
S. No. Location Target
1 Ahirori 08
2 Bhawarja 02
Total Sample Size 10
Sample Size (SHG survey)
S. No. Location Target
1 Khadakheda 05
2 Khapra 02
Total Sample Size 07
QUESTIONNAIRE DESIGN

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STUDY FINDINGS
S.NO VARIABLE
AHIRORI KHADAKHEDA TOTAL
No. % No. % No. %
1 Regular Meetings 7 70 6 85 13 76
2 Regularity of Savings 7 70 7 100 14 82
3 Internal Lending YES YES
4 Need based loans 3 30 0 0 3 17
5 Equal Distribution 10 100 7 100 17 100
6 No Lending 7 70 7 100 14 82
7 Book Keeping YES YES
8 Good 6 60 5 71 11 64
9 Average 1 10 1 14 2 11
10 Poor 3 30 0 0 3 17
11 No Leadership Rotation 10 100 7 100 17 100
12 SHGs Bank Linkage 10 100 7 100 17 100
13 Avg. Idle Fund (Rs.) 6491 4888 5764

14. Social Mobilization using PIP Approach
Gram Panchayat : Ahirori
(a) Occupation/ Source of Income:
0
20
40
60
80
100
120
140
160
180
174
7
28
112
76
15
0
Farmer Homemaker Artisan
Agri-Labour Non Agri-Labour Student
Others
 Dependence on
farming
 Landless and marginal
farmer depended more on
agri and non agri- labour
 No industrial zone in
near by area
 Artisan at a marginal
rate but potential to grow
Source: Primary Data

15. (b) Card Holder Details :
 Population of No Card Holders
more Although their names listed
in BPL 2002 Census list
 BPL Card Holder less
 No land ,No Pacca House and
No job but still come in No card
Holders
(c) Average Monthly Income:
 Population dependent on Agri
and non agri labour more
 No Financial support from
Bank and Block
 Illiteracy
16%
43%
41%
Card Holders Details
BPL
APL
No Card
0
100
200
16
166
12 4 2
0-1000 1001-5000 5001-10000 10001-20000 20001 & Above
Source: Primary Data
Source: Primary Data

16. (B) SOCIAL MOBILIZATION AND FINANCIAL INCLUSION
(a). SHGs Working Status:
SGSY
2 2 2
1 1
SGSY SHGs Working Status
Bhootnath Gayatri Jai shri ram Shri balaji Durga
RGMPV
1 1 1 1 1
RGMPV SHGs Working Status
Ekta Mahilla Durga mahila Roshni Mahilla
Ekta Mahilla2 New Roshni
 Two SHG’s Balaji and Jai Shri Ram are active in the SGSY yojna till now. But, still not
get 1st Grading from bank.
 Two SHG’s Bhootnath and Gayatri , worked from the year 2002 and closed on 2012-13 .
Both SHG’s done their 1st & 2nd grading .
 In RGMVP , All SHG’s are active and participatory in nature.
 In RGMVP, No SHG’s done their 1st & 2nd Grading .
Yes-1 , No-2
Source: Primary Data

17. (b) Organizations promoted the SHG:
0
5 5
0 0
SHG Promotion
Bank/Financial Institution NGO(RGMVP) Govt. department(SGSY)
Cooperative society Any other
 Two Institution ,one
Government SGSY and
another RGMVP NGO,
Promoted the SHG’s .
 RGMVP SHG’s working
Better on capacity building
approach .
(c) Educational Status:
Illitrate 1st - 5th 6th - 8th 9th -
10th
11th -
12th
Above
12th
37
8 5 3 2 1
49
5 1 1 1 2
Educational Status
SGSY RGMVP
 Only Three Members
educated above 12th One
done M.A. and Two B.A
 Illiterates in Gram
Panchayat at very high rate
Source: Primary Data
Source: Primary Data

18. (d)Training details of SHG:
(e) Inter- Lending for activities:
0
1
2
3
4
5
Emergencies Agriculture Animal
Husbandry
Income
Generations
Any Others
Inter Lending
Emergencies Agriculture Animal Husbandry Income Generations Any Others
Max
Min
Inter lending loan maximum
for agriculture as it is prevalent
and well known practice among
villagers .
 Minimum in income
generation activities as they not
get capacity building training for
that .
0
2
4
6
8
10
10
6
4
7
Training
SHG
Health
Skills development
Livestock
 Training on Livestock, skill
development and also on health
is socializing the members .
 Capacity building provided
them for make them capable in
their activities .
 Capacity building on skill
development lead them towards
more awareness .Source: Primary Data
Source: Primary Data

