women’s financial inclusion case study - the...

Women’s Financial Inclusion Case StudyPriority Sector Lending Programme in India

CASE STUDY

Priority Sector Lending Programme in India

4 \ Priority Sector Lending Programme in India

Author: Sharmistha Das Barwa

Acknowledgements: In addition to the author, the Commonwealth Secretariat acknowledges contributions from: Exim Bank, India, Joan Ross Frankson, Sarah Kitakule, Kathy Daniel and Chantelle Cummings (Gender Section), Commonwealth Secretariat.

© Commonwealth Secretariat 2015

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Introduction \ 5

IntroductionGender equality is one of the fundamental principles of the Commonwealth. It is incorporated in the Commonwealth Plan of Action (PoA) for Gender Equality (2005–2015) to respond to the differential impacts of global changes, especially economic, on women and men. The aim is to close existing gender gaps and identify innovative ways of dealing with emerging challenges. This is based on the commitment of the Plan of Action (PoA) to address the ‘four critical areas of action’ for achieving gender inclusive development through a change in asymmetrical gender power relations that define women’s and men’s equal access to opportunities. Of these, the access to economic opportunities is vital to develop women’s potential as active participants in equitable growth and is a major factor for promoting gender equality and women’s empowerment in a number of developing Commonwealth countries.

The concept of gender inclusive growth is multi-faceted and financial inclusion is one of its main building blocks that can challenge and change social institutions and discriminatory norms that deny women access to credit and financial services and keep them economically disempowered. The different strategies for improving women’s financial inclusion include the provision of appropriate and quality financing that is both accessible and affordable to overcome exclusionary financial practices of the formal financial sector. The attainment of gender inclusive growth in developing Commonwealth countries requires innovative financial instruments as crucial inputs for the promotion of gender equality and women’s empowerment.

One such instrument is direct lending or priority sector lending (PSL) which has often been used to channel credit at preferential rates to strategic sectors and vulnerable groups in developed as well as developing countries. This case study is based on the Indian Government’s priority sector lending schemes that were introduced in 1967 with the institution of social control on banks under the Banking Laws (Amendment) Bill. The primary

objective was to widen the spread of bank credit to previously neglected sectors and groups by providing priority in the allocation of credit and concessions in the terms and conditions of credit, including interest rates. This case study highlights the innovative financial instruments used in the government’s PSL schemes to increase women’s access to a range of financial services.

The case study traces the evolution of the government’s various initiatives to raise the income and standard of living of marginalised sections of society and the catalytic role of banks in promoting the government’s policy of financial inclusion.

The introduction of PSL schemes was mainly driven by the imbalance between non-institutional credit (in the 1950s this represented 92.8% of total agricultural credit) and institutional credit in the priority sectors due to the inability of small-scale farmers, entrepreneurs and other marginal borrowers to comply with the banking requirements of collateral, fixed interest rates and other strict conditions. There was a similar mismatch between demand and supply of credit in


other sectors such as industry and infrastructure. This felt need of credit in the key sectors led to the launch of the PSL schemes.

The first batch of PSL schemes directed funds to agriculture, small-scale industries, retail traders, small businesses and other sectors in which women were engaged in different roles. However, the prevalence of gender and class biases of society meant that credit was still earmarked for big businesses, mostly owned by men, and it was a missed opportunity for small-scale farmers and entrepreneurs, many of whom were women, who were not considered as viable clients by banks.

To reverse this situation, the government nationalised 14 major commercial banks in July 1969, which was a milestone in the history of Indian banking. The primary aim was to provide adequate and timely credit to small agriculturalists and entrepreneurs and promote a new class of borrowers by integrating them into the formal financial system. To ensure effective implementation of the PSL schemes a penalty was imposed on banks with a shortfall in lending to the identified priority sectors and they had to contribute to the Rural Infrastructure Development Fund (RIDF)1. The government prepared common guidelines for the banks on priority sector lending complemented by a robust reporting system to ensure efficient service delivery to vulnerable sections of society.

Despite these initiatives, the gender bias in the formal financial sector to advance credit to women continued. Further improvisations of the PSL schemes were needed to break the ‘vicious circle of poverty’ in which low income, high interest on debt from previous loans, lack of business infrastructure, capital, savings and assets kept the poor, the majority of whom were women, economically marginalised and impoverished (Commonwealth Secretariat, 2013). This was due to the disadvantaged position of women in society based on social norms that denied them access to financial resources and economic opportunities

1 Rural Infrastructure Development Fund (RIDF) was instituted in NABARD with an announcement in the Union Budget 1995-96 to provide low cost fund support to State governments and State Owned Corporations for quick completion of ongoing projects relating to medium and minor irrigation, soil conservation, watershed management and other forms of rural infrastructure. Source: https://www.nabard.org/english/GenesisRIDF.aspx (accessed 18 September, 2015)

and relegated them to a helpless state dependent on male members of the family. As a result, women’s credit needs were subsumed under the general credit conditions of PSL schemes which were often gender blind.

The second set of PSL schemes introduced a range of new and gender sensitive credit packages. These included a scheme linking women’s self-help groups and banks which was supported by the National Agriculture and Rural Development Bank (NABARD). NABARD and the Small Industries Development Bank of India (SIDBI) jointly supported refinancing schemes to smaller financial institutions which was a landmark development. This lead to a rapid rise in women borrowers and utilisers of different financial products that were easily accessible and affordable, contributing to women’s economic empowerment and gender equality.

This was not the first time that the government’s policies raised concerns about addressing the basic problems of women as an economically and socially deprived group. Ever since independence, the government had attempted to raise awareness about the role of women as critical and equal partners for national development. The Sixth Five Year Plan (1980-1985) presented a sharp break from the past by advocating for women’s empowerment and shared asset ownership between women and men, with property rights of women and the enforcement of wage laws. These efforts were strengthened in the Twelfth Five Year Plan (2012-2017) with one of the government’s priorities being to consolidate the existing interventions (including improved access to education and job opportunities, especially in the public sector) relating to the promotion of gender equality and empowerment of women and to proceed to address new gender-specific challenges in the health and infrastructure (transport) sectors.

The design and implementation of the different gender focused PSL schemes addressed some of these challenges and opened up new opportunities for women. The impact of these schemes extended beyond women’s economic empowerment to improved quality of life for their households and increased participation in decision-making levels on matters affecting their lives.

Introduction \ 7

Women’s ownership of productive assets is the ‘single most important intervention towards both empowerment and well-being.’

