The Hindu Business Line : Empowerment through micro-finance

This has the reference to the article, `Not-so-creditable on micro-finance' (Business Line, November 21). The major lacuna in mobilisation and dispensation of micro-finance in India is its implementation as `developmental scheme of Government', whereas the main reason for its success in Bangladesh is its translation of the concept in field as a people's `movement'.

The informal relationship amidst SHG members, especially among the women, is the strong basis for its successful functioning.

Such a relationship cannot be enforced through bureaucratic fervour or, rather, the lack of it. Without understanding this phenomenon and without shedding the commercial banking overtone, introducing any amount of regulatory and legal guidelines will not bring success in the micro-finance area.

Usually, reform measures meant for social advancement bring economic prosperity as a consequence, especially among the women.

But through micro-finance, the economic empowerment of women will bring higher social status to its membership and, thereby, to society.

A dedicated commitment to the cause of and involvement in the implementation of micro-finance on the part of micro-financing bankers (PSBs &RRBs) will definitely shift their image from being a mere `credit input delivery outlet' to becoming `empowerment centres' by reaching the masses in remote rural areas.

V. Kumaresan

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Empowerment through micro-finance