Submitted to by - BASIX Ltd. Report on Financial... · 2018. 3. 28. · ICICI Bank Ltd.) and Grameen Paramarsh Kendras (an initiative of Bank of Baroda). Thus, in the recent years

Draft Report - Assessment Study of design and delivery of Financial Literacy among poor across 7

UN Focus states

Page 1 of 108

Draft Report

On

Conducting an Assessment Study of design and

delivery of Financial Literacy among poor

across 7 UN Focus states

Submitted to

by

BASICS Ltd., II Floor, “Ascent Tower”, 8-2-596/C/2 to C/5,

Opp. Karvy Consultants, Road No. 10, Banjara Hills, Hyderabad 500 034,

Andhra Pradesh, India. www.basixindia.com

July, 2010

BASIX

Equity for Equity

http://www.basixindia.com/


UN Focus states

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Table of Contents

1. Introduction .................................................................................................................................... 4

1.1 Context of the Project ................................................................................................................ 4

1.1.1 The Indian Scenario ........................................................................................................... 4

1.1.2 Financial Literacy and Its scope.................................................................................... 5

1.1.3 Financial literacy initiatives by RBI ............................................................................. 6

1.2 Objective of The Study ......................................................................................................... 7

2 Methodology .................................................................................................................................... 8

2.1 Design of Survey .................................................................................................................... 8

2.2 Pilot Testing ............................................................................................................................. 9

2.3 Design of Questionnaire ................................................................................................... 10

2.4 Rationale for the Total Sample ...................................................................................... 11

2.5 Description of The Respondents Chosen for The Survey ................................... 12

2.6 Criteria of the Proposed Area for Survey .................................................................. 12

2.7 Procedure Adopted ............................................................................................................ 16

2.8 Data collation ....................................................................................................................... 17

3. Secondary Data............................................................................................................................ 18

4. Data Collation and Analysis .................................................................................................... 49

5. Conclusion and Recommendations ..................................................................................... 78

Data Collection ................................................................................................................................. 78

Findings .............................................................................................................................................. 78

Strategy to be followed in Financial Literacy Programs .................................................. 81

Recommendations .......................................................................................................................... 83

Annexure: Financial Literacy Survey Questionnaire ............................................................. 85

List of Tables Table 1: Income Profile of Borrowers By Loan Source ............................................................ 5 Table 2: Final Sampling for each of the States .......................................................................... 11 Table 3: State Wise Area Surveyed ............................................................................................... 12 Table 4: Final Sampling done according to various Financial Literacy Packages – Formal and Informal ........................................................................................................................... 14 Table 5: Rajasthan – Secondary Data ........................................................................................... 18 Table 6: Uttar Pradesh – Secondary Data ................................................................................... 21 Table 7: Spread for ISMW FL programme .................................................................................. 25 Table 8: NABARD-UNDP Collaboration Project on Financial Inclusion (through Financial Literacy) ............................................................................................................................... 26 Table 9: Madhya Pradesh – Secondary Data ............................................................................. 29 Table 10: Chhattisgarh – Secondary Data Analysis ................................................................ 34 Table 11: Orissa – Secondary Data ................................................................................................ 38 Table 12: Bihar – Secondary Data ................................................................................................. 43 Table 13: Jharkhand – Secondary Data ....................................................................................... 46 Table 14: Total Sample Study .......................................................................................................... 49


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Table 15: Profile of Sample .............................................................................................................. 50 Table 16: Profile of Sample .............................................................................................................. 51 Table 17: CONTENT COVERED BY FLP ON BUDGETING ...................................................... 52 Table 18: MANAGEMENT OF HH BUDGETING AFTER FLP ................................................. 52 Table 19: AWARENESS ON VARIOUS FINANCIAL INSTITUTIONS FOR SAVINGS (OVERALL) ............................................................................................................................................. 54 Table 20: Contents on Savings Institutions ............................................................................... 55 Table 21: USAGE ENHANCEMENT AFTER FLP ........................................................................ 56 Table 22: Awareness of Different Types of Saving Products (%) ..................................... 58 Table 23: CONTENT COVERED ON VARIOUS SAVING A/c AND ITS EFFECTIVENESS ..................................................................................................................................................................... 59 Table 24: USAGE OF VARIOUS SAVINGS PRODUCTS ............................................................. 60 Table 25: KNOWLEDGE IMPARTED IN FLP ON OPENING AND OPERATING AN A/C ..................................................................................................................................................................... 60 Table 26: AWARENESS OF SAVING A/c PROCEDURES ........................................................ 61 Table 27: AWARENESS OF VARIOUS FINANCIAL INSTITUTIONS FOR CREDIT- GENERAL AWARENESS ..................................................................................................................... 62 Table 28: CONTENT COVERED ON CREDIT INSTITUTIONS AND AWARENESS OF RESPONDENTS ..................................................................................................................................... 63 Table 29: KNOWLEDGE OF LOAN PROCUREMENT ............................................................... 64 Table 30: Awareness of different loan features ....................................................................... 66 Table 31: CONTENT COVERED ON DIFFERENT FEATURES OF A LOAN AND AWARENESS OF RESPONDENTS POST FLP .............................................................................. 67 Table 32: Loan taken after FLP ....................................................................................................... 68 Table 33: Awareness on different loan products .................................................................... 69 Table 34: Content covered on various loan products in FLP .............................................. 69 Table 35: Awareness of different insurance products .......................................................... 71 Table 36: Content covered on various insurance and its effectiveness .......................... 71 Table 37: Content covered in FLP on insurance feature....................................................... 72 Table 38: WILLINGNESS FOR ANOTHER PROGRAM ............................................................. 73 Table 39: Tools Used By FLP ........................................................................................................... 74 Table 40: DURATION OF VARIOUS FLP PROGRAMS.............................................................. 74 Table 41: OPINION ON THE DURATION OF THE PROGRAM .............................................. 74 Table 42: SATISFACTION FROM THE FLP ATTENDED ......................................................... 75 Table 43: HEAD OF THE FAMILY ................................................................................................... 76 Table 44: FINANCIAL DECISION MAKER IN THE HOUSE .................................................... 76 Table 45: PERCENTAGE OF FEMALE RESPONDENTS WHO FELT EMPOWERED AFTER THE FLP .................................................................................................................................... 77 Table 46: FLP WISE EMPOWERMENT OF FEMALE RESPONDENTS ............................... 77


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1. Introduction

1.1 Context of the Project

Financial Inclusion with mobilization of savings and extension of credit and insurance to

small borrowers, particularly the poor, is seen as a way forward to alleviate the poor out

of poverty. In this regard, considering the low levels of literacy and the fact that majority

of the population still resides in the rural interiors of India, achieving considerable

financial inclusion appears to be a quite daunting task. Even if a gamut of services is

provided to the masses, still, without sufficient knowledge of using these services to their

own advantage, the household remains intact in the vicious trap of poverty. The very

purpose of financial inclusion to augment the income of poor household stands defeated.

Hence, there is a vital need to address the challenge of financial inclusion through a new

paradigm which goes beyond mere access to the affordable delivery of various financial

products and services. This is where financial literacy and awareness of various financial

services and institutions can play a crucial path breaking role.

1.1.1 The Indian Scenario

In the Indian context, the need for financial literacy is accentuated by the low levels of

literacy and the large section of the population, which still remains out of the formal

financial setup.

Of the total workforce of 321 million, 70% of them have cash income, of which 48%

have no savings in any form. This 48% forms a large enough part of the population and

even more appalling is the skewed ratio of the Urban versus Rural population in it. In this

48% “No Savings” segment, only 20% of them are Urban and the rest 80% is rural (IIMS

Survey, 2007).

Even in credit, as the table 1 below indicates, the most popular source of loans across

income classes is through informal ways. This is more so true in case of the two lowest

income segments where borrowing from formal institutions is still a rare phenomenon.

The other interesting finding was that less than 25% of those with cash incomes had

outstanding loans in 2007.


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Source: IIMS Survey 2007

Over the last decade, the sharp growth in credit has accentuated indebtedness of

households. For instance, in the case of farmers, as per the Situation Assessment Survey

(SAS) of farmers conducted by the NSSO, of the 89.33 million farmer households

estimated in 2003, 43.42 million (48.6 per cent) were indebted. The average outstanding

debt per farmer household was at Rs.12,585. The total debt of farmer households was

estimated at Rs. 1.12 lakh crore in 2003, of which Rs.65,000 crore was from institutional

sources and Rs.48,000 crore from non-institutional agencies. Private moneylenders

accounted for Rs.29,000 crore and traders Rs.6,000 crore. About Rs.18,000 crore of debt

from non-institutional sources, a major portion of which was from moneylenders carried

an interest rate greater than 30 per cent. Although credit to agriculture from the banking

system has substantially increased after June 2004, the informal finance still plays a

significant part in rural areas.

In a large number of cases, the poor households shy away from formal institutions, due to

lack of knowledge on the same and are consequently pushed towards expensive

alternatives. Not only this, even the challenges of household cash management under

these difficult circumstances with only a few resources to fall back on, are also

accentuated by the lack of understanding of one‟s own financial matters.

1.1.2 Financial Literacy and Its scope

In the context of 'financial inclusion', the scope of financial literacy acquires greater

significance, since it could be an important factor in the very access of such excluded

groups to financial institutions and thereby receive various services. Further, financial

literacy is particularly relevant for people who are resource-poor and operate at the

margin and are vulnerable to persistent downward financial pressures. In fact, in a

country like India, this process of financial education may invariably involve addressing

deep entrenched behavioural and psychological factors that could be major barriers.