Ela Bhatt, founder Self Employed Women’s Association (SEWA), 1988, in Shramshakti on the working and living conditions of women in the informal sector: Report of the National Commission on Self Employed Women and Women in the Informal Sector

The objective of the PSL scheme was to extend the outreach of the banks to marginalised groups (especially women) to challenge and reform the discriminatory norms prevalent in the formal financial sector against women clients. This had the ripple effect of influencing social institutions that were perpetuating unequal gender roles and power relations. The case study traces the process involved in transforming women’s access to credit away from the stringent and selective lending norms previously adopted by banks. This was achieved through the government’s social control on banks with a directive to extend their delivery of financial services to sectors and groups that were outside their consideration zone for different financial reasons.

The case study highlights the significance of the PSL schemes in taking into account the borrowing limitations of women in support of the government’s policy to end financial exclusion. The result was an unprecedented number of novel financial products and services that integrated financially marginalised groups into the mainstream banking system. This had a dual impact: economically empowering women and also transforming the approach of banks towards lending. The banks were pushed out of their comfort zone to risk increasing the potential of those clients who are capable of taking loans and repaying them but cannot do so due to social institutions and discriminatory norms. The PSL provided women with opportunities to climb out of poverty, enhance their participation in social and political life and contribute to wider processes of development and inclusive economic growth. Finally, the case study provides an analysis of what works and why in the context of advancing gender equality and women’s empowerment.


1. Context of PSL and Introduction to Gender-sensitive Direct Lending Schemes

The first PSL schemes of 1967 that advanced credit on preferential terms and conditions to certain priority sectors had only a limited impact. Women still faced institutional challenges and discriminatory norms to accessing credit and other financial services. This was because the first raft of PSL schemes did not mention women as a special group. Even in the definition of ‘weaker section’ women were conspicuous by their absence. The gendered access to credit – fixed rate of interest without any concessional terms, insistence of banks on collateral for loan applications and the absence of need-based financial packages to address the specific requirements of women borrowers – prevailed even with the best intentions of the PSL schemes. Although women were concentrated in the informal sector, particularly in agriculture, household industries and services that were the targets of the first batch of PSL schemes, they could not benefit from the PSL concessions because the schemes were gender neutral and therefore did not consider how women may have been unintentionally advantaged or disadvantaged. Women’s inadequate access to assets adversely impacted their productivity in the absence of working capital and the vicious cycle of low investment and low returns continued.

Regarding the limited opportunities available in waged employment, women have been constrained by unequal access to education and training opportunities and lack of support. This has prevented them from increasing their participation in productive and remunerative activities. More serious were the ideological restrictions on women’s occupation or mobility driven by cultural and social norms whereby employers perceived women’s labour as less useful than that of men.

Cumulatively, these factors contributed towards the unwillingness of banks to consider women as creditworthy for lending under the PSL schemes.

This had a ripple effect on their households with a high incidence of poverty in women headed households, especially in the rural areas. The challenge was to attune some of the PSL interventions to the particular needs of women and provide them with opportunities to improve their quality of life.

The second set of PSL schemes was launched after the banks were nationalised in 1969. In addition, the government had introduced its 20-point programme, which included ‘equality for women’ as one of the focus areas. These two factors taken together indicated a clear approach to address the social institutions that perpetuated women’s subordinate position in society and restricted their access to productive resources and economic opportunities. The government used the new set of PSL schemes as a channel for directing investment through banks with specific shares earmarked for women. Whether directly or indirectly this approach had a significant impact on women’s access to credit and their development as powerful economic agents of change. The measures included:

• A 40 per cent allocation of adjusted net bank credit (ANBC) as mandatory lending to selected PSL schemes supporting small-scale farmers and entrepreneurs, both of which categories had a high percentage of women.

• Refinancing schemes such as the self-help groups bank linkage scheme with its record number of women beneficiaries;

• Interest rate subsidies that benefited women in particular;

• Credit guarantee schemes that addressed women’s collateral requirements;

Context of PSL and Introduction to Gender-sensitive Direct Lending Schemes \ 9

• Establishment of a development financial institution, Rahtriya Mahila Kosh, which provides specialised development credit for women, and;

• The creation of a women-only bank called the Bharatiya Mahila Bank (BMB).

There were also poverty alleviation programmes, PSL initiatives such as the Prime Minister’s Rozgar Yojna (PMRY)2, Differential Rates of Interest (DRI)3 and others.

With each successive review, RBI committees increased efforts to include women in the different PSL schemes. The RBI Review Committee of 2012 was a culminating point with a recommendation that the ‘scope of weaker sections … be widened by including priority sector lending loans to individual women.’

Theory of changeThe PSL theory of change for mainstreaming women’s credit needs is based on empowering women economically as both the means and the end. The provision of customised financial products and services to women is the most effective way of tackling gender inequality. The outcome of women’s affordable access to credit from formal financial institutions or their lending partners enabled them to build and expand their asset base, which is critical to challenging societal marginalisation. The process of change was reinforced by the mobilisation of women as an effective tool to challenge social institutions that curtailed their rights in accessing resources and opportunities. In this context, the changes targeted in the development of gender specific PSL schemes are as follows:

• Priority lending for poverty alleviation programmes to address the high incidence of poverty among women, (particularly rural women) a wide range of poverty alleviation programmes were identified as priority sectors. These programmes introduced

2 This PMRY scheme was launched by the government in 2003 to provide loans for self-employment opportunities for youth and women.

3 The DRI scheme was introduced in 1972 and applied to all-Indian Scheduled Commercial Banks who had to provide concessional rates of interest of 4 per cent p.a. to the weaker sections of the community for engaging in productive activities to improve their economic conditions.

special allocations to address the high concentration of poverty among women due to their lack of access to financial services.

• Direct interventions to increase women’s share of bank credit: Women’s restricted access to credit from formal financial institutions due to cumbersome and time-consuming loan processes, discriminatory inheritance practices that limited their collateral base and bankers’ view of women as a credit risk, changed in the wake of the RBI circular of 2000 setting banks a mandatory target of net credit to be allocated to women borrowers and reflected in regular progress reports to RBI.

• Establishment of women-exclusive development fund and bank: The Rahtriya Mahila Kosh (RMK) was set up to advance funds to non-governmental organisations (NGOs)and civil society organisations to meet women’s financial needs on flexible terms and conditions and the women’s bank, Bharatiya Mahila Bank (BMB) was set up to prioritise women’s credit needs.

• The shift in direction of bank credit packages including strategic partnerships with non-financial institutions brought about a change in the standard banking system of the time. Under state direction banks began to design a wide array of financial products and services with flexible arrangements and informal delivery mechanisms specially targeting women.

