SGSY/NRLM

SGSY

Issues • Frequent transfers of bank officials and rural development

officials.

• Insufficient number of bank branches and understaffing

• Selection and allotment of activity by block officials/ banks/ DRDA

• Ignorance and lack of training of PRIs with respect to RD schemes

• Absence of demand driven training by SIRD.

• Absence of well conceived project reports regarding key activities adopted under SGSY.

Issues • Lack of professional expertise at DRDA/ block level

• High attrition rate of SHGs and absence of follow up mechanism.

• Absence of committed NGOs and pool of trainers to

sensitise RD officials and beneficiaries about outcome of SGSY.

• Absence of repeated doses of loans to SHGs

• (In some places) bankers charge extra documentation and service charges.

Issues

• Lack of interest on the part of SHGs to use marketing infrastructure meant for selling of finished products.

• No proper linkages with stakeholders to provide platform for marketing of finished goods.

• Lack of uniformity in interest rate across banks.

• Lack of constant monitoring and evaluation mechanism.

• Lack of training and behavioural reorientation exercise before selection of SHGs and disbursement of subsidy.

Issues• Lack of involvement of bankers in grading

exercise.

• Problem of duplication of SHGs due to ineffective monitoring.

• SGSY presently restricts only to women groups

• Leakage of subsidy amount

• Absence of social audit mechanism for SGSY

Way forward• SHGs be promoted to select own economic activity and be insisted for

self monitoring

• Banks should open more branches in difficult areas and may go for business correspondent model to address the issue of untimely release of subsidy and loan amount.

• Government (Central and State) should press for stability of tenure of RD officials and take up issue with banks for stability of tenure of bankers as well.

• Best practices should be documented well and must be reflected across the country.

• Reform champions should be identified and promoted as resource persons for other areas

Way forward• Banks should be made equal partners in the noble objective of rural

development

• Professionals should be inducted at state/district/block level

• People’s representatives must be trained about the mechanism of rural development

• Social audit needs to be conducted to assess outcome

• Peoples with Disabilities (PWDs) should be given priority as per guidelines of SGSY.

DRDA Administration

Issues

1. Inadequate Staff at district level. 2. Lack of Staff at block & village level.3. Lack of Professionalism in the existing staff. 4. Capacity Building of DRDA staff .5. Line departments are reluctant to send

officials on deputation to DRDA, For Eg: APO industry, agriculture & animal husbandry etc.

Issues Cont..

6. Need to increase financial power of PD DRDA. 7. Need to give some kind of funds for construction & maintenance of DRDA building. 8. DRDA needs to support some IT professionals. 9. Adm funds required to be increased to the requirement of DRDA’s.10. Recruitment rule & service conditions to DRDA staff.

NRLM roll out

Issues in NRLM Roll-out…

• Targetting—restricted to BPL?• Identification of target areas if multiple

funding sources• Intensive and Non-Intensive Districts—More

IEC required• Using alternate financial intermediaries like

village councils in Nagaland where credit/ bank linkage is an issue.