Organization for Economic Co-operation and Development (OECD) has defined

financial education as “the process by which financial consumers/ investors improve their

<=0.5 0.5 - 1.0 1.0 - 1.5 1.5 - 2.5 > 2.5

Relatives / friends 37.5 34.1 28.5 26.5 24.7

Moneylenders 37.2 20.7 13.7 11.8 7.5

Banks 13.9 36.7 49.4 63.2 62.8

Self Help Groups 9.1 4.2 1.0 0.5 4.0

Co-op societies 5.2 7.1 10.5 4.8 3.7

Chit funds/NBFCs 1.7 1.5 1.3 1.3 0.4

Micro finance institutions 1.2 1.0 0.9 0.4 1.9

Others 1.0 1.0 1.1 2.0 3.0

Loan SourcesAnnual income of borrowers (Rs.lakh)

Table 1: Income Profile of Borrowers By Loan Source


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understanding of financial products, concepts and risks, and through information,

instruction and/or objective advice, develop the skills and confidence to become more

aware of financial risks and opportunities, to make informed choices, to know where to

go for help, and to take other effective actions to improve their financial well-being”

Thus, Financial Literacy is the capacity to improve one‟s own financial status and well

being by taking informed decisions in creating household budgets, initiating savings

plans, managing debt, preparing ahead of time for life cycle needs and dealing with

unexpected emergencies without assuming unnecessary debt. In India, this kind of

financial literacy is critical and acts as an important adjuvant for promoting financial

inclusion and thereon, financial stability of the poor households.

1.1.3 Financial literacy initiatives by RBI

Under the recent financial literacy drive in 2007 by the Reserve Bank, the concept of

financial education and awareness has taken a whole new dimension. Their project titled

"Project Financial Literacy" gives directives on disseminating information regarding the

central bank and general banking concepts to various target groups, such as, school and

college going children, women, rural and urban poor, defence personnel and senior

citizens.

Under this project, the Reserve Bank had emphasized the need for credit and technical

counselling for increasing the viability of credit, particularly in the relatively under-

developed regions. In the light of the recommendations of the two working groups, and in

terms of the Annual Policy Statement of 2007-08, the convener banks of the State/Union

Territory Level Bankers‟ Committees were advised in May 2007 to set up, on a pilot

basis, a financial literacy and credit counselling centre in the State/Union Territory,

coming under their jurisdiction. Further, based on the experience gained, the concerned

Lead Banks were advised to set up such centres in other districts.

Initiatives taken by some Banks

A few banks have already taken initiatives in opening credit counselling centres in the

country. An Internal Group constituted by the Reserve Bank to study credit counselling

initiatives, visited some of the counselling centres in the state of Maharashtra viz.,

„ABHAY‟ counselling centre (an initiative of Bank of India); Disha Trust (an initiative of

ICICI Bank Ltd.) and Grameen Paramarsh Kendras (an initiative of Bank of Baroda).

Thus, in the recent years after RBI ventured into this space, financial literacy has picked

up pace and is now being imparted not only by the afore mentioned banks, but also by

various other independent organizations like funding agencies, NGOs etc. because it is

now being seen as empowering the vulnerable poor and enhancing their income through

informed decision making in financial matters.


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Dissemination of such knowledge pertaining to various financial services and products is

being imparted in different forms and modules by different organizations across India. By

drawing the best practices and the right modules of delivery from these different

programs, we can get the directions for developing a coherent and apposite Financial

Literacy Package for the marginalized and unbanked section of people. Such a package

can empower the masses to avail various financial services and products to their

advantage and understanding of personal finance to take effective action to improve

overall well-being and avoid distress in matters that are financial in nature.

1.2 Objective of The Study

The project undertaken by BASIX from UNDP is titled “Assessment Study of design and

delivery of Financial Literacy among poor across 7 UN Focus states.” The project is an

integral part of UNDP‟s Poverty Reduction Programme for 2008-12.

The objective of the program is to:

Understand the effectiveness of various financial literacy programs in vogue in

terms of knowledge gained and retained by participants, practicing it in their day

to day financial matters

Analyze the Program‟s impact on enhanced use of financial services.

To provide a critical analysis of the financial literacy programs so as to bring into

light the best practices in the delivery of Financial Literacy Instruments and

packages and their relevance for enhanced financial inclusion.

This involves conducting a perception survey capturing the understanding among poor

about various components of financial literacy and also, delineating the relation between

their level of understanding in reference to the program they had undergone.

Hence, the basic objective of the whole study underlies in giving a wholesome analysis of

various Financial Literacy Packages available and henceforth, recommendations for

developing a highly effective new package in the near future.


UN Focus states

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2 Methodology

2.1 Design of Survey

The methodology adopted for carrying the assessment study consisted of two parts- a

primary and a secondary analysis of financial literacy packages in vogue. This involved

evaluation of all types of financial literacy drives aimed at enhancing financial inclusion

initiatives already in vogue. The financial literacy packages taken into consideration for

this project include:

All formal financial literacy programs conducted as training on various FL

modules by different organizations,

Programs run by Credit Counselling Centres and their recently improved

comprehensive version called FLCC- Financial Literacy and Credit Counselling

SHG capacity building programs

MFI counselling which involve a short training on financial services and practices

All such afore mentioned programs were surveyed by using 2 methodologies- a primary

and a secondary data survey conducted in the seven UN focus states of India- Bihar,

Jharkhand, Chhattisgarh, Madhya Pradesh, Uttar Pradesh, Rajasthan, Orissa. The survey

was conducted on 5637 respondents across all the 7states. The technique used for the

survey was purposive sampling with the respondents specifically chosen from low

income households who had undergone some or the other Financial Training program.

The primary data survey was captured in two forms: a quantitative approach and a

qualitative approach.

The quantitative approach constituted a comprehensive questionnaire to test the

effectiveness and impact of FL training programs. The questionnaire was

designed to capture information on mainly the following three aspects:

- Their behaviour and day to day practices in financial matters

- Understanding of various financial services and institutions and how the FL

training program has enhanced it

- Enhanced use of various financial services and products post FL training program

Knowledge of the above mentioned components for various FL training programs

constituted the primary section of the survey. So, it can be seen as primarily

quantitative data as captured in the questionnaire.

For capturing the qualitative data, the Qualitative information sheets were to be

filled by each of the field investigators at the end of each day. This had qualitative

questions on their observations and findings from the field, pertaining to

effectiveness of FL training programs and the views expressed by the

respondents. It essentially dealt with the views and opinions of the beneficiaries


UN Focus states

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on gaps and impact of the program and any intriguing observations by the

investigators from their field exposure.

The secondary section of the survey included qualitative information on finer nuances

specific to each FL training program, views and needs expressed by primary stakeholder,

i.e. the poor and the opinion of other stakeholders including service providers and NGOs

on the effectiveness of various FL training packages. The secondary data was captured in

the following forms.

- On the macro level, each of the state heads was required to collect secondary data

on the effectiveness of FL training programs in their respective states. A definite

format termed as the “State template” (attached in annexure) was designed for

this purpose. The state template included descriptive information about the overall

scenario of FL training programs in the state and then, further moving down to

specific information on each of the programs. The latter included the modules and

methods of delivery used for training, the effectiveness of the programs from the

stand point of both the respondents as well as the implementing agencies and the

pros and cons of the program, all captured in a descriptive format.

This secondary data along with the assessment study findings from the primary data

together became the point of reference for doing the final analysis on effectiveness of FL

training programs in vogue.

Both the primary and the secondary sections of the survey were improvised a lot after

conducting an initial pilot study in 2 regions, the Gaya district of Bihar and the Tonk

district of Rajasthan. The pilot study was conducted on more than 100 respondents in

these two states. Based on the experience gained through the pilot, learnings were drawn

and the design of the survey was improved many folds, as described in the next section.

2.2 Pilot Testing

The main focus and objective of pilot testing was to assess the effectiveness of the

Survey Instruments in capturing the intended data and information from the respondents.

Following were the critical points of review through the Pilot Testing:

i. Logical flow of information and data

It was found that the flow of Questions in the pilot version was improper. In the original

structure questions under the same category - Saving, Borrowing and Insurance- were

placed at different places and this resulted in a repetition of questions as well as

discontinuity and inconvenience in putting the questions across to the respondents. Thus,

the questionnaire was improvised by keeping all the relevant questions of each of the

categories (Saving, Borrowing & Insurance) into their respective category, sequentially

ii. Effectiveness of questions and check list

Removed some unnecessary and redundant questions/ options and added some relevant

ones to make the questionnaire more effective.


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iii. Effectiveness of phrasing of questions and amenability for lucid communication

In the Hindi version of the questionnaire, a lot of the questions were reframed into a

respondent friendly, easy to comprehend way.

iv. Time estimate for comprehensively filling the questionnaire

The questionnaire was improvised for a better flow and made more compact by

integrating certain questions and removing some unnecessary ones. This reduced the total

number of questions from 75 to 52 and also significantly reduced the time per

questionnaire from 45 minutes to 25 minutes.

The pilot testing gave comprehensive information on quality and effectiveness of Survey

Instruments based on which the finalized survey Instruments were designed. One of the

most critical point that came out of the pilot testing was regarding the need for a

qualitative information sheet. A crucial observation from the field testing of the survey in

the pilot phase was that the field investigators came across a lot of issues and suggestions

from the respondents regarding FL Training programs but such qualitative information

was not being captured anywhere in the objective format of the questionnaire. Hence, a

need was realized to capture these finer nuances specific to each FL training program on

views and needs expressed by the respondents, the specific pros and cons of a FL training

program as observed by the field investigators and also, as stated by the respondents.

Hence, after the pilot, a qualitative information sheet was designed to be filled by the

field investigators to capture such crucial information that would facilitate to get a

comprehensive analysis in the end.

2.3 Design of Questionnaire

As discussed above, the questionnaire was finalized after the pilot testing of the initial

draft. The final questionnaire had mainly five sections as follows:

- Basic profile of the respondent

- Behaviour and day to day practices on financial matters which included questions

on budgeting practices

- Savings related Questions

- Credit related Questions

- Insurance related Questions

All the questions, in each of the above mentioned categories give a detailed idea of the

financial practices followed by the respondents and the content covered under these

categories in the FL training program. The questions go a step further to ask the

respondents about how the knowledge and usage of various financial services and

products under each of those categories has changed after attending the FL training

program. Thus, the components included in each of the categories i.e. Budgeting,

Savings, Credit and Insurance, can be summed up as follows:

Level of understanding of various financial services, Institutions and products in

each of the categories.