• Setting up financial literacy centres (FLCs) in banks to equip women and other marginalised groups with financial skills so they can conduct banking transactions independently.

The common theme of the changes mentioned above was an understanding of women’s need for collateral-free, flexible, small and timely credit to meet both their consumption costs and business demands. Women’s improved access to economic opportunities addressed the unequal gender power relations within households and communities. The shift in social dynamics enabled women to achieve personal empowerment and professional advancement, which encouraged them to participate actively in decision-making within households, communities and elsewhere.


A unique feature of the change process introduced by gender sensitive PSL schemes was the holistic approach adopted to have a sustained impact which included co-ordinated interventions at multiple levels (central government, state and district levels) for smooth implementation and working across sectors to provide an integrated support package to women over multiple time frames, which led to the formulation of financial products and services that fit women’s needs.

Another special characteristic of the PSL schemes was the closely co-ordinated supervision and evaluation of each intervention by the concerned bank and the RBI that was able to detect concerns and take remedial action at an early stage. The regular monitoring meetings within banks and with RBI and the performance reports of each PSL scheme kept all involved bank officials informed about the implementation progress.

The cumulative impact of these changes crystalised into a gradual change of social norms that had been a barrier for women in accessing productive resources and contributed to gender inclusive economic growth.

Challenge to social institutions and discriminatory norms

The gender sensitive priority sector lending schemes are driven by the promotion of gender equity and social justice to address the gender-based segregation and discrimination prevalent in the formal financial sector. This is necessary as the promotion of financial inclusion of women is an essential prerequisite of equitable growth. Women’s access to finance is important for three reasons:

• Its’ intrinsic worth as a valued goal in contributing to women’s economic well-being and empowerment;

• Its’ instrumentality in achieving other valued goals;

• It’s good for business – women are an untapped, profitable and growing market but their ability to grow is hampered by limited access to finance and other resources.

To attain these objectives the PSL schemes challenged discriminatory norms that perpetuate women’s financial exclusion, on both supply and

Figure 1. Stages of theory of change in the implementation of PSL schemes targeting women

Context: Discriminatory norms of the formal financial sector that deny credit facilities to women to improve their quality of life

More gender sensitive PSL schemes introduced

Women’s rights acknowledged through

collective organisational efforts of stakeholders to

facilitate social change

Adequate resources allocated to provide

support to women within PSL facilities

Women economically empowered and participate in decision-making as equal economic partners with men

Outcome

Outputs

Build political will; sensitise policy-makers and other stakeholders; awareness

raising and advocacy campaigns

Change social norms through different channels

Develop innovative financial products integral to PSL and formalise new

partnerships with different stakeholders to reach out

to women

Interventions

Banks’ mistrust in women’s ability to repay: hesitant to lend to them

due to difficulties in recovering small loans &

high transaction costs

Prevailing social institutions and norms

discriminate against women

Inadequate support to access productive resources & other

opportunities

Barriers /Constraints


demand. On the supply side formal financial institutions limit their outreach to women even though there is nothing unserviceable about them (Narain, 2010). Other supply side factors include the high transaction costs of serving small borrowers, which most women are, as well as being often spatially dispersed in locations with poor infrastructure and physical access that reduces outreach. Lack of competition in concentrated markets reduces the incentive for financial institutions to explore new market segments, such as women, and the lack of legal frameworks to support alternative financial product development impacts product innovation beyond loans against traditional collateral. Due to restricted access to credit, women tend to lack credit histories or information on their financial operations, which deters banks from lending to them as they are considered ‘risky’. The alternative is to provide collateral, which many women don’t have. Without collateral banks may charge exorbitantly high interest rates or grant only a short term loan that might not meet their needs.

On the demand side many women lack information about bank products and services and may be ‘discouraged’ from applying for loans in the belief that financial institutions do not grant loans to low income clients. Discriminatory norms also include hurdles associated with physical access (services being delivered in fewer and less convenient ways), eligibility (not having documents and other requirements to process services) and affordability (minimum balance requirements and fees).

The PSL schemes challenged two major banking gender discriminatory problems both of which are deeply influenced by social norms and defined by the prevailing social environment. ‘Access to credit’ is supply driven and therefore dependent on the availability of appropriate and reasonably priced financial services while demand and supply determine the ‘usage of credit’.

The first discriminatory social norm that PSL targeted was women’s low access to credit or low level of financial inclusion. Only about 25 per cent of females above the age of 15 have an account in a formal financial institution compared to 42 per cent of Indian men and 60 per cent on average among the emerging national economies of BRICs – Brazil, Russia, India, China and South Africa (Demirgue-Kunt et al., 2008). PSL provided women with small, flexible short-term loans, which increased their

bargaining power in households and also had a ripple impact on their community and the society at large (Dufflo, 2012; World Bank, 2012). Secondly, access to financial services through bank accounts also assisted women to protect their assets, assert their individual identity (Sorsa, 2012) and raise their participation in the labour force. A strong link was also observed between women’s financial inclusion and their performance as entrepreneurs as credit was accessible for funding business activities. The increasing use of mobile phones in India has opened up new opportunities for mobile banking, which gives women the choice to conduct bank transactions from a convenient location. The new communications technologies that are facilitating new ways of reaching people are dramatically improving financial inclusion for women.

Three other measures the PSL schemes put in place to address discriminatory norms are as follows: (i) women’s control of loan created assets, (ii) measures enabling women to use cash flow or equipment as collateral and (iii) the use of loans as productive investment rather than for consumption purposes only. Where previously women were required to have men sign their bank documents, now women are able to sign their own loan applications and conduct other financial transactions independently after being trained in financial literacy courses. These are significant steps forward in overcoming entrenched social bias against women’s economic independence.

Discriminatory norms in the formal financial sector that the PSL has changed:

• Gender bias in lending by banks: Clear guidelines with targets for lending to women (and sanctions for not doing so) were introduced, which replaced bankers’ fears of lending to women without collateral or lacking in personal accountability.

• Excessive focus on ‘productivity profitability’ of banks tied them to a profit motive, prompting them to lend to corporate units and not to women.

• Absence of women as branch managers or in key positions to understand the needs of women borrowers.

• Mobility restrictions whereby women had to be accompanied by a male relative to travel to banks.


• Compared to men, women in India were less aware of the procedures, practices and formalities in the banking world.

• Off-the-shelf loan products were traditionally more suitable for formal male-run enterprises while women require loans for informal household enterprises.

• ‘Women only make pickles.’ Very few bankers believed that women could break new ground on the industrial front and successfully manage non-traditional enterprises.