19. Social Mobilization using PIP Approach
Gram Panchayat : Khadakheda
(a) Occupation/ Source of Income:
 Dependence on farming
more
 Landless and marginal
farmer depended more on agri
and non agri labour .
 No industrial zone near by
there .
 Artisan at a marginal rate
but potential to grow
8
1
25 9
94
69
0
OCCUPATION
Farmer
Homemaker
Artisian
Agri-labour
Non agri-labour
Student
Others
Source: Primary Data

20. (b) Card Holder Details :
 Population of No Card Holders
more Although their names listed in
BPL 2002 Census list .
 BPL Card Holder less
 No land ,No Pacca House and No
job but still come in No card Holders
 APL Card Holder were Moderate .
 Those have BPL Cards but not get
food at the right time .
(c) Average Monthly Income:
 Population dependent on Agri and
non agri labors more .
 No Financial support from Bank
and Block .
 Education rate fall down
 No scheme benefited
 Unawareness among people more
.
0
20
40
60
80
100
120
APL BPL No Card
CARD HOLDER
APL BPL No Card
36%
56%
8%
0% 0%
AVERAGE MONTHLY INCOME
0-1000
1001-5000
5001-10000
10001-20000
20001 & Above
Source: Primary Data
Source: Primary Data

21. (B) SOCIAL MOBILIZATION AND FINANCIAL INCLUSION:
(a) SHGs Working Status:
 Eight SHG’s are active in the RGMVP yojna till now. But, still all not done 1st
Grading .
Six SHG’s are deformed but the reason behind this is either bank support or
coordination problem
 In RGMVP , inter-coordination problem leads conflict between females this
generally occurs when 1 member takes loan and does not repay it.
Yes-1 , No-2
2
2
2
2
221
1
1
1
1
1
1 1
SHG's Status
Maa Veshnu Swayam Sahayata Samuh Sabera Swayam Sahayata Samuh
Anokhi Swayam Sahayata Samuh Ekta Swayam Sahayata Samuha
Gomti Mahila Swayam Sahayata Samuh ganga Mahila Swayam Sahayata Samuh
Karya baba Swayam Sahayata Samuh Aarti Mahila Swayam Sahayat Samuh
Saraswati Mahila Swayam Sahayata Samuh Jagrati Swayam Sahayata Samuh
Khuda Gawah Laxmi Swayam Sahayata Samuha
Working-1
Not working -2
Source: Primary Data

22. (b) Organizations promoted the SHG:
0
14 0
0 0
SHG Promotion
Bank/Financial Institution NGO(RGMVP) Govt. department(SGSY)
Cooperative society Any other
 No Government Scheme
made SHG’s and only RGMVP
NGO , Promoted the SHG’s in
khadakheda .
 RGMVP SHG’s working
Better on capacity building
 RGMVP Guidelines are same
with NRLM .
 RGMVP is better approach .
(c) Educational Status:
 No Members educated 12th
and above 12th..
 Illiterates in Gram Panchayat
at very high rate . Specially
women are more
 This Illiteracy causes them
towards unawareness .
84%
11%
1%
2%
0% 2%
Educational Status
NIL
1st - 5th
6th - 8th
9th - 10th
11th - 12th
Above 12th
Source: Primary Data
Source: Primary Data

23. (d) Training details of SHG: :
 Training on Livestock, skill
development and also on health
is socializing the awareness
among members .
 Capacity building provided
them for make them capable in
their activities .
 Capacity building on skill
development lead them towards
more awareness .
(e) No. of transactions in Bank:
 Maya Mahila SHG’s done
more transaction with banks. Its
mean , this SHG is more active .
 More transactions with bank
leads show good inter-
coordination within members .
 More transaction with bank
lead them towards CCL quickly .
0%
20%
40%
60%
80%
100%
On SHG Skill
develop
ment
Livestock Health
No. of Members 2 1 3 3
Duration 3 8 7 5
Training details of SHGs
8
4 2 1
13
4 6
No. of transactions in Bank
Source: Primary Data
Source: Primary Data

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ROLE & MOTIVES OF STAKEHOLDER’S
Financial
Institution NGO’s BanksIncentives Guidance
Approach for Loan
S
H
G’
s
Approval for Loan
Interest for Loan
Economy
Incentives
Income
Interest

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Marginal Farmers
Landless Farmers
Oral Lessees
Self Employed
Migrants
Women
Minorities
Women
Social excluded groups
Senior citizens
Who are excluded ?