Usage of the different financial services and products in each of those categories


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Finally, the major part of it dealt with the content of the FL training program

under each of those categories and the consequent knowledge gained and various

services used after attending the program.

The final questionnaire can be seen in Annexure I.

2.4 Rationale for the Total Sample

The technique used in the survey was purposive sampling under which the respondents

had to be chosen from people who had undergone some financial literacy program. Even

under this assumption, all the state teams were given a priority order for choosing the

respondents from different Financial Training Programs.

(1) First of all, emphasis was laid on choosing respondents from formal financial

training programs by any organization.

(2) After covering all possible formal FL programs, respondents could be chosen

from FLCC conducted by various banks- (Financial Literacy Credit Counselling

as per RBI guidelines). After covering FLCC programs going on in the states,

respondents could be chosen from training through CC (Credit counselling

Centres), SHG capacity Building programs, NGO-MFI or MFI Counselling and

other such elementary training programs.

All programs mentioned above in point (2) have been defined as informal programs for

the purpose of our study and hence, the states were given directives to try and choose

maximum respondents from formal programs i.e. (1) and then, the remaining number

from Informal ones i.e. (2).

The final sampling for each of the states was as follows:

Table 2: Final Sampling for each of the States

Type of

Training

Program

Bihar Chhattisgar

h

Jharkhan

d

Madhya

Pradesh

Orissa Rajastha

n

Uttar

Pradesh

ALL

INDI

A

Informal 699 270 671 341 216 460 416 3073

Formal 138 517 491 310 624 2080

Total

Participants

837 270 671 858 707 770 1040 5153

None 65 30 204 47 119 19 484

Total

Respondents

902 300 875 905 707 889 1059 5637

After identifying all the formal and informal programs going on in a state, the sampling

was done in a way such that it was representative of the state. Also, care was taken not to

concentrate the sampling around big towns or cities and thereby cover far flung areas and

also, cover backward districts and regions like Bundelkhand region in U.P.


UN Focus states

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2.5 Description of The Respondents Chosen for The Survey

The choice of the locations per block was purposive through discussions with Gram

Panchayats, Block officials, local bank branches and the local NGOs who had conducted

FL training programs, so as to ensure representation of women, SC, ST, Muslims, PWD,

PWHA and aged.

Invariably the sample across all states has more percentage of female respondents

because most of the formal as well as informal programs targeted SHG members. So, the

sample is biased towards women with an average of 70% female respondents across all

states.

As far as the literacy levels of the respondents are concerned, about 50% of the

respondents chosen were totally illiterate. Also, majority of the respondents (more than

70%) were chosen from the extremely poor category with an annual income of less than

Rs. 40,000.

Also, the respondents were evenly distributed among different occupational categories

primarily consisting of cultivation, wage labour and various nonfarm activities.

Since the respondents were chosen majorly from people who had attended some or the

other financial literacy program, therefore, more than 50% of the total respondents had

bank accounts and also, more than 60% were members of SHGs.

Thus, respondents were selected across different states based on the purposive sampling

technique of selecting respondents from poor households, who had undergone some form

of financial literacy in the past.

2.6 Criteria of the Proposed Area for Survey

The state wise area surveyed for the entire survey was as follows:

Table 3: State Wise Area Surveyed

State Name of Districts Total

District

(No.)

Total

blocks

(No.)

Total

location

(No.)

Total

respondents(No.)

Rajasthan Ajmer 6 18 118 889

Alwar

Jodhpur

Dungarpur

Udaipur

Tonk

Jharkhand Pakur 7 19 76 875


UN Focus states

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State Name of Districts Total

District

(No.)

Total

blocks

(No.)

Total

location

(No.)

Total

respondents(No.)

Dumka

Garhwa

Hazaribagh

Ramgardh

Khunti

Ranchi

Chhattisgarh Korba 4 6 12 300

Durg

Mahasmund

Bilaspur

MP Indore 7 15 55 905

Dewas

Ratlam

Gawalior

Raisen

Vidisha

Satna

Bihar Jahanabad 7 19 19 902

Vaishali

Bhagalpur

Nalanda

Katihar

Seohar

E.Champaran

Orissa Nayagardh 3 9 9 707

Cuttack

Sambalpur

U.P. Jaunpur 9 14 43 1059

Mirzapur

Varanasi

Agra

RaiBareli

Jhansi

Baharaich

Meerut

Lucknow

As stated earlier, there were two primary criteria for choosing the survey location:

Firstly, taking well distributed respondents from all the prominent financial literacy

programs both formal and informal, going on in the state


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Secondly, within the areas where these programs are being conducted, the sampling was

done in a way such that, it was representative of the state (i.e. covering east, west, central,

north and south regions uniformly) ensuring a proper coverage of far flung backward

areas as well.

As per these criteria, the final sampling done according to various Financial Literacy

Packages – formal and informal- was as follows: Table 4: Final Sampling done according to various Financial Literacy Packages – Formal and

Informal

State District FFL Formal Program Informal - SHG Informal Programs

Orissa Sambal-pur 491 ISMW-

NABARD

216 SHG CB from ADARSA

and Netaji Jubak Sangha

NGOs

Nayagarh ISMW-

NABARD

SHG CB from Harijan

Adivasi Mangal Samiti and

ORIDA NGOs

Salepur ISMW-

NABARD

SHG CB from CYSD

Chhattisgarh Korba Nil 187 SHG CB from SROUT

Durg

Mahasmund Nil Dena Bank FLCC

Programme that to 2 years

before

Bilaspur Nil SHG CB from Sakhi

Cooperative

Madhya

Pradesh

Indore 517 ISMW-SEWA

Cooperative

343 Nil

Dewas ISMW-SEWA

Cooperative

Nil

Ratlam Nil SHG from Dhan and Central

Bank of India, FLCC

Raisen Nil SHG CB from Lupin and

Setin

Vidisha Nil PNB FLCC and RUDSETI

Chindwar Nil PARARTH (an NGO-MFI),

SHG and mF programme

Gwalior ISMW-VAMA

Society

ICDS-SHG

Satna ISMW-Anupama

Society

Nil

Uttar

Pradesh

Jaunpur 624 UNDP-ISMW 418 Nil

Mirzapur UNDP-ISMW Nil

Agra UNDP-

NABARD - BCT

NGO

VDP-NABARD - Bal

Chetana Trust

Varnasi Nil Cashpor MFI

Lucknow Nil NEED MFI

Rae Barelli Nil Bank of Baroda FLCC -cum-

Rajeev Gandhi Trust

Pariyojna (SHG)


UN Focus states

Page 15 of 108


Jhansi UNDP-

NABARD

NABARD-Development

Alternatives (SHG)

Baharaich UNDP-

NABARD

Nil

Meerut UNDP-

NABARD

Nil

Bihar Jehanabad 138 RBI 699 Women Dev. Corporation -

SHG promoting

Nalanda RBI (BRLP-27 members and

WDC-SHG -50 members)

Sheohar NABARD Nil

vaishali Nil (WDC-SHG: 107; Nidaan-

SHG: 48)

Bhagalpur Nil Women Dev. Corporation -

SHG promoting, MFIs

Katihar Nil Nidaan SHG, MFIs

Purbi

Champaran

Nil Women Dev. Corporation -

SHG promoting

Rajasthan Tonk 213 ISMW 514 SGSY

Ajmer Nil SGSY; Aruna Seva

Samsthan; Bank of Baroda

FLCC; SKS

Alwar Nil Ibtaba-SHG; PNB; MFI

Jodhpur Nil Pushtikar Laghu Vya Parik

Samstha; Samaj Seva

Samastha; UCO; RBI; SBBJ

Dungarpur Nil PEDO (Sakhi

Programme):89 mem;

SGSY:10

Udaipur Nil Krishi Sahatya; Bank of

Baroda, LIC, SBI

Jharkhand Pakur -

Nil 779 Nav Bharat Jagruthi Kendra

(NBJK), Lok Prerna, Jan

Jagran Kendra- SHG

capacity building

programme, Block office

(LEO)- SHG programme

Dumka Nil NBJK, Lok Prerna- SHG

capacity building

programme, Tribal

development Society

Garhwa Nil Integrated Development

Foundation; Alternative for

India Development; SBI

villag meeting

Sarai Kela Nil TSRDS- SHG capacity

building programme,

Sahiyogi Mahila Kendra-

SHG capacity building

programme and Pradan.


UN Focus states

Page 16 of 108


Ramgarh Nil NBJK,KSRA,KGVK- SHG

capacity building programme

Khunti Nil NBJK,KSRA,KGVK- SHG


& Vikas Bharti's SHG

Programme

Ranchi Nil NBJK,KSRA,KGVK- SHG


& Vikas Bharti's SHG

Programme

2.7 Procedure Adopted

Central Process

Training of Trainers – TOT

A training session for all state heads was first done at a central location i.e. in

Delhi. It was a one day long training program for the state heads where all

information pertaining to the survey was given to them. It included detailing the

objective of the project with specific and detailed directives on how to conduct

the survey in each of the states, complete understanding of the survey

questionnaire and other secondary tools to be used in the survey. Specific

directives on selection of areas and respondents were given to the state heads.

Under each state head, 3 supervisors were designated for each block, with 5 field

investigators under each supervisor.

State Level Process

1. In each state, identification of all possible- previous and ongoing FL programs

was the critical task for finalizing the selection of sample areas. For this, each of

the state heads did extensive groundwork to identify the various programs and

consequently, held meetings with the concerned organizations; this included

banks, NGOs, MFIs. Information was gathered from both, the sponsoring

agencies and the implementing agencies.

2. Training of Field investigators- it was a two step process:

Firstly, classroom training was done with role play of the entire questionnaire;

explaining in detail the purpose of each question. To keep this uniform across all

states, a guideline for all the trainers was provided on the questionnaire.

Secondly, a complete monitoring of the investigators was done by the supervisors

on day one, checking proper delivery of the survey tools. A feedback session was

conducted on the same day for improvising the faults in the delivery of the

questionnaire and for ensuring adequate quality and uniformity. At this stage

some of the incompetent investigators were also removed.