To address these changes the government’s PSL programmes adopted the following strategies:

• Allocation of shares for women in most PSL schemes;

• Partnerships with NGOs and SHGs to tap into their extensive geographical coverage and knowledge of borrowers;

• Development of innovative financial products and services;

• Establishment of a national credit fund for women, a women’s national bank and other similar women-centric programmes to ensure credit reaches women.

Organisational contextThe seismic shift in banking services as a result of the PSL schemes was most evident in the organisational set up of formal financial organisations. The diversification of the clientele base to include women and other vulnerable groups in small agricultural enterprises, micro and small-scale non-farm enterprises and others convinced the banks that financial benefits could accrue to their business in the long term. They began to explore novel channels of financing. One of these was the provision of indirect finance (or use of intermediaries) to a range of institutions that were directly supporting women and other vulnerable groups. The banks channeled loans through SHGs and regional rural banks to finance small-scale village and cottage industries. The introduction of indirect financing resulted in the establishment of strategic partnerships between formal financial institutions and non-financial associations such as non-governmental organisations, SHGs and others, with extensive networks of different groups of clients especially in

the rural areas coupled with a sound knowledge of their activities - providing banks with a sound base for investment.

The organisational transformation of formal financial institutions while implementing the PSL programme took place at the following three levels:

1. The introduction of new forms of lending such as:

– Mandatory lending requirements that directed commercial banks to lend a certain portion of their portfolio to specific sectors and groups (like women) and that required changes in their organisational strategy to reach the target.

– Refinancing schemes that allowed public sector banks to borrow funds from the central bank at a lower rate to set up necessary mechanisms for on lending to institutions engaged in assisting marginalised sections of society.

– Interest rate subsidies: To assist strategic sectors and clients with limited access to credit, the government provided a below-market interest rate for a specific line of credit with interest rate ceilings (on deposits and/or loans) that might vary by sector or the term of loan. Banks had to develop the internal mechanism to handle this credit.

– Credit guarantees: To address the issue of collateral, which restricts certain sectors and groups from accessing institutional credit, the lending institution took on part of the risk of the loan. Specific organisational changes were required to meet this challenge.

– Establishment of development financial institutions to meet the specific needs of certain vulnerable groups. In the case of women these included the Rashtriya Mahila Kosh and the Bharatiya Mahila Bank (BMB) as detailed in Section 2.

2. Regular reviews of the implementation of PSL schemes by the Reserve Bank of India: Committees were set up to assess and recommend future interventions based on the lessons learned. This included the RBI circulars instructing financial institutions


about the changes and necessary actions required to meet the government’s target of social justice (see details in Section 3).

3. Inclusion of microfinance institutions (MFI) as a priority sector though the establishment of the SHG-bank linkage model formalised on the recommendation of a 1994 RBI Work Group set up to study the functioning of NGOs and SHGs as conduits for expanding the activities of banks. Scheduled commercial banks were directed to include lending to SHGs as priority sector advances. This covered loans for agriculture, micro and small enterprise and ‘others’ which were advanced to SHGs against their ‘qualifying assets’ (other than cash, balances with banks and financial institutions, government securities and money market instruments) for onward lending to these groups. The inclusion of MFIs in the priority sector has resulted in a significant increase in lending to MFIs by commercial banks, in the form of direct lending and as investments in securitised instruments. Priority sector lending has contributed immensely to the increase in MFIs fund availability, which has in turn enhanced their capacity to on-lend to women SHGs.

As a result of these measures, the formal institutions became catalysts in supporting different government-sponsored poverty alleviation programmes that address the special credit needs of marginalised sections of society.

Credit for women: Key principles of RBI’s 14-Point Action Plan

• Redefine policies and long term plans of the banks;

• Set up women’s cells;

• Simplify procedural formalities;

• Orientation of bank officers on gender concerns/credit requirements of women;

• Entrepreneurship development and training facilities for women;

• Increase the limit on loans requiring collateral;

• Establish specialised branches for women.


2. Strategies and Change EffectsPSL change strategies From the very beginning the priority sector lending programme was used to bring about changes in banking services with the objective of addressing severe imbalances in the economy and achieving the government’s income distribution goal of meeting the financial needs of vulnerable groups of society, such as the ‘weaker section’ and women.

However, due to emerging circumstances, PSL was constantly being reviewed and changes to its composition introduced from time to time. This was most evident in the case of integrating gender sensitive elements into some of the major PSL schemes that comprised both direct lending and specially designed poverty alleviation programmes. Gradually a range of new programmes focusing on women’s specific financial needs were brought within the fold of PSL to address its two main handicaps:

• Non-inclusion of women as a part of priority sector lending or weaker sections as per the definitions of RBI, and;

• Absence of reporting on the delivery of financial services on a sex-disaggregated basis by the banks to RBI.

The PSL schemes addressed these challenges, which are rooted in social institutions and exclusionary practices. They also changed the embedded gender biases in advancing credit to women such as the notion that small loans required by women are difficult to supervise and as a result transaction costs of credit delivery increases.

Some of the major gender-sensitive initiatives implemented under the PSL schemes (Bankers’ Institute for Rural Development, 2003) are:

• The Integrated Rural Development Programme (IRDP), subsequently re-packaged with additional features as Swarnajayanthi Gram Swarozgar Yojana (SGSY), reserves a 40 per cent share for women.

• Under IRDP, a programme for the development of women and children in rural areas (DWCRA) was set up to organise and finance groups of poor women.

• The Swarnajayanthi Shahari Rozgar Yojana (SJSRY) scheme to reduce urban poverty with a sub-target of 30 per cent was earmarked for women clients.

• The policy of state governments to promote credit, functional, and/or industrial co-operative societies with women members.

• RBI support for the promotion of women’s urban co-operative banks such as the Self-Employed Women’s Association (SEWA), with relaxed entry norms.

• The Differential Rate of Interest (DRI) scheme which provides loans at low interest rates with 4 per cent reserved for women and men from marginalised sections of society.

Other PSL supported government programmes that have benefitted women include:

• Scheme for Urban Micro Enterprises (SUME), which boosted urban employment programmes for women;

• Nehru Rozgar Yojana (NRY), which targeted urban area dwellers living below the poverty line (less than Rs7,200 a year);

• A SEEUY scheme to provide self-employment opportunities for unemployed educated youth;

• The Prime Minister’s Rozgar Yojana (PMRY), which provides sustained self-employment in micro-enterprises to about 10 unemployed educated youth in the age group 18-35 years in families with an income of less than Rs24,000 per annum, and;

• The Scheme for Liberation and Rehabilitation of Scavengers (SLRS), which seeks to rehabilitate the scavengers, many of whom are women, from their existing hereditary occupation of manually removing night soil and to provide them with alternative occupation.