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 SHG's made by the NGO (RGMVP) are working in a much better than
SGSY SHG's.
 Not providing as such any training to SGSY SHG's was one of the main
reason of mismanagement.
 Due to this, women's showing reluctance towards NRLM Scheme.
 Most of People in villages does not aware with the new government
schemes , which lead them towards more poverty.
 Women does not have freedom of speech and action.
 Due to illiteracy no one takes interest in knowing new things regarding
schemes.
IMPLICATION AND LESSION LEARNED

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RECOMMENDATION & SUGGESTIONS
1. SHG Formation - The target approach to group formation need not be adopted rigidly.
Officers should have the time to ‘nurture’ the groups once the names of members have been
collected.
2. Grading - Financial targets as well as grading targets should be increased to include left
over groups before they loose hope and get defunct like many others.
3. Loan/Financing - The current limits should be immediately revised. Moreover loan
financing should be done at lesser rates of 6%-7% as in case of KCC and if possible interest
subsidy should also be given.
4. MIS - Proper monitoring of groups needs be done at various stages of their growth. A
centralized MIS should be created through which the status of each and every SHG in the
remotest part could be monitored.
5. Training - It is essential to draw up a training plan according to the specific
requirement of each group. It should be made sure to provide training only for the
activity being undertaken or willing to be performed by the group, not any other
6. Shortage of Staff - The number of officers/ADOs needs to be increased. No other
work except implementation of NRLM should be given to ADOs.

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Continued…..
7. Economic activity - SHG's members need not be pressured in the matter of choice
of economic activity. Rather they should be provided guidance in terms of viability or
sustainability of a particular activity depending on available resources and market.
8. Financial Services - Accountability of Banks needs to be set. Unless and until it is
done this scheme can never produce results. Since bankers are also pressurized
under their work, separate Bank employees specifically working for Government
policies should be appointed.
9. Marketing - Market survey as an important component especially of group activities
needs to be stressed. Marketing survey should be conducted for each and every
possible economic activity in the rural areas to know about the demand patterns of
various products.
10. Float of Funds: The funds which is demand driven by the SHG can be submitted to
village federation, they will look after it and than the proposal is forwarded to block
federation, they will finalise it and send the same to the bank. This framework will
help the in making healthy bank relation and also reduce the bank issues faced by
SHG members.
11. Awareness: The villagers does not have any source of getting information regarding
schemes. Through this programme this issue can be solved out by giving
responsibility to some field workers of demonstration schemes and it benefits.

29. 29
Continued…..
12. Monitoring and Evaluation: This is the backbone of any programme to
achieve success. The team of people can be given this job which will help to
look after SHG situation and the feedback on it will help to bring necessary
changes to make it successful.
13. Marketing - Market survey as an important component especially of group
activities needs to be stressed. Marketing survey should be conducted for
each and every possible economic activity in the rural areas to know about
the demand patterns of various products.
14. Miscellaneous - A programme such as NRLM is not enough to pull the poor
out of their poverty without a holistic package of inputs. In addition to the
credit programme, they must be supported by at least two welfare
programmes of social security and public distribution.

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For the Groups~
 The groups studied rate high on quantity parameters like
savings, lending and bank-linkage, but score a depressing
low in terms of quality parameters.
 High levels of distrust: A cause for equal distribution of
funds and conflicts as a consequence.
 Lack of direction and guidance: A cause for increasing
number of defunct groups
For the SHG- Bank Linkage~
 Stress on optimum savings to extend loans leading to high
idle funds in the groups.
 Bankers insists that the bank loan be treated as a separate
entity to ensure prompt repayment.
Conclusion

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PRESENTED BY:
Prachi Mishra (12201029)
Banbasi Sinku (12201008)
Anoop Kr. Mishra (12201005)
Sudhir Kumar (12201038)

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