UN Focus states

Page 17 of 108

This twofold training technique ensured that the state teams understand the objective,

methodology, tools and process of the survey adequately.

Thereafter, the final survey was conducted in a specific time frame for each of the 7

states.

2.8 Data collation

The data from all the states was collected at a central point (in Hyderabad) and the data

entry was followed by generation of data in a tabular and organized format using the

software- Business Objects (BO).

Analysis Structure

A broad framework of the structure of analysis for each of the states is as follows:

Profile information

- Caste

- Religion

- Gender

- Age distribution

- Average family size

- House type

- Literacy level

- Sources of Income (primary and secondary)

- Household income

- Usage of various services

Income wise analysis of General Behaviour

- General behaviour trend on budgeting, deficit/surplus management and

savings

Financial Literacy Program (FLP) wise analysis of –

- Savings and Budgeting

- Credit

- Insurance

This also includes a general awareness of the above features, content covered and

understanding of the same and followed by enhanced usage after the program.

Perception of the FLP Program

In the perception, the analysis was done for their willingness to attend another

program, responses on the tools used, duration of the program and its adequacy as

well as their overall satisfaction of the program.

Gender wise analysis

Empowerment of women post FLP

Draft Report - Assessment Study of design and delivery of Financial Literacy among poor across 7 UN Focus states

Page 18 of 108

3. Secondary Data

Rajasthan – Secondary Data

Table 5: Rajasthan – Secondary Data S.

No.

Name of the

programme

Name of the

institution

Objective Duration Content Pedagogy Effectiveness Impact Remarks

1

UNDP

Financial Literacy

Programme

(Trainer: ISMW;

Facilitator:

RMoL)

Cecoedecon 1. To create

awareness, educate and inform the target

group on various

financial services, products available in

the larket, investments

and risk mitigation tools, govt. policies

and financial

institutions. 2. Providing ways to

improve fin.

Education and literacy standards through the

development of

common financial literacy principles.

3. Development of

decision making process to set and

implement financial

goals. 4. Ability to relate

financial decisions to

personal and societal consequences

5. Describe the role of

planning and maintaining a

balanced budget

6. Understand credit uses and costs and the

impact of credit on

money management.

2 days (5

hours per day)

Budgeting & Planning:

Household income and expenditure planning;

small savings; avoidable

expenses reduction, smart spending,

Savings:

Smart savings, Schemes of the bank, types and modes

of accounts, bank account operation; importance of

savings; enhancing

savings; use of savings in productive purposes;

investment of savings

Credit: Importance of credit from

formal source; source of

loans for poor BPL, SC/ST families; types of loans;

modalities of loans;

repayment methods; Return on Investment

Insurance:

Types of insurance schemes, institutions that

provide insurance, process

of availing, mode of claiming, what to insure,

etc.

Others: Gender issues

SHG and organization

Pension

Stories,

lecture, film, counselling,

group

exercise, games, role

play,

Flipcharts, videos, charts,

pictures,

brochures

Continuous

monitoring and evaluation

Banks have very

little reach towards the

communities.

The women have fairly good

knowledge of

Banking operations after

the project. Now

they are able to open accounts

for themselves.

A federation of

SHGs promoted

by Cecoedecon (Saathin) has

registered almost

10 times increase in membership

after the project,

as a result of the awareness, and

all groups have

bank accounts.

Defunct SHGs

were revived and misuse of

resources was

reduced to a great extent.

It is Government driven initiative

through RMOL and supported by UNDP. The other important

feature is that the SHG members

were given the training who had some prior exposure to financial

transactions. Does build a case for

providing training to SHGs for higher outreach and greater

impact.

Duration is too short for coverage

of all the topics in detail.


Page 19 of 108

S.

No.

Name of the

programme

Name of the

institution


2

Financial

Inclusion

through Financial

Literacy

State Bank

of Bikaner

and Jaipur

To achieve financial

inclusion in maximum

number of villages. Help create awareness

among rural people

for employment generation and

financial inclusion.

1 day Budgeting & Planning

Household income and

expenditure planning; small savings; avoidable

expenses reduction.

Saving Schemes of the bank, types

and modes of accounts,

bank account operation; importance of savings;

enhancing savings; use of

savings in productive purposes; investment of

savings

Credit Importance of credit from

formal source; source of

loans for poor BPL, SC/ST families; types of loans;

modalities of loans;

repayment methods; Return on Investment

Others Identifying a fake note;

features of a real currency

note

Stories

Lecture

Film Counselling

group -

exercise games

Continuous

M&E

Handholding

Impact is not

measured

It is a single day program where

the focus is more on savings and

credit in a camp mode. Hence, it is less comprehensive. Moreover,

the duration is less and there

could be major problem in retention.

There are some NGOs like PEDO in Dungarpur and IBTADA in Alwar who are running micro-finance operations and also involved

in training of the SHG and their Federations in micro-finance. These training programs are quite comprehensive and the aim is

towards financial inclusion. But it is limited to services required by the SHGs and possible linkages that could be built around them.

This does not deal with entire gamut of services required by the poor such as budgeting and insurance. These capacity building is an

integral part of their micro-finance program. However, both these institutions have been sourced to provide training on SHGs in the

state and are very comprehensive about it.

The only structured financial literacy program running in the state of Rajasthan is the UNDP supported financial literacy program

being managed by Rajasthan Mission on Livelihoods. The initiative by Government of Rajasthan is laudable but the outreach is quite

limited. There is a need for more local level institution to participate in the financial literacy drive on an ongoing basis. For the same,


Page 20 of 108

funds need to be allocated. Secondly, there has to be monitoring agency for rolling out the program as well as maintaining the quality

of the program/

The RBI supported financial literacy program in the state is also being implemented by the SBBJ in 9 districts where they are Lead

Bank. According to the officials of the Lead Bank Cell in the bank that it has been running such programs through Farmers Clubs, etc.

and distributing material and pamphlets to participants. Again, there is an element of improvisation done in various programs in

absence of a structured approach. The lacunae is that it is still credit focussed and do not aim at basic level financial literacy but gives

an idea of the institutional services, especially those of the banks.

Thus financial literacy campaign is only limited one structured program while the other programs are either semi-structured (SHG

Capacity Building- a more process orientation) or impromptu in nature (Lead Bank Promoted programs). The coverage is quite low in

comparison to demand and hence there is a need to build a more comprehensive plan and its roll out for greater financial literacy and

inclusion.


Page 21 of 108

Uttar Pradesh – Secondary Data

Table 6: Uttar Pradesh – Secondary Data S.

No.

Name of the

programme

Name of

the

institution


1

Financial

Literacy for

Poor Women

(Sponsored by: UNDP

through

ISMW) – Project

period was

Dec.‟09 to 15th of

Feb.‟10

Mahila

Prabhodini

Foundation

To build awareness

for Financial

Planning or

Thinking about life

cycle needs.

To build knowledge about basic financial

concepts to enable

financial decisions on

inform choices –

option risks and

returns.

Create demand for

financial services.

To build basic

financial skills like preparing a budget or

plan and for availing

of financial services.

Proper and productive

use of credit, timely

repayment

scaling up.

9 hours (i.e.,

3 hours per

day)

a. Financial Planning (Life-

cycle needs, Vicious Cycle of

Poverty, Financial Decisions,

Components of Financial Planning, Planner V/s Non-

Planner, Current Status V/s

Planned Status, Fungibles of Money)

b. Savings (How to Save,

Concepts in Savings, Saver V/s Spender, Purpose wise Saving,

Deciding your goals, Saving

Services, Relationship between

income/expense and savings,

Power of Compounding)

c. Borrowing

(When-How and Why we

borrow and from Whom; Pre

and Post Borrowing Factors, Reducing vs. Flat Rate of

Interest, Borrowing for

Productive purpose, Options available for borrowings,

How much debt should one

take, Attributes of

Borrowing)

d. Spending

(Define consumption: Need vs. Want, Avoid wants and spend

judiciously on needs,

Managing Big-Ticket Expenses, Creating a Need

Account)

e. Intelligent (Investment and Budgeting,

Capital Formation, Make a

Financial Plan, Make a

Budget, Active Vs. Passive

Income, Keep investing,

Mitigate Risk (insurance),

Flip charts

Videos

Games

Role Play

Pictorial Book let

Budget Book

Charts

Street Plays

Hand holding

support up to

FI (up to 3.5

months project

period). Now

also, facilitating to

community.

But, if fund allocates, they

will support in

effective

manner

It had shown lot

of impact on

awareness levels

and empowered the BPL women.

Achievements:

(i) 936 saving

bank (no frill)

accounts opened.

(ii) 1418

documents in

process for

opening

saving(no frill) bank accounts.

(iii) 658

applications under process

for life

insurance (Jana shree Bima)

(iv) 224

applications collected for

pension under

government social security

scheme.

(v)Rs.8,600 since deposited

in 161 saving

bank accounts

The impact in

Jaunpur

District was

higher in comparison to

Mirzapur and

Sant Rabidas districts. The

possible

reason is that Banks were

more co-

operative in

Jaunpur, The

knowledge

about no-frill accounts was

observed to be

less among bankers.


Page 22 of 108

S.

No.

Name of the

programme

Name of

the

institution


Financial Independence)

f. Financial products and

services including

Government schemes

(Formal financial service /

providers, product and services available in the

area;

Operational procedure, form filling, account opening,

operation KYC, pass book,

nominating, grievance redressal mechanism;

Central / State Government

schemes and initiative / intervention made by other

agencies for the poor and

disadvantaged groups in the area; Social security, rights

and responsibilities)

2

NABRD-UNDP

Collaboration

project on Financial

Literacy in

UP. Project period was 2

weeks

between Dec.‟09 to

Jan.‟10

NABARD (through

local

NGOs)

Financial Inclusion through Financial Literacy

1 or 2 days per village

a. What is FL b. Info on 5 components of

FL

c. Why and how FL is useful?

d. Importance on Savings,

loaning, remittance, budgeting and very less

on insurance

e. Operational knowledge on opening bank

account, loaning,

remittance f. How to Identify the

currency note of

Rs.500/- and Rs. 1000/-

1. Two Videos (Ganga-Jamuna and

Raju –ka-phed)

2. Lukat Natak / Puppet Show / Street

Play

3. Lecture 4. Quiz for students

of various schools,

colleges and villagers 5. Wall Painting

(Quiz, wall painting

was happened in very few villages)

6. Block level

meeting for bankers and NGOs

No. But, it found in

Agra,

Baharach, districts. But,

in all district,

as a part of Village

Development

Programme, FI is taking

part.