The refinancing scheme of NABARD and the Small-scale Industries Development Bank of India (SIDBI) was another aspect of the PSL supported programmes that assisted women in particular.

Strategies and Change Effects \ 15

NABARD and SIDBI facilitated the commercial banks to ensure the required flow of credit to priority and needy segments of society, with a special focus on the needs of women clients. The establishment of regional rural banks (RRBs) to focus on marginalised sections of the population in rural areas increased credit flow to rural women.

The following PSL supported initiatives also deserve special mention for advancing the economic empowerment of women:

The Rashtriya Mahila Kosh (RMK)/National Credit Fund for Women provides microcredit to women through a network of NGOs. RMK is a registered society that was set up by the Department of Women and Child Development (DWCD) in 1992 with an endowment of Rs310 million to provide microcredit exclusively to women, individually or through SHGs. The fund has since increased to Rs88.00 crores. By March 2001, RMK was operating through 861 partner NGOs. RMK provides loan assistance to NGOs for on lending to women for setting up micro-enterprises. NGOs are responsible for recovering funds from borrowers and repaying RMK. In addition to previous lending schemes (such as main loan, repeat loan, working capital and housing loan, refinance and franchise schemes among others) RMK has launched innovative financing and capacity development programmes to venture into new areas of financial support to women, especially those in the rural areas.

NABARD’s initiatives include capacity building for women in non-farm enterprises to enable them to access institutional credit, set up women development cells (WDCs) in regional rural banks (RRBs) and co-operative banks, and to promote and meet operating costs of farmer clubs with women members. NABARD also provides financial assistance to exclusive promotional-cum-refinance schemes for women’s entrepreneurship, such as; Assistance to rural women in non-farm development (ARWIND), Assistance for marketing of non-farm products of rural women (MAHIMA) and Development of women through area programme (DEWTA)

NABARD’S most valuable contribution to fostering gender equality in credit delivery has been in the formation of self-help groups (SHGs) and linking them with banks across rural India. Nearly 90 per cent of the over 8 million strong members in the SHG movement are women. The SHGs lend to

their members on terms and conditions decided by the members themselves in a democratic manner. After six months banks extend collateral free flexible loans to the groups in proportion to their accumulated savings. This flexible collateral free credit product is transforming the economic status of millions of rural women. Banks are also taking an active interest in the concept based on repayment rates of nearly 100 per cent. Full refinance support to banks at concessional interest rates is available and in selected cases NABARD also provides bulk loans to NGOs and micro finance institutions (MFIs) for on lending to SHGs.

In 2009, after more than a decade in operation, the SHG–bank linkage programme comprised 1,079,091 groups. In addition NABARD provides credit to some 16 million low-income households (with nearly 90 million people) via 48 commercial banks, 196 regional rural banks and 361 co-operative banks or other intermediaries. About 50 per cent of all SHGs were linked with commercial banks, 39 per cent with RRBs and 11 per cent with co-operatives. The average loan per SHG was Rs36,182 and per family Rs2,440 (Chandrashekharan, 2013).

SIDBI’s initiatives to promote women entrepreneurs include the following schemes:

• Mahila Udhyam Nidhi: Under this refinance scheme banks assist women entrepreneurs with up to Rs1 million to set up and recondition small enterprises in the manufacturing and service sectors. SIDBI also gives soft loan assistance of 25 per cent of project cost at 1 per cent service charge (maximum Rs0.25 million) to match the contribution of the borrowers.

• SIDBI Foundation for Micro Credit (SFMC): With a capital of Rs1 billion SFMC aims to increase outreach to poor women by forging long-term partnerships with MFIs and promoting new channels of financing that are conducive to the needs and psychology of the rural poor, especially women.

• Bharatiya Mahila Bank (BMB) or ‘Bank for Women’: The tagline of BMB is ‘Empowering Women – Empowering India’. Established in November 2013, BMB is the first formal financial institution in India with a special mandate to serve the women of the country by meeting their financial needs and


ensuring that financial inclusion of women is undertaken extensively. The vision of BMB is the economic empowerment of women especially those who are overlooked by formal financial institutions. The bank has 42 branches and its initial capital consisted of Rs1,000 crores.. In addition to extending credit to women BMB focuses on financial literacy for women. It has organised training programmes on this topic for over 25,000 beneficiaries across the country.

• Financial Literacy Centres (FLCs): RBI directed banks to equip women and other marginalised sections of society with adequate financial literacy skills to enable them to undertake basic financial transactions independently. The banks set up FLCs and organise monthly financial literacy camps for raising awareness on basic banking rules relevant to the women’s financial needs.

With the establishment of regional rural banks (RRBs) and the introduction of lead bank schemes the earlier closeted approach of formal financial institutions has ended. These new initiatives are delivering financial services to neglected and vulnerable groups in society, and to women in particular.

Table I. Summary of major changes in women’s access to credit from formal institutions

1. Access Availability of formal, regulated financial services: Physical proximity Affordability

2. Usage Actual usage of financial services and products: Regularity Frequency Duration of time used

3. Quality Products are well tailored to client needs Appropriate segmentation to develop products for all income levels

Source: Alliance for Financial Inclusion (AFI), 2011)

Impacts at Different Levels \ 17

3. Impacts at Different LevelsThe impact of the PSL schemes targeting women’s financial needs was observed in the different initiatives undertaken to overcome the exclusionary practices of the formal financial sector that perpetuated gender inequality and , denied the women access to needs-based financial products and services.

Government officials at the sub-divisional, district and divisional levels supervised the financial support for a wide range of poverty alleviation programmes allocated by the Integrated Rural Development Programme (IRDP) and others. They assessed the overall progress of the state’s implementation of the PSL schemes and compiled a report for the central government to review and take necessary steps. The banks also monitored the progress of each PSL scheme, carried out joint inspections with government officials and prepared reports for submission to the authorities.

The reporting system focused on the eligibility criteria of the beneficiaries such as family size, income level, asset holdings, education and loan utilization. The supervision teams evaluated whether women were able to overcome the structural barriers while applying for loans from banks. Administering authorities also considered factors such as familiarity with the background of women clientele and the specific purpose of the loans they applied for.

As a result the following changes were introduced:

• Provision of alternative collateral for the loan;

• Designing appropriate lending package based on an understanding women’s need for small loan amounts for consumption purposes;

• Close supervision of the spending of the loan fund;

• Evaluation of the impact of the loan on the quality of life of women borrowers;

• Steps to meet the challenges of the implementation process and to institutionalise good practices for replication.

