The Hindu Business Line : Smart bank for women

The Mann Deshi Mahila Sahakari Bank (Mann Deshi Women's Co-operative Bank) was the first poor women's bank in the country to get a licence from the Reserve Bank of India in 1997. Started by self-help groups (SHGs) across Mann Taluka, Satara district, off Western Maharashtra, the bank today has a capital of Rs 42 lakh and four computerised branches. No mean achievement, considering that most of the account holders live in drought-prone areas.

The idea for the bank was initiated by the Mann Samajik Vikas Sanstha (MSVS), an NGO working with poor, illiterate rural women in the drought-affected areas of Satara.

In most villages, severe drought and lack of employment opportunities forced men to migrate to the cities. Thus, the entire burden of the home and hearth fell on the women.

The women's major concern was the lack of income-generating assets. In the agrarian and entirely rain-dependent economy of the district, most men and women work as daily wage labourers in agricultural fields. During drought, no farming takes place, and the workers are left with no employment avenues.

On paper, the Government has a system for water-sharing but, in practice, politically powerful persons in the district ensure that this water is diverted for their use.

Besides, access to funds was severely restricted, as the mainstream banks did not consider low income-earning women as potential customers. In times of crisis, most women were forced to borrow from the village moneylenders, who charged high interest rates. Many women and children were vulnerable to the vicious cycle of hunger and death.

MSVS first encouraged the women to collect Rs 5 or Rs 10 on a weekly basis. The amount was then lent to a woman to buy an asset (usually cattle). This helped her earn a steady income and save up some money for emergencies.

Today, there are about 300 SHGs, benefiting almost 6,000-7,000 families. The SHG movement has spawned several small entrepreneurs including street vendors, weavers, sheep/goat rearers and dairy product sellers.

Says Chetna Gala Sinha, 44, who led the bank initiative, and who was part of the Jayaprakash Narain movement in the 1970s, "I realised a movement was necessary to bring about a change in policy decisions at the macro level. To improve lives in the villages, what was required was activity at the grassroots level. The aim was to understand the problems faced by the villages and find solutions tapping the collective strength of the women."

What made it possible? Perseverance and determination to break conventional barriers in a simple but effective way, says Chetna. She recounts the women's determination in convincing RBI officials to grant them a licence to start banking operations. "We understood the RBI's dilemma in giving a licence to a group of illiterate women who would use a thumb impression instead of a signature. But we took a team of women to meet the officials to convince them of our problems. Fortunately, they could also gauge the women's potential." The licence to run the operations in Satara, Sangli and Sholapur was granted in 1997.

Chetna says with pride, "Our NPAs (non-performing assets) are only 2.81 per cent, and for a bank working on a no-profit philosophy, we had a healthy profit of Rs 1.4 lakh in 2004-05. The bank reaches out to over 24,790 families, who are its saving members."

The bank's savings schemes have been designed to take advantage of the weekly wage payment. Daily loans are available for buying vegetables or fruits.

The credit-in-kind scheme is also on offer, where instead of giving a loan to buy a product, the product is bought by the bank and then lent out to the account holder. This scheme was started after women complained that the loan money they took home to buy a product was used up by the men in the house for drinking.

The bank also has a bicycle scheme for girl students who travel a good distance to attend school and cannot afford public transport. Says 12-year-old Maya Kalele from Prayanti village, "I have passed my seventh grade and had to travel to another village for the eighth grade. My parents were going to remove me from school because there is no bus facility to that village. However, the bicycle we bought with a loan from the Mahila Bank has helped me continue my schooling."

The bank recently launched a gold loan scheme, offering loans to buy gold ornaments or giving loans against gold ornaments. As Chetna says, "Gold is an ornament for the rich, but for the poor it is a fall-back asset."

A major problem faced by most women was harassment by husbands who wanted their passbooks to have control over the money. However, the women found a way out: they now use smart cards instead of passbooks. The bank's success lies in the tales these women recount. Nakus Doltade, wage labourer and Director of the SHG federation, says, "Grants and subsidies did not improve my life, but a reliable bank like the Mahila Bank did."

Vandana Sazgane, a woman from the shepherd community, who is a shareholder and client of the bank, says, "I rear sheep and goat, and my husband and I are away for four months during the rearing season. During this time, my mother-in-law looks after our children. A cell phone loan has helped me to be in touch with the children."

These women are not only more confident today, but they also operate their saving accounts, possess assets, are joint owners of property and own animals in their name.

In 2004, the bank convinced the Revenue Department of Maharashtra to include the woman's name on stamp papers for joint registration of immovable property. This means her husband can neither sell the property without her consent nor claim the entire property as his own in case of a divorce.

Although run entirely by women, the bank also encourages men's participation. Chetna says, "Men who invest in their daughter's education or go for joint registration of property are given awards. There is a Government scheme called Savitri Bai Puraskar, which is given to villages where all women are co-owners of property. The prize money is a sizeable Rs 40,000-50,000. This instils a sense of pride in the men and motivates them to apply for co-registration."

Women's Feature Service

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