Officers told it is less time to

see the impact.

On field observation:

Programme

piloted in different parts of

U.P. So, it

reached to all communities

like who are

staying in tribal belt areas and

minority

population etc. In Baharaich

district, It also

covered the un-revenue tribal

adhivasi village

at Bichaiah.

In Agra, NGO inspired and

open the

Credit Counselling

Center at

Village. In Baharach,

NGO

contributed a lot to empower

the tribal

community. State office are

not

maintaining any type of

report.


Page 23 of 108

S.

No.

Name of the

programme

Name of

the

institution


3

NABARD –

VDP

Programme (Selected

NGOs and

Liaison with all Govt.

Programmes

like DRDA, WATSAN,

KVIC, Social

Welfare, Health,

Education

etc)

NABARD To make the model village

through convergence with

various government institutions

Continuous

process

a. Conducted PRA in

all 5 villages

b. Sharing about all government

schemes

c. Conducting meetings

d. Organizing

trainings e. Financial Literacy:

covering all topics

where mentioned in above

NABARD

programme

Interaction

Practical method

Lecture Films

Puppet Show

Quiz for schools and colleges

Block level meeting

for NGOs and bankers

Handholding

support

It could not see

in short period

Pilot project

for Integrated

Development of back ward

block (PPID).

4

SAARATHI

-Financial

Literacy Credit

Counselling

Center (Initiated in

8th of

Jan.‟10)

Bank of

Baroda

Financial Inclusion through

Financial Literacy

Continuation

process

(Timing – 11AM to

2PM

a. Opening bank

account

b. Operational knowledge on FL

services

c. Procedure for loaning, savings

and insurance

system d. Government

schemes

e. Identification of Rs.500/- and Rs.

1000/- notes

Interaction

Pamphlet distribution

to all banks RBI – Raju ka phed

booklets

- It could not see

in short period

Here, women

empowerment

is high. Women are

involving very

high in decision

making.

Rajeev Gandhi Mahila Vikas

Pariyojana

(RGMVP) is working.

***Very High

Impact , because, skill

training,

Women empowerment

through SHG,

awareness on FL Programme

all together in

one place ***


Page 24 of 108

S.

No.

Name of the

programme

Name of

the

institution


5 Financial

Literacy

Credit Counselling

Center

(Initiated in 15th of

Jan.‟10)

Union

Bank of

India

Financial Inclusion through

Financial Literacy

Continuation

process

(Timing – 10 to 2PM

and 4 to

7PM)

a. Opening bank

account

b. Operational knowledge on FL

services

c. Procedure for loaning, savings

and insurance

system d. Government

schemes

e. Identification of Rs.500/- and Rs.

1000/- notes

Inter action (direct)

Phone call

Planning to print Pamphlet and

distribute

- It could not see

in short period

According to

RBI rule, hired

retired person

6 Financial Counselling

through

Financial Literacy

(Initiated in

July‟07)

Disha Providing free Financial Literacy to low and medium

income families

It varies from state to

state. But 6

hours per day

a. Financial Education (on

investments,

savings, etc) b. Credit Counselling

c. Debt Management

-Walk-in (Direct interaction)

-Caller (Phone Call)

- SMS -E-mail

It varies from client to client

On and average, per 3months, a

branch is giving

following services:

Minimum 50

walkers, 250 callers, 100 sms

and 15 e-mails

Mumbai, ICICI is

heading by

Disha. This comes under

social

objective of ICICI

Formal Financial Literacy:

i) Indian School of Microfinance for Women:

From December‟09 to 15th

of Feb.‟10, ISMW had done a UNDP pilot project on financial literacy for Financial Inclusion in 3

districts of Uttar Pradesh. The details are given below:

Deliverables for pilot project:

a. 2400 target group women to derive the various benefits related to attitudinal change, awareness about the financial

services and developing personal financial management skills and operational knowledge to avail financial services.


Page 25 of 108

b. 800 women to avail at least one or more financial services.

Spread for ISMW FL programme:

Table 7: Spread for ISMW FL programme

District Block Village No. of beneficiary

Jaunpur 2 17 750

Mirzapur 1 8 1034

Sant Ravidas Nagar 1 1 992

Total: 3 districts 4 26 2776

ii) National Bank for Agriculture and Rural Development:

NABARD had done a UNDP pilot project on Financial Literacy for Financial Inclusion in 14 districts of U.P. It had conducted state

level training programme to their district officials and NGO heads of all districts, it was facilitated by ISMW. Later, NABARD and

local partners had facilitated Block level workshops for NGOs, RRBs, bankers and Government line departments like DRDA, etc.


Page 26 of 108

NABARD-UNDP Collaboration Project on Financial Inclusion (through Financial Literacy)

Table 8: NABARD-UNDP Collaboration Project on Financial Inclusion (through Financial Literacy)

S. No. Name of the

District

No. of

villages

covered

No. district wise meeting with

NGOs, Bankers, LDM, Local

leaders….

No. of villages

having village

level meeting

(interacting

with PACS,

SHGs)

Puppet Shows

/ Nukkad

Nataks was

happened in

no. of villages

Quiz

Programme

at Schools

and

colleges

Wall

Painting

with slogan

Remarks

1

Allahabad

5

1 meeting

5

5

5

0

Not visited

2

Agra

6

1 meeting

6

6

6

0

NGO started

Credit Counselling

Center at Village

level. It is useful

for 3 neighbour

villages. Visited 1

FFL and 4 VDP.

3

Firozabad

4

1 meeting

4

5

5

5

Not visited

4

Azamgarh

5

1 meeting

5

5

5

0

Not visited

5

Baharaich

4

1 meeting

4

4

4

0

Visited non-

revenue village.

Good at Education

system

6

Bareily

5

1 meeting

5

5

1

0

Not visited

7

Barabanki

5

1 meeting

5

5

2

5

Not visited

8

Jhansi

5

1 meeting

5

2

2

0

Visited

9

Sitapur

5

1 meeting

5

5

5

0

Not visited


Page 27 of 108

S. No. Name of the

District

No. of

villages

covered

No. district wise meeting with

NGOs, Bankers, LDM, Local

leaders….

No. of villages

having village

level meeting

(interacting

with PACS,

SHGs)

Puppet Shows

/ Nukkad

Nataks was

happened in

no. of villages

Quiz

Programme

at Schools

and

colleges

Wall

Painting

with slogan

Remarks

10 Moradabad 5 1 meeting 5 5 5 0 Not visited

11

Unnao

5

1 meeting

5

5

4

0

Not visited

12

Gonda

4

1 meeting

4

4

4

0

Not visited

13

Etawah

5

1 meeting

5

0

5

0

Not visited

14

Meerut

5

1 meeting

5

2

5

0

Visited

Financial Literacy Credit Counselling Centres:

“SAARATHI” FLCC (Bank of Baroda): It was initiated on 8th

of January‟10 at Rae Barely later it was done in Amethi in Sultanpur

District.. The timings of the program was between 11 AM to 2PM. The training centre was in the same premises of Bank of Baroda

RUDSETI office. Pamphlets was made and supplied to all bank branches of Rae Barely. One retired bank employee was employed

and hence the program was being delivered as per RBI guidelines

“UBI FLCC”: Based on RBI guidelines, It had initiated on 15th

of January‟10 at Varanasi. The timings are: 10 AM – 2PM and 4PM to

7 PM. They hired one retired employee, assistant and attender. They started block level meetings, planning to initiate village level

meeting. On 8th

of March‟10 (International Women‟s Day) onwards, initiated meeting with women SHGs. Draft Pamphlet has

prepared but yet to be final shape. FLCC also has phone and e-mail services; a toll free number: 18001805020 and e-mail:

[email protected].

In Uttar Pradesh, there is mix of financial literacy programs being implemented. The first is UNDP supported financial literacy

program being implemented by ISMW. This is in similar lines to all the UNDP programs in other states. Moreover, UNDP is also

supporting NABARD in conducting financial literacy program. Except for insurance, all the aspects are being covered in the program.

mailto:[email protected]


Page 28 of 108

The other structured program is by DISHA supported by ICICI and is using technology such as SMS, email and phone call and walk-

in inputs as per the query.

FLCCs of Union Bank of India and Bank of Baroda is also being implemented and these are mostly concentrating on banking

products and services. The Union Bank of India is also having a toll free number which provides inputs to customer‟s queries.

Thus in UP, a more varied approach to financial literacy has been observed, including use of technology. The coverage of districts is

more, primarily because of the initiative of NABARD. FLCCs also seemed to be also playing a critical role in financial literacy in the

state.

It is very evident that the financial literacy drive has been initiated in 2010 and has been successful on a pilot basis. The demand for

such services is far more than the current level of operations. Hence there also need to be clear strategy for an identified anchor

institution/s to scale up the existing financial literacy programs in the state. The task is very daunting, given the size of the state, high

percentage of poverty and lack of ground level institutional support.


Page 29 of 108

Madhya Pradesh – Secondary Data

Table 9: Madhya Pradesh – Secondary Data S.

No.

Name of the

programme

Name of

the

institution


1

SEWA-

Formal

Financial

Literacy for Poor Women

(Sponsored by:

Citi foundation and ISMW

under its Citi

Center for Financial

Literacy

(CCFL) and

National

Alliance for

Financial Literacy

(NAFil)

programme)

SEWA,

Indore

-To generate awareness and

spread knowledge on financial

literacy amongst poor women.