The success of the Bagnan Mahila Bikash Co-operative and Credit Society (BMBCS) in the Howrah district of West Bangla is an example of the gradual evolution of a women-led financial organisation in addressing the challenges of social norms. BMBCS began as a beneficiary of the Development of Women and Children in Rural Areas (DWCRA) programme in Bagnan district of West Bengal. It is an amalgam of three activities: economic (banking-related), manufacturing, production and sales, and social development, including managing of self-help groups (SHGs) and their social development activities in such fields as education, public health, family welfare and environmental improvement. BMBCS co-ordinates the three activities effectively and is diversifying its production base rapidly as well as expanding

The case of IRDP beneficiary T Somulamma of Rasipuram village, Vizianagaram District, Andhra Pradesh

Somulamma, aged 45 years, belongs to the Koppula Velama community of Backward Class and she is illiterate. The annual income of her family is Rs15,000. IRDP selected her as a beneficiary for an oil engine, which was provided as an asset. With the help of the oil engine Somulamma has been able to cultivate the family’s two acres of land. Previously she had to purchase water, which was expensive due to a shortage. She began cultivating paddy and harvested 10 quintals of paddy in the first year, and 11 quintals during the kharif season during the second year. With increased crop production she paid back Rs1,000 of her loan contribution for the asset and the family was upgraded above the poverty line. The involvement of IRDP helped Somulamma realise a net additional income of Rs6,000 per annum. She consolidated her income position with the help of this assistance (Dev and Padmanabha, 2002).


its welfare activities for children’s education, skill-based training for women and others. Figure 3 indicates its savings, loan recovery and disbursements over the years.

In the case of direct lending there was an increase in the number of branches opened by public sector banks to serve clients living in remote areas without any financial services with the total number of branches (including the urban, semi-urban and rural areas) increasing from less than 50,000 in 2001-2002 to nearly 65,000 in 2011-2012. About 93% of the branches in the rural areas belong to the public sector banks and Figure 4 illustrates the regional spread of public sector banks as of March 2012.

The two priority sectors that experienced a substantial increase in lending by banks, agriculture and micro, small and medium enterprises (MSME) are indicated in figures 5 and 6 respectively.

From a gender perspective, the shift of focus by the formal financial institutions to include women clients led to a gradual increase in the number of accounts held by women and credit delivery to women. The number of accounts held by women rose from 10.6 million in 2009 to 17.4 million in 2013 (Figure 7).

Due to the increase in the ceiling for mandatory lending to women, the share of credit to women

as a percentage of the Adjusted Net Bank Credit increased from 2.4 per cent in 2001 to 7.57 per cent in 2013 (Figure 8).

Perhaps, the most notable impact on women’s financial inclusion was observed in the microfinance sector with the institutionalisation of the linkage between banks and non-financial institutions. The NABARD supported SHG-bank linkage scheme had the biggest increase in the accessibility of credit for women, with over 90

Figure 3. BMBCS savings, loan recovery and disbursement (2001-02 to 2010-11)

Source: Bhattacharya et al., 2012

Figure 4. Regional spread of public sector banks (as of March 2012)

Source: RBI as quoted in Nathan Associates, 2013

Impacts at Different Levels \ 19

per cent of the core beneficiaries being women’s groups according to NABARD’s 2009 performance analysis (NABARD, 2013).

An evaluation of the impact of women-owned SHGs in Warangal district of Andhra Pradesh (Kumar, 2011) identified the benefits derived by women after they joined a self-help group (Table III) For example savings increased, dependency on money lenders was reduced and repayment of SHG loans was above 95 per cent. Members developed self-confidence and leadership qualities and increased their involvement in a wide variety of income generating activities.

The Rashtriya Mahila Kosh (RMK) experienced a steep rise in its lending activities to SHGs, co-operative societies, NGOs and other institutions. RMK started with an initial Rs31.00 crore that was

boosted up to Rs41.00 crore in 2006-07 and grew to more than Rs88.00 crore in 20074 due to prudent investment, credit and recovery management.

The Ministry of Micro, Small and Medium Enterprises in collaboration with SIDBI set up the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) to provide collateral-free loans based on the viability of the enterprise and the security of the assets financed. The Trust provides a guarantee dependent upon loan size, which is generally 75 per cent of the total loan. This facility has been particularly helpful to women entrepreneurs as it provided both term loan (from 6 – 18 months) and working capital.

4 Source: Annual Report of RMK 2007-2008. http://wcd.nic.in/ar0708/English/Chapter-11 (accessed 28 September 2015)

Figure 5. Agriculture lending (2001–02 to 2012–13)

Source: NABARD, 2013

Figure 6. Micro, small and medium enterprises (MSME) lending)

Source: NABARD, 2013


Up to March 2013 a total of 718 financial literacy centres had been set up in the different public sector banks and awareness campaigns were being organised to improve women’s and other vulnerable groups understanding of financial transactions. A total of 2.2 million women and men were educated through awareness campaigns, short courses, seminars and lectures between April 2012 and March 2013 (RBI reports).

The shift by formal financial institutions to lend to marginalised sections of society, especially women who were previously considered as credit risks, has had an overarching impact. Women have been able to benefit from credit that is available, accessible and most importantly affordable. This was due to a number of initiatives by policy-makers in formal institutions and recommendations from RBI review committees set up to assess the quality of implementation of PSL schemes from a gender perspective. As a result, formal financial institutions became a catalyst in transforming the government’s drive for social justice and equity while also improving their financial operations. Women also benefited as they came within the

ambit of formal financial institutions without sacrificing the quantum of loan applied for or the purpose of the loan. Finally, social institutions were influenced by the emergence of the new image of women who are capable of making their own decisions and not be subjected to restrictions on the exercise of their economic choices.

Figure 7. Number of accounts held by women (2009-2013)

Figure 8. Credit to women as a percentage of ANBC (2004–2013)

Impact of SHG-bank linkage schemes on women members in underdeveloped communities

NABARD conducted an impact assessment of 27 women-owned self-help groups in the Medahali, Laxmipura and Madanayakanahali regions of Karnataka, which are dominated by underdeveloped tribal communities. The members of these SHGs were in the age group of 19-65 years and length of membership varied. The majority of them were semi-literate, 74 per cent of them were living below the poverty line and 43 per cent were landless. The impact assessment identified the following improvements among members as a result of participation in the SHG-bank linkage schemes.

• Increased knowledge and awareness of the members;

• Increased savings and income (Table II).

• Increased decision-making power in their families.

