Lok Sabha Question No. 2307 (UNSTARRED), answered on 2016-03-11
Subject: Rashtriya Mahila Kosh
Ministry: WOMEN AND CHILD DEVELOPMENT
Asked by: S.P. MUDDAHANUMEGOWDA, C.S. PUTTARAJU

## GOVERNMENT OF INDIA MINISTRY OF WOMEN AND CHILD DEVELOPMENT

LOK SABHA UN-STARRED QUESTION NO 2307

TO BE ANSWERED ON 11/03/2016

## RASHTRIYA MAHILA KOSH

2307 SHRI.S.P.MUDDAHANUME GOWDA; Shri.C.S.Putta Raju

Will the Minister of WOMEN AND CHILD DEVELOPMENT be pleased to state:

- a) whether  the  Union  Government  is  considering  to  revamp  Rashtriya Mahila Kosh and scrap Women Self Help Groups;
- b) if so, the details thereof and the reasons therefor ;
- c) the extent to which this new scheme is beneficial; and
- d) the time by which final decision in this regard is likely to be taken?

## ANSWER

## MINISTER OF WOMEN AND CHILD DEVELOPMENT (SHRIMATI MANEKA SANJAY GANDHI)

(a)  &  (b)      Rashtriya  Mahila  Kosh  (RMK),  an  autonomous  body  under  the Ministry  of  Women  and  Child  Development,  provides  collateral  free/third party  guarantee  micro-credit  to  poor  women  through  NGOs/IMOs  for livelihood income generating activities. The loans are given at concessional rate of interest.

The loans have been sanctioned/released to the women beneficiaries through following schemes of RMK:

- i) Loan promotion scheme
2. ii) Main Loan Scheme
3. iii) Refinance Scheme
4. iv) Franchisee Scheme
- v) Gold Credit Card Scheme
6. vi) Housing Loan Scheme
7. vii) Working Capital Term Loan (WCTL)

In  furtherance  of  the  above  said  objective  following  measures  have also been taken recently:

- i)  During  the  past  2  years  period,  the  Rate  of  Interest  (RoI)  of  RMK loans has been revised downward twice. Firstly, w.e.f 01.04.2013, maximum RoI chargeable by RMK to NGO was reduced from 8 % to 6 %. In the same analogy, the RoI chargeable by NGOs to the end beneficiaries (SHG/Women entrepreneurs) has been reduced from 18% to 14 %. The RoI chargeable by
2. NGOs to the end beneficiaries has been further reduced from 14 % to 10 %. ii) 'Mahila-E-Haat', an online marketing platform has been launched on 7 th March,  2016,  to  enhance  the  marketing  prospects  of  the  products manufactured  by  the  beneficiaries.  This  is  expected  to  empower  and strengthen  financial  inclusion  of  women  entrepreneurs  in  the  economy  by providing continued sustenance and support to their creativity. (c)  Indian  Society  for  Agribusiness  Professionals,  (ISAP)  New  Delhi,  an independent organization evaluated the socio-economic impact of RMK loan on  improvement  in  the  living  condition  of  poor  women  beneficiaries.  This study has been performed in 9 states (A.P, Assam, Delhi, M.P, Maharashtra, Odisha, Rajasthan, Tamil Nadu and West Bengal). The scope of this study included - In-depth Interaction with Intermediary Organizations (IMOs) and to assess socio-economic impact on women SHGs. The findings of the said impact study are given at Annexure 1. Since  April  2012,  29,545  women  have  benefited  under  various  loan schemes of RMK. (d) Does not arise.

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## Annexure 1

## The details and outcome of the impact study conducted by Indian Society for Agree-Business Professionals (ISAP):

## General Statistics:

-  Members of the groups were mostly (57 per cent) women from BPL families.
-  Majority (72 per cent) of the beneficiaries fall in the age group of 26 to 35 Yr. & 36 to 45 Yr which revealed that RMK loan has covered vigorously young workforce.
-  RMK  micro  financing  in  the  rural  areas  under  study  had  a positive  impact  on  backward  classes  of  the  society  as  46  per cent of the OBC, 22 per cent of scheduled caste & 11 per cent of  Scheduled  tribe  population  had  been  covered  under  RMK loan.
-  As far as the educational background of the beneficiaries were concerned, 35 per cent  of the beneficiaries were found to be illiterate  and  26  per  cent  were  reported  to  have    primary education  which further revealed that RMK had given loan to less  educated  population  who  otherwise  would  not  have  got government or private job.
-  The  percentage  of  literacy  of  the  children  of  the  beneficiaries has  increased  which  was  one  of  the  clear  indicators  of  the positive impact of RMK loan on the livelihood of the women.
-  Almost  all  beneficiaries  (SHG  members)  were  involved  in  the thrift activities of the group to further lend the collected money or saving to other members at the time of urgent need of the money. However, this activity was less popular in Rajasthan.

## Employment impact:

-  The  survey  indicated  active  involvement  of  beneficiaries  in different  kinds  of  self-employment  generating  microenterprise activities  such  as  Dairying,  Animal  Husbandry,  petty  shop, flower  business,  teashop,  tailoring,  beauty  parlour,  weaving, knitting, basket making etc.
-  56  per  cent  of  the  beneficiaries  were  employed  in  dairy activities while 14 per of beneficiaries were involved in agriculture & allied activities. 20 per cent of beneficiaries were involved  in  various  small  trade  activities  like  flower  business, bangle shop, tailoring, shop keeping etc. followed by 8 per cent of beneficiaries being involved in handloom/handicraft activities.  Some  of  the  beneficiaries  had  taken  loan  for  house construction,  consumption  purpose  like  education,  marriage  &
- other  religious  events  and  also  for  group  activities  like  thatch making, agarbatti making etc.
-  The  average  net  income  per  member  before  taking  RMK  loan worked out to Rs.1847/- while it has increased to Rs.2978/- in Post-RMK  period.  There  was  a  shift  in  the  distribution  of members from the lower income slab to a higher income slab after taking RMK loan.

## Social impact:

-  The average savings per member per annum before joining the SHG  was  Rs.1961/-,  which  has  increased  to  Rs.2993/-  after becoming the members of the SHGs.
-  Only  11.78  per  cent  of  the  beneficiaries  were  able  to  save between Rs 1000 to 3000 before taking RMK loan.  After taking RMK loan, 72.78 per cent of the beneficiaries could able to save between Rs.1000/- to Rs.3000/-.
-  Women  members  association with the SHGs significantly improved their asset creation.
-  95  per  cent  of  the  beneficiaries  agreed  that  their  personal capacities have improved as they have earned self-respect and they have active participation in imparting suggestion in household matters after availing RMK loan. They were able to take  decisions  in  business  matters,  children's  education  & family matters.
-  84  per  cent  of  the  beneficiaries  admitted  that  there  was  no domestic violence in the households.
-  An analysis of the data indicates that alcoholism/drug addiction (mentioned  by  40.2  per  cent  of  the  beneficiaries),  poverty (mentioned by 31.9 per cent), and generation gap with in-laws (18.5  per  cent)  were  some  of  the  important  reasons  for  the occurrence of domestic violence in the families.

## Consumption impact:

-  There was a noticeable change in the consumption pattern and better  household  nutrition  through  SHG  activities.  Food  items were purchased once in a week or once in a month collectively rather  than  on  daily  consumption  basis.  The  financial  mobility due to participation in the SHG has led to the improvement in the quality of life.
-  Majority (95 per cent) of the beneficiaries had improved their usage of medical facility after seeking RMK loan.

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