-To enhance the saving habit and increase saving in

cooperative

4 hours per

day

Budgeting &

planning: Financial planning for

poor households, cash flow,

income and

expenditure, source of income and heads of

expenses

Saving:

Information about

Bank documents,

Bachat ke Prakar,

importance of saving

Credit:

Process of taking loan, Which type of

document need, How

to repay loan, How to utilize loan amount

etc

Insurance: housing Insurance,

health Insurance,

accident purpose,

livestock insurance,

Enterprise insurance,

Self Insurance, Child Insurance

Investment:

Fixed deposit, Gold Purchasing, Mutual

Fund, House/land

purchasing Others:

Training on livelihood

activity

Street Plays, Group

Discussion, Individual

Counselling, Games,

Video films and Posters

Continuous

feed back

Very effective

for saving

mobilization

among poor women

1. Initiated

from May 2006


Page 30 of 108

S.

No.

Name of the

programme

Name of

the

institution


2

RBI-Formal

financial

Literacy -Platinum

Jubilee Year

initiative in RBI

RBI, Bhopal Financial Education to society 3 full days

in one

location

bankers talk about the

saving and credit

services with banks and its process to access.

They also open bank

account in the camp itself

pamphlets, story and

commix books like

Paisa Ka ped

Informal way - Inspite of block

level campaign,

it is better to conduct in

Panchayat

level.

3 Cent Sahyog Formal-Financial

Literacy Cum

Counselling Centre (FLCC)

at Ratlam

Central

Bank of India

-Advising individuals for

gaining access to structured financial system -Creating

awareness about better debt

management Counselling to meet repayment obligations

-Helping in drawing a

repayment plan by coordinating with the bank for

farmers in default

-Helping in rehabilitation of borrowers in distress

3 hours -

Daily Credit:

Process of taking loan, Which type of

document need, How to

repay loan, How to utilize loan amount etc,

They want to

understand more about loan procedure And also

discussed, Helping in

rehabilitation of barrowers in distress,

Counselling to meet

repayment obligations

Group Meeting,

Focus group discussion with

Group, Individual

Counselling, Show video

Informal way - Planning to

improve the quality by

adding savings,

insurance etc

4

Financial Literacy for

poor (Technical

services by:

Access Development

Services;

Financially supported by:

ISMW)

VAMA Spreading Financial Literacy amongst the poor, especially

women by building their financial awareness,

knowledge and skill to enable

them to manage their financial and thereby making them

financially self-reliant and

provide them better and secured future

2 hours a day

(Programme conducted

for 6

months)

General: Gender Sensitization,

Family Visioning, Analysis of finances,

Fundamental of

Financial planning, Budgeting, Promote

Savings , Debt

management, Service availability and

opportunity analysis

Budgeting & Planning

Baseline cum bench

marking parameter,

Data analysis and report preparation, Manual

development and

printing, Ongoing learning documentation,

Capacity building on

SHG management training, Gender and

Road shows, nukkad natak, FGD, Films,

Role plays, Group work

- 6000 participants were trained

from village / semi-urban and

urban areas. Yes.

future chances to turn in to FI.

Programme conducted for 6

months at Gwalior


Page 31 of 108

S.

No.

Name of the

programme

Name of

the

institution


leadership development,

Establishment of

financial literacy centres, Honorarium to

extension workers,

Inter personal exposure Creative development

communication for

financial literacy, Fixed and recurring expenses,

Contingency expenses

Saving

Micro savings as per

organization curriculum

Credit

Micro Credits as per


Insurance

Micro Insurance as per


5 AES-Formal Financial

Literacy for

Poor Women (Technical

services by:

Access Development

Services;

Financially supported by:

ISMW)

Anupama Education

Society

Spreading Financial Literacy amongst the poor, especially

women by building their

financial awareness, knowledge and skill to enable

them to manage their financial

and thereby making them financially self-reliant and

provide them better and

secured future

2 hours a day

(Programme

conducted for 6

months)

General: Gender Sensitization,

Family Visioning,

Analysis of finances, Fundamental of

Financial planning,

Budgeting, Promote Savings , Debt

management, Service

availability and opportunity analysis


Baseline cum bench marking parameter,

Data analysis and report

preparation, Manual development and

printing, Ongoing

learning documentation, Capacity building on

SHG management

training, Gender and leadership development,

Road shows, nukkad natak, FGD, Films,

Role plays, Group

work

Survey had done for

knowing the

effectiveness

6000 participants were trained

from villages and

urban areas. Survey showed

that 20 to 30%

increase in house holding budget,

saving

mobilization,

-


Page 32 of 108

S.

No.

Name of the

programme

Name of

the

institution


Establishment of

financial literacy

centres, Honorarium to extension workers,

Inter personal exposure

Creative development communication for

financial literacy, Fixed

and recurring expenses, Contingency expenses

Saving

Micro savings as per organization curriculum

Credit

Micro Credits as per organization curriculum

Insurance

Micro Insurance as per organization curriculum

6 SHG Capacity

Building

Parath

Samithi

Holistic development of the

under privileged and backward sections of the society through

building capacity and

providing financial assistance.

One hour a

day

Ongoing learning

documentation on SHG, Capacity building on

SHG management

training, Gender and leadership development,

Administrative

Expenses (stationery expenses), Fixed and

recurring expenses,

Contingency expenses

Role Plays, Lecture Continuous

process

- -

7 Formal-PNB

Farmers‟

Training Centres in

Vidisa

PNB

Farmers‟

Welfare Trust

PNB Farmers' Welfare Trust is

established with the basic

objective of welfare of farmers without any profit motive for

the Bank

2 to 3 hours

in a day

Process of taking loan,

Which type of

document need, How to repay loan, How to

utilize loan amount etc,

How to utilize Kisan Credit Card, They want

to understand more

about loan procedure

Group Meeting,

Focus Group

Discussion, Individual Counselling, Videos

Informal way The level of

farmers

awareness was increased

Campaign (400

to 500 attends

for one campaign)


Page 33 of 108

The structured programs conducted in MP were done by SEWA, Anupama Education Society and some structured programs were

offered by the Reserve Bank of India. The latter was implemented by banks which only dealt with their products and services and

organized camps for opening of bank accounts. This is attempt of combining financial literacy with financial inclusion.

While the informal ones include SHG capacity building which is more focused around operations of SHGs. The overall understanding

of financial institutions and their products therefore is not covered under such capacity building exercise.

The attempt of PNB Farmers trust was only limited to process of obtaining credit in banks and its management. Hence, the

understanding was again limited to one aspect of financial services rather than the whole gamut. So is the case of Central Bank of

India which till date has been involved in giving inputs in credit but are planning to include other services such as savings and

insurance.

Thus in Madhya Pradesh, there has been two way approach to financial literacy with a few structured programs being offered by three

different agencies and focused approach of the banks for credit only. But RBI is also working with banks for financial inclusion with

some element of training of the customers. It seems in MP, it is a mix of both formal and informal approach is being used.

Even in MP, the formal financial literacy drive has been initiated by ISMW but the outreach is quite limited. Some of the banks also

are engaged in financial literacy to the extent of marketing their product and services. Given the tribal dominated districts in Madhya

Pradesh, more efforts to make customized training programs and it rolling out is necessary for enhanced financial literacy and

inclusion. As a strategy, there could be more than one institution anchoring such program in regions of the state as MP is quite a large

state. NABARD has to lead the financial literacy drive through both technical inputs and possible funding of programs.


Page 34 of 108

Chhattisgarh – Secondary Data Analysis

Table 10: Chhattisgarh – Secondary Data Analysis S.

No.

Name of the

programme

Name of the

institution


1 Financial

Literacy

Programme

Evangelical

Social

Action

Forum (ESAF)

1. To equip staffs to spread

Financial Literacy

2. To impart basic financial

knowledge to SHG members

1 Day

(3 Hrs)

1. Importance of

Savings, 2.

Calculation of Interest,

3. Importance of receipts,

4. Book Keeping

especially passbook reading and A/c register

maintenance

Lecture, Inter action,

Role Play,

Continuous

process.

Planning to do

the programme, once in every

quarter

Not applicable

for this moment

It is in initial

stage.

Currently, they

just have finished ToT

for their staff of

10 branch members. It is

in the process

of reaching to their Federation

members

2

Dena Bank

formal- Credit Counselling

Centres - Dena

Mitra

Dena Bank

(lead bank in Mahasamund

and

Dhamtari district of

Chhattisgarh

1. To educate people and

prevent them from entering the debt trap.

2. To create public awareness

about financial planning 3. To help individuals achieve

long term goals through investment, asset allocation,

risk management and

retirement planning. 4. To provide guidance for

opening Bank accounts and

induce people to save.

5. To offer a viable task-

specific, advisory ad hoc

intermediary service between the borrower and the bank

concerned.

6. To provide the insight to the people to solve current

financial problems.

7. To create awareness about the costs of misusing a credit,

as it improves financial

management and develops

realistic spending plans.

8. To advice the distressed

10AM –

4PM

Savings:

About Dena 15 products

Credit:

About Dena 9 products Insurance:

LIC, insurance

Lecture and

interaction

- - It was started in

May 2007 and ended in 2009


Page 35 of 108

S.

No.

Name of the

programme

Name of the

institution


people to gain access to the

structured financial system,

including banking. 9. To help the borrowers to

decide upon the quantum of

loans they can avail, based on their income profile and stream

of cash flows.

10. To provide counselling to the borrowers which typically

occurs after a crisis event,

when the borrower has already missed one or several

payments, so as to prevent

default and foreclosures. to provide technical guidance

about rural lending

11. To educate rural / urban folk about the benefits of

timely repayment of banks

loan 12. To guide the people about

the benefits of having the account with the bank i.e.

financial inclusion

13. To have coordination with various Govt. Departments for

solving the problems related to

them.

14. To facilitate organization

of the training programmes for

the rural people in coordination with various

agencies for skill up-gradation

and use of modern technologies in agriculture and

small & micro service

enterprises. 15. to guide rural

entrepreneurs to establish links

with market outlets for better

sales realization of their

products.


Page 36 of 108

S.

No.

Name of the

programme

Name of the

institution


16. to educate the masses on

the proper usage & pitfall of

debit & credit cards, so as to avoid the wasteful spending

3 Informal-SHG

and microfinance

programme by

–Sakhi credit cooperative

Sakhi Credit

Cooperative Society

Maryadit,

1. -To employ rural, poor, tribal

and less- literate/ illiterate women in income

generating activities.