Tracking Change, Future Plans \ 21

Table II. Improvements in income and savings of SHG members in Karnataka region

Attributes

Age of SHGs1-2 years 2-3 years 3 & more years

Average household monthly non-basic income Rs. 6400 Rs. 9300 Rs. 11400

Average monthly savings - in kind Rs. 970 Rs.1180 Rs. 1320

Average monthly savings - financial Rs.540 Rs. 780 Rs. 1040

Total average monthy savings Rs. 1510 Rs. 1960 Rs. 2360

Percentage of household beyond the poverty line 28% 32% 43%

Source: Chandrashekhar, 2013

Table III. Benefits derived by SHG members after joining an SHG (multiple responses)

SI. No. Item Percentage

1 Greater autonomy in household decision making 30%

2 Reduces domestic violence against them (women) 30%

3 Economic Independence 50%

4 Self-confidence 82%

5 Social cohesion & habit of saving 60%

6 Asset ownership 40%

7 Freedom from debt 10%

8 Additional employment 20%

9 Broadens their public domain 10%

Source: Kumar, 2013

Success story of SHG in Andhra Pradesh supported by RMKPadmavati Devi of Garla Mandal in Khammam District, Andhra Pradesh had difficulties in meeting the expenses of her household. She had a business idea to set up a grinding-mill in her village but had no money. One of her friends introduced her to a self-help group in her village called Gram Samakhya that provides loans to the members of SHGs. Padmavati became a member of the Gram Samakhya and after sometime, approached her group leader for a loan. Her application was put before the Mahila Mandal Samakhya and it was approved. She got a loan of Rs25,000 from the Rashtriya Mahila Kosh (RMK)/National Credit Fund for Women, which was channelled through this Mandal Samakhya. She decided to go for two grinding mills, chillies and rice, at a total cost of Rs30,000. To meet the full cost of the mills she borrowed Rs5,000 from one of the members of SHG. Padmavati put the two grinding mills into production in the village and as a result is now earning Rs2,000 per month. Out of this Rs1,500 is being used for repayment of loans and the remaining amount of Rs500 is being used for her monthly expenditure. She says that her family and other group members of Gram Samakhya are happy to have easy micro-credit assistance from RMK.

Source: National Credit Fund for Women (Rashtriya Mahila Kosh), http://wcd.nic.in/ar0708/English/Chapter-11.pdf


4. Tracking Change, Future PlansThe first set of PSL schemes of the late 1960s were limited in addressing the gender-specific needs of women due to the gender gaps in the loan packages that were offered. This led to the formulation of the second set of PSL schemes which made a special effort to understand the financial requirements of women. It introduced changes within the financial institution to develop a wide range of financial support packages that catered to the special financial needs of female borrowers. This was an unprecedented development in the history of Indian banking and the government’s efforts to bring vulnerable sections within the fold of formal financial institutions through implementing initiatives for addressing their special requirement for small, timely and flexible loans.

Regular updates on the progress of women’s financial inclusion submitted by banks to RBI and meetings held by banks to monitor this progress have contributed to refining the existing gaps and building on sound practices. Moreover, the regular flow of information on the status of women’s financial inclusion from banks to RBI and the latter’s robust monitoring and evaluation mechanism have made this issue a top priority for further improvement.

From time to time, RBI issues circulars to strengthen the lending system to women clientele and working groups have been formed to ensure smooth implementation. For instance the decision of the Internal Working Group (IWG) of the RBI to revisit the existing priority sector lending guidelines resulted in the inclusion of women as a separate category to access loans of less than Rs50,000, as a representative of the weaker section (March 2015). In addition PSL lending targets for women were increased in 2015 from Rs50,000 to Rs100,000 and there are other ongoing reviews to revise bank lending conditions for women under the PSL schemes.5

5 The 2012 Nair Review Committee recommended for the formal inclusion of women within weaker section.

The RMK has been experimenting with a range of innovative financial products for credit delivery to better equip its intermediaries to serve their female clients effectively. Some of the new initiatives include:

• The gold credit pass book scheme which provides finance for medium and large NGOs to revolve the fund approved by RMK for three years;

• Working capital term loans scheme;

• Partnerships with an expanding network of NGOs, supporting intermediary organisations and others to provide financial support to grassroots level organisations that are the frontline support for women.

The SHG-bank linkage programme of NABARD has contributed towards increasing women’s access to credit and improving women’s financial literacy, increasing their income and savings and also improving their capacity to participate in decision-making within the family and community. The research for new client-friendly financial products continues.

The efforts of the formal financial institutions as well as NGOs and other grassroots organisations to make credit available to women on terms and conditions that are favourable to them has increased women’s financial inclusion and introduced organisational changes within the lending institutions to consider them as potential clients.

Conclusion \ 23

5. ConclusionAt the time of the launch of the second set of gender sensitive PSL schemes, women were subjected to the discriminatory norms of the formal financial sector and systemic financial exclusion. With the primary focus of the PSL schemes on improving women’s access to finance as a prerequisite for their empowerment, several measures were introduced to break the monopoly of large businesses (mostly owned by men). In addition funds were directed to strategic yet vulnerable groups that are an integral part of inclusive growth but have not been able to access credit due to the prevalence of specific social norms.

The schemes supported by PSL shattered the perception that women are not creditworthy and challenged the view that women entrepreneurs are only ‘pickle makers’. The idea that women would remain trapped in the cycle of inadequate access to credit, low investment and low returns was replaced by women’s easy access to credit through NGOs/SHGs that were financed by the formal financial institutions. Representatives of these groups live among the borrowing communities or close to them and therefore have a sound understanding of the compelling conditions under which women apply for loan.

This reversal of women’s status from a financial perspective had an impact on the prevailing social norms about women’s capacity to undertake not only income-generating activities but also become successful entrepreneurs in their own right. Once this change took place, women’s households were the first to experience a qualitative impact in terms of the standard of living. Thereafter, women’s status changed in the community and in the immediate environment, which encouraged them to participate actively in decision-making at all levels in matters that affected their lives.

The gender focus of the selected PSL schemes were innovative at the time of introduction, however, their real significance lies in the continuous review and development of further innovative financial products and services since the inception of the first batch of PSL schemes. Women are now being considered as a potential source of economic growth who require needs

based financial support for their full development and for contributing towards gender inclusive growth. The wide range of novel schemes introduced within the public sector lending programme have made history in the formal financial sector of India – from allocating a specific women’s share in selected programmes, to establishing strategic alliances with non-financial partners, to establishing a financial development institution and a bank for meeting the credit requirements of women borrowers. Meanwhile, efforts to introduce further innovative financial products and services to empower women continue to gain momentum.