To provide small scale loans on easy instalment and

accessible interest rate.

To deposit saving of women‟s. To develop entrepreneurship

and skill among rural

women‟s. To provide marketing support

to women entrepreneurs.

Develop practices of saving among rural and poor

women‟s.

Develop sprit of “Co-operation” among them.

Development of cooperative

federation. 9. Linkage with cooperative.

2 days – 4

hours per day

Saving:

About bank and saving schemes, documents

required for bank

account Credit:

Process of loan taking,

documents required for bank account

Insurance

Health Insurance accident insurance

livestock insurance

Enterprise insurance

Investment:

Fixed deposit,

Recurring deposit, Monthly deposit.

House/land/, Livestock,

purchasing

Role play, NABARD

film, Focus Group Discussion,

Interaction, Lecture,

Games

Continuous

process

Formed 800

SHGs

-

4 Informal-SHG

and microfinance

programme by

–SROUT

SROUT,

Korba

-To enhance the saving habit

and increase saving in SHG‟s level.

-To employ rural, poor, tribal

and less- literate/ illiterate women in income

generating activities.

-To provide small scale loans on easy instalment and

accessible interest rate.

- To develop entrepreneurship and skill among rural

women‟s.

- To provide marketing support to women entrepreneurs.

- Develop practices of saving

among rural and poor women‟s.

4 hours per

day Saving:

About bank and saving schemes,

Documents required for

bank account

Credit:

Process of loan taking,

documents required for loans, how to utilize

amount and how to

repay the amount

Role play, NABARD

film, Focus Group Discussion,

Interaction, Lecture,

Games

Continuous

process

Formed 210

SHGs

-


Page 37 of 108

S.

No.

Name of the

programme

Name of the

institution


-To provide credit facility for

activates.

- Linkages with Bank.

There is no formal program which is being currently being run in Chhattisgarh. The process has already started through the ToT of the

people who would be undertaking the training. The literacy would be rolled out in the near future.

The longest program of financial literacy in the state is FLCC conducted by Dena Bank through the Dena Mitra Centres. Mostly

conducted for a day, it covered aspects of savings, credit and insurance. The lecture and interactive methods were generally used,

which again is one of the least preferred options given the participants (primary data).

The SHG Capacity building program run by two different institutions aimed at savings and credit among the SHGs However, one of

the programs also focused on investment and insurance. Again, the programs conducted for the SHGs are more on the process of

formation and building awareness of various financial products.

The structured literacy program has just been started in the state of Chhattisgarh and is in the process of being rolled out. Most of the

informal programs of financial literacy were done through FLCC and SHG Capacity Building process, which is often quite

informative and useful. But in the former, the awareness is mostly through camp and workshop mode, which is mostly focused on

disseminating information about bank product and services.

There is a need to build the capacity of NGOs about full fledged financial literacy program customized to state nuances and diversity.

The training of trainers material has already been developed by ISMW but actual program is yet to begin. Indeed, there is no single

agency in the state driving the programs of financial literacy. NABARD can take the lead role in the same and take the experiences of

NABARD in UP and MP. Otherwise, it is limited to only SHGs which is grossly inadequate, given low intensity of SHG program in

the state.


Page 38 of 108

Orissa – Secondary Data

Table 11: Orissa – Secondary Data S.

No.

Name of the

programme

Name of the

institution


1

FI through FL

(Sponsored by

NABARD)

Harijan

Adivasi

Mangal Samiti

To strengthen the

economic condition

of the women

through SHG with the support of

income generation

activities.

2 hours a day Financial Independence (start thinking about tomorrow,

Start saving, Increase income

(borrow for productive purposes to generate income), Reduce

avoidable Expenses, Increase

Savings, Save Regularly, Maintain financial discipline,

Reduce past debts, Start

investments, Build assets Attain Financial Independence)

Where to save?

(Structure of Financial Sector in

India, Operational aspects of

banking, Different small savings

deposit accounts, How to open a bank account, Different aspect of

a bank account, No-frill

accounts)

Loan & Advances

(How to get bank loan

(Document required & other formalities), Priority sector

lending-banks obligations,

different related Govt. schemes

)

Stories

Games

Chart

Immediate

feedback taken

from

participants

Not measured 1. Training

had conducted

in the month

of Jan.‟10 to Feb.‟10

2. Planning to

conduct a two hours

workshop

quarterly

2

FI through FL

(Sponsored by NABARD)

ORIDA To enable to

understand the need of saving and

Source of credit

4 hours a day.

Programme had

conducted for

two days

Savings

(How to Save, Concepts in „Savings‟)

Where to save?

(Different small savings deposit accounts , How to open a bank

account , Different aspect of a

bank account)

Borrowings

(Pre and Post Borrowing

Factors, Reducing vs. Flat Rate

of Interest, Borrowing for

Productive purpose)

Charts

Stories Games

Posters

Immediate

feedback taken from

participants

Not measured 1. Training

had conducted in the month

of Jan.‟10 to

feb.‟10 2. Planning to

conduct one

day in each month


Page 39 of 108

S.

No.

Name of the

programme

Name of the

institution


3

FI through FL

(Sponsored by

NABARD)

ADARSA To increase the

economic status of

the beneficiaries

4 hours a day.

Programme

had conducted for

three days

Financial Planning (Make a financial plan, Start

saving, Save Regularly)


(Preparing a Financial Plan,

Preparing a Budget)

Saving

(How to Save, Concepts in

„Savings‟, Purpose wise Saving)

Where to save?

(Different small savings deposit

accounts, How to open a bank account, Different aspect of a

bank account)

Borrowings

(When-How and Why we

borrow; from Whom, Options

available for borrowings)

Loan

(How to get bank loan -

Document required & other formalities),

Charts

Stories

Games Posters

Immediate

feed back

The loan

customers had

increased

1. Training

had conducted

in the month of Jan.‟10 to

feb.‟10

2. It was suggested that

programme

should be in presence of

bank officers

4

SHG CB Netaji Jubak

Sangha (NYS)

To increase the

economic status of the beneficiaries

6 hours a day. Saving

(How to Save, Concepts in „Savings‟, Purpose wise Saving)

Where to save?

(Different small savings deposit accounts, How to open a bank

account, Different aspect of a

bank account)

Borrowings

(Borrowing for Productive

purpose, Options available for borrowings)

Charts

Stories Street- Plays

Games

Posters

Immediate

feedback taken from

participants

Impact can see

directly in literate people.

In directly can

see from illiterate

1. Training

planned according to

SHG members

leisure 2. Programme

should repeat

for illiterates.

5 FI through FI (Sponsored by

NABARD and

collaborated with ISMW)

Centre for Youth and

Social

Development

1. Understand the concept and role of

financial literacy

for financial inclusion

2. Bring attitudinal

changes to deal with money and personal

8 hours a day. Continuous

for two days

Financial Independence (Start thinking about tomorrow,

Make a financial plan, Start

saving, Increase income (borrow for productive purposes to

generate income), Reduce

avoidable Expenses, Increase Savings, Save Regularly,

Interactive session, presentations, flip

chart, games, group

discussions, case work, storytelling,

Brain storming,

question answer, film show & ,Role

Immediate feedback taken

from

participants

Through repeated

programmes,

significant changes had

occurred

1. Training is happening in a

continuous

process


Page 40 of 108

S.

No.

Name of the

programme

Name of the

institution


finance.

3.Acquire the

knowledge about various financial

services and

products 4.Familiarize about

the role of Banking

correspondent ( BC) and Banking

facilitators ( BF)

5. Understand the principles of adult

learning and

acquiring the skill of participatory

training

methodologies.

Maintain financial discipline,

Reduce past debts, Start

investments Build assets Attain Financial

Independence

Adult Learning Principles

(Respect, Affirmation

(reinforcement), Relevance,

Dialogue, Engagement (team work), Immediacy, 20/40/80

Rule, Thinking, Feeling and

Acting, Safety, Accountability


(Uses of budget, Preparing a

Financial Plan, Preparing a Budget, Active Vs. Passive

Income)

Smart Savings

(How to Save-Concepts in

„Savings‟. Saver V/s Spender,

Purpose wise Saving, Deciding your goals, Relationship between

income/expense and savings, Power of Compounding)

Investments

(Attributes of investment -safety, liquidity, returns,

Mitigating Risk (insurance)

Where to save?

(Structure of Financial Sector in

India, Operational aspects of

banking, Different small savings deposit accounts, How to open a

bank account, Different aspect of

a bank account, No-frill accounts)

Borrowings

(When-How and Why we borrow; from Whom, Pre and

Post Borrowing Factors,

Reducing vs. Flat Rate of

Interest. Borrowing for

Productive purpose, Options

plays


Page 41 of 108

S.

No.

Name of the

programme

Name of the

institution


available for borrowings,

Attributes of Borrowing, Four

„R‟s of Borrowing, R- Right source, R- Rate of interest, R-

Risk factor, R- Repayment

Schedule and terms)

Loan & Advances

(How to get bank loan -

Document required & other formalities, Priority sector

lending-banks obligations,

Different related Govt. schemes - KCC. GCC, Remittance /

money transfer)

Insurance

(Three ways of tackling risk,

Products, Pension)

What is FL, Why FL, Fundamentals of FL, Waste full

expenditure, Fungible of money

and BC model

In Orissa, two types of programs have been observed; one which is NABARD sponsored program and other conducted by the NGO

and SHG capacity building programs. While there are differences in the program offered by different organizations, these were mostly

focused on savings and credit. In one of the programs, insurance was also covered.

In the SHG capacity building program, similar to other states, the focus was mostly on savings and borrowings.

It is evident that in the NABARD sponsored program, there is an attempt to do repeat program while in one of the organizations, it is

attempting to give inputs on a continuous basis.

Thus in Orissa, some semi-structured programs is being offered which is being supported by NABARD as well as SHG capacity

building programs of individual organizations. ISMW has been involved in design of the program and also conducting ToT and is not

directly involved in training.