With the establishment of the Bharatiya Mahila Bank (Bank for women) in 2013, the outreach to women as viable economic agents has been formalised. It is not only through subsidiaries or partnerships that formal financial institutions are directed by the government to integrate a gender-sensitive approach towards women clientele but they have realised this drive as an investment that contributes to their financial credibility and success. The momentum of PSL to include women has now been institutionalised within the formal financial sector and the force of competition among the different financial institutions to include new clients and launch location-specific financial products are positive developments that will empower women as real agents of economic change.


AcronymsANBC Adjusted Net Bank Credit

ARWIND Assistance to Rural Women in non-Farm Development

AFI Alliance for Financial Inclusion

BMB Bharatiya Mahila Bank

BMK Bharatiya Mahila Bank

BMBCS Bagnan Mahila Bikash Cooperative and Credit Society

BRICS Brazil, Russia, India, China, South Africa

CGTMSE Credit Guarantee Trust for Micro and Small Enterprises

DEWTA Development of Women through Area Programme

DWCD Department of Women and Child Development

DWCRA Development of Women and Children in Rural areas

DRI Differential Rates of Interest

ETR End Term Review

FLC Financial Literacy Centres

ILO International Labour Organization

IRDP Integrated Rural Development Programme

IWG Internal Working Group

LBS Lead Bank Schemes

MAHIMA Assistance for Marketing of non-Farm Products of Rural Women

MFI Microfinance institution

MSME Micro, small and medium enterprises

NABARD National Agriculture Bank for Rural Development

NGOs Non-Governmental Organisations

NRY Nehru Rozgar Yojana

Acronyms \ 25

OECD Organisation for Economic Co-operation and Development

PMRY Prime Minister Rozgar Yojna

PoA Plan of Action

PSL Priority Sector Lending

RBI Reserve Bank of India

RIDF Rural Infrastructure Development Fund

RMK Rahtriya Mahila Kosh

RRB Regional Rural Banks

SEEUY Self-Employment Scheme for Educated Unemployed Youth

SEWA Self-Employed Women’s Association of India

SGSY Swarnajayanthi Gram Swarozgar Yojana

SHGs Self-Help Groups

SIDBI Small-scale Industries Development Bank of India

SJSRY Swarnajayanthi Shahari Rozgar Yojana

SLRS Scheme for Liberation and Rehabilitation of Scavengers

SMFC SIDBI Foundation for Micro Credit

SUME Scheme for Urban Micro Enterprises

WDCs Women Development Cells


GlossaryDirect or public sector lending: Channelling credit at preferential rates to strategic sectors and vulnerable groups in developed as well as developing countries to address imbalances in the national economy.

Institutions: The rules for achieving social or economic ends, i.e. determining who gets what, what counts, who does what and who decides. These rules include values that maintain the gendered division of labour, prohibitions on women owning land, restrictions on women’s mobility and perhaps most fundamentally the devaluing of reproductive work.

Empowerment of women: Concerns women and girls gaining power and control over their own lives and involves awareness-raising, building self-confidence, expanding choices, increasing access to and control over resources and actions to transform the structures and institutions that reinforce and perpetuate gender discrimination and inequality. The core of empowerment lies in the ability of a person to control his/her own destiny.

Gender roles: Social and behavioural norms that, within a specific culture, are widely considered to be socially appropriate for individuals of a specific sex. These often determine the traditional responsibilities and tasks assigned to men, women, boys and girls. Roles are often conditioned by household structure, access to resources, specific impacts of the global economy, occurrence of conflict or disaster and other locally relevant factors.

Organisations: The social structures created to accomplish particular ends but which embody the institutions prevalent in a society. They are structured by formal rules and procedures. Because formal organisations are socially embedded they reflect and reproduce existing power imbalances. While formal rules may specify non-discrimination in serving a population, organisations often operate according to values and rules that may be hidden, i.e. ‘rules in use’ that marginalise the interests of certain groups such as the poor or women.

Theory of change: Explains what we think we are trying to change, why we think our strategies will help us to make those changes and what kind of evidence we need in order to assess whether or not our strategies are working. A complete theory of change articulates the assumptions about the process through which change will occur, and specifies the ways in which all of the required early and intermediate outcomes related to achieving the desired long-term change will be brought about and documented as they occur.

References \ 27

ReferencesBhattacharya M et al. 2012. ‘The Bagnan Story of Women’s Self-Development.’ Administrative Training Institute of West Bengal supported by the Ministry of Personnel, Public Grievances and Pensions, Government of India.

Bankers’ Institute for Rural Development (2003). ‘Property Rights and Collateral: How Gender Makes a Difference.’ ILO Social Finance Programme, Working Paper 35, Lucknow, India.

Chandrashekharan T C. 2013. ‘Impact of Microfinance Enterprises Through SHG/Bank linkage in India Priority Sector Lending Programmes: A Micro Study.’ A Journal of Economics and Management, Vol 2, Issue 9.

Commonwealth Secretariat. 2013. ‘Savings and Credit Organizations Owned or Managed by Women: What makes them successful and what strategies do they use? Lessons from India.’ Marlborough House, London.

Dev M and Rao Padmanabha. 2002. ‘Poverty Alleviation Programmes in Andhra Pradesh – An Assessment.’ Sponsored by Planning Commission, Centre for Economic and Social Studies, Hyderabad, India.

Demirguc-Kunt et al. 2008. ‘Finance for all: Policies and pitfalls in expanding access.’ Policy Research Report. World Bank: Washington D.C. USA.

Dufflo E. 2012. ‘Women, Empowerment and Economic Development.’ Journal of Economic Literature, 50(4).

NABARD resources online at: https://www.nabard.org/english/GenesisRIDF.aspx (accessed 18 September, 2015)

Kumar, S V. 2011. ‘Empowerment of women through SHGs – A case Study of Warangal District.’ International Journal of Rural Development and Management Studies. Vol. 5. Number 1.

NABARD. 2013. ‘Progress of SHG Bank Linkage in India.’ NABARD, Mumbai, India.

Narain, S. 2009. ‘Gender and Access to Finance’. Available at: siteresources.worldbank.org.

Nathan Associates Inc. 2013. ‘Re-Prioritizing Priority Sector Lending in India: Impact of Priority Sector Lending on India’s Commercial Banks.’ London, UK.

RBI reports online at: https://www.rbi.org.in/Scripts/BS_ViewPublicationReport.aspx

Sorsa P. 2012. ‘Raising the Economic Participation of Women in India: A New Growth Engine?’ Working Paper. OECD: Paris, France.

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