Page 42 of 108

Since the SHG Bank linkage program is well entrenched and is working in the state of Orissa, but the process can be further

strengthened through provision of structured inputs on financial literacy. This will enable to give greater outreach and can help in

increase in financial inclusion. Since NABARD is actively involved in financial literacy in the state, the current program of ISMW can

be further customized to roll out the financial literacy program with help of NABARD. Thus, it will act a lead agency for financial

literacy in the state.


Page 43 of 108

Bihar – Secondary Data

Table 12: Bihar – Secondary Data S.

No.

Name of

the

program

me

Name of

the

institution


1

Financial

Inclusion through

Financial

Literacy (Sponsore

d by:

UNDP; Trainer:

ISMW)

NABARD To connect the excluded with

the formal banking system in order to help them obtain an

understanding of the financial

services available and equipping them with the confidence to

make informed financial

decisions.

One day Savings (Opening of

bank account) Credit

Insurance

Lecture Interactive

Skits Quiz

Film

Informal way - State Level

Workshop

2 Financial

Literacy

Reserve

Bank of

India

To connect the excluded with

the formal banking system in order to help them obtain an

understanding of the financial

services available and equipping them with the confidence to

make informed financial decisions.

- Savings (Opening of

account) Credit

Lecture

Interactive Films

Books

Informal way Financial Inclusion:

100%: 3 villages (Jehanabad,Banka,Samastipur ); Above 80%: 2 Villages ( Nalanda, Gaya); 60% - 79%: 1 Village ( Gaya) Less than 50%: 1 Village: E.Champaran)

Credit Linkage:

Above 80% : 3 villages (Jehanabad, Nalanda,Banka); 60-79%:2 villages (Samstipur,Bhojpur) Less than 60%:2 villages ( Gaya,

E.Champaran)

http://www.rbi.org.

in/financialeducati

on/BasicBanking.a

spx

3 SHG CB Women

Development

Corporation

Promoting Socio-economic

development and empowerment of women

2 days SHG management

Government Schemes like

mukhyamantri naari Shakti yozna, Deep

pariyoznaa and so on

Lecture

Role Play Interactive

Games Flip Charts

Continuous - -

http://www.rbi.org.in/financialeducation/BasicBanking.aspx





Page 44 of 108

S.

No.

Name of

the

program

me

Name of

the

institution


4 SHG CB Nidan Micro

Finance

Foundation

(NMFF)

To provide a range of quality and affordable financial services

in a sustainable manner to the

women of poor and low income families through Self Help

Groups, for their socio-economic

empowerment.

One day SHG Management Government

Schemes like

NREGA

Role Play Lecture

Interactive

Continuous - -

5 SHG CB Bihar Rural

Livelihood

Promotion Society

-Improving rural livelihoods and

enhancing social and economic

empowerment of the rural poor. -Developing organizations of the

rural poor and producers to

enable them to access and better negotiate services, credit and

assets from public and private

sector agencies and financial institutions.

-Investing in capacity building

of public and private service providers.

-Playing a catalytic role in

promoting development of microfinance and agribusiness

sectors.

2 – 3 days i) Group

Management

(Importance of regular meetings

Leadership issue

Conflict mitigation Cohesiveness in

group and its

importance, Need and importance of

making norms)

ii) Financial Management

(Importance of group

savings; Making of group lending norms;

Importance of

bookkeeping; Introduction to

different forms of

fund available Community

investment fund

Bank linkage and other FIs; Importance

of regular and timely

repayment schedule Rotation of fund

available)

iii) Micro credit plan (Why Micro Credit

Plan

Importance of MCP; SHG profile; SHG

Stories

Lecture

Film Counselling

Group

exercise Role play

Games

Exposure visit

Continuous - -


Page 45 of 108

S.

No.

Name of

the

program

me

Name of

the

institution


member wise profile; SHG member income

& exp.

Micro Credit Plan; MCP 1st phase

loanee members

(prioritization plan); MCP 2nd phase

rotation method)

iv) Village Organization (Need

of VO formation,

Objectives of VO, VO constitution

process, VO role &

responsibilities, VO and beyond)

v) Book keeping

(Bookkeeping & bookkeeper role,

Need and importance of bookkeeping &

bookkeeper role)

In Bihar, the structured programs have not been done. ISMW had conducted ToT for NGOs officials who were implementing UNDP

financial literacy programs. RBI has taken a major initiative on financial inclusion in Bihar in which some element of literacy program

was also conducted.

The major SHG capacity building programs in the state is observed in WDC promoted groups, SHGs promoted by Bihar Rural

Livelihood promotion Society and Nidan Micro-Finance Foundation. The focus was mainly on the capacity building of SHGs in

savings and credit along with group processes.

It is evident that financial literacy drive has been limited to SHG capacity building and few structured programs has been conducted or

are in place as a drive towards total financial inclusion district. But there has been no agency anchoring the financial literacy drive in

state. Women Development Corporation is one agency which has a state wide presence and it can be a lead agency in the state.

Collaboration of WDC and NABARD on the financial literacy front could be an ideal strategy for rolling out financial literacy

program in the state in a structured manner.


Page 46 of 108

Jharkhand – Secondary Data

Table 13: Jharkhand – Secondary Data S.

No.

Name of the

programme

Name of

the

institution


1

Financial Literacy

programme

RBI Financial Inclusion through FL One day – 2

to 3 hours

RBI Awareness,

Currency Management, No Frills account,

Deposit Insurance

Scheme, Savings Account, FD & Current

account, Loan process

and schemes

Dfdfdf Lecture, 3 story books,

interactive

- 8000 Mostly

conducted through banks

but the data on

quality of the program is not

available.

2

FL Credit Counselling

Centre

Abhay Credit

Counselling

Centre, Bank of

India at

Gumla district

1. Advising on gaining access to structured financial system

including banking

2.Creating awareness among the public about financial

management

3.Counseling people who are struggling to meet the

repayment obligations and helping debt resolution

4.Helping in rehabilitation of

borrowers in Friendly and timely guidance

11 am to 4 pm

(Tuesday,

Thursday and

Saturday)

All types of clarities on Financial issues

Interactive Continuous support

8108 On Wednesdays

and Fridays,

the counsellor accompanies

the sponsoring

bank‟s LDM on his visits to

nearby villages for meeting

with SHGs,

Farmer Clubs, etc in order to

spread

awareness on

credit

counselling

services as well as the „Abhay‟

centre‟.

3

RUDSETI

(Skill Development)

PNB 1. To motivate and develop

confidence in unemployed youth.

2. To identify, orient, train, counsel and assist young

people to take up some self-

employment ventures by providing all possible

Short

duration course on

skill

development

Skill development on

embroidery, doll making, etc

Practical, exposure,

lecture

Facilitate for

bank loan

4122 Facilitate to

improve their income


Page 47 of 108

S.

No.

Name of the

programme

Name of

the

institution


assistance to them.

3. To promote rural entrepreneurship

4. To enhance the effectiveness of poverty

alleviation and self

employment schemes of the Government and the Bank.

5. To promote counselling and project consultancy services

6. To train village level

workers to work in rural

development.

7. To take up research and

development in rural

entrepreneurship and rural development.

4

SHG CB Sahiyogi

Mahila Kendra

(Saraikela)

To empower women and

create an environment for equal opportunity and provide

income generating activities

4 hours for 3

days

Saving:

Importance of savings, How to save, where to

save and how much to

save, Benefits of savings

Credit:

What are the different sources to get credit

from?, What are the

financial products available?, About its

interest rate and

instalment

Role plays, Lecture,

Games

Continuous

process

3750 Facilitate for

empowerment

5 SHG CB Krishi Gram

Vikas Kendra

To contribute in achieving the

millennium development goals in areas of our operation

One day SHG management

Book keeping


Games

Continuous

process

4000


Page 48 of 108

S.

No.

Name of the

programme

Name of

the

institution


6 SHG CB Nav Bharat

Jagruthi

Kendra

To establish a progressive,

peaceful, and a just society

based on the values of equality, fraternity and mutual

help.

One day SHG management

Book keeping


Games

Continuous

process

30000

There is no structured formal program which has been found to done in the state of Jharkhand. Most of the financial literacy programs

have been conducted in semi-structured manner.

The RBI has been supporting financial inclusion in the state through financial literacy programs conducted through banks. The content

and training material used for such programs have well designed by RBI and is being used by the implementing banks. Again the

duration is quite small for in-depth and adequate coverage of various topics mentioned.

While Rudiseti mandate was different, it also facilitated bank linkage for prospective entrepreneurs and to that extent it catalyzed

financial inclusion process.

There are also several SHG Capacity building programs being run by various NGOs, which has had an impact on their knowledge

about savings and credit as well as it use. The duration of the training programs to SHGs also varied across NGOs but the pedagogy is

almost similar.

In Jharkhand, it seems that the financial literacy drive has remained in the informal sphere without any structured approach by any

organization.

NABARD could be anchor agency in the state for rolling out the financial literacy in the state. However, this has to be anchored

within NABARD so that a structured and customized program can be developed to be rolled out in the state. It is important that

lessons from literacy program in other states, especially those developed for Uttar Pradesh could be useful.


UN Focus states

Page 49 of 108

4. Data Collation and Analysis

From the individual state analysis, the data was collated to do an overall analysis of the

financial literacy programs in the seven states. The broad heads for analysis were

budgeting, savings, loans and insurance on the financial services which has been covered

by the literacy programs. This is followed by the analysis on overall perception of the

program and gender dimensions.

As enumerated in table 14, the total sample analyzed was 5637 of which 2080

respondents belonged to formal programs. By formal programs, it is meant that the

participants had undergone structured training programs in the respective states. The

highest sample was for Uttar Pradesh while the lowest sample was from the state of

Chhattisgarh.

Table 14: Total Sample Study

Type of Training Program

Bihar

Jharkhand

Madhya

Pradesh

Orissa

Rajasthan

Uttar Prades

h

Chhattisgarh

Total

Informal 699 671 341 216 460 416 270 3073

Formal 138 517 491 310 624 2080

Did Not Attend 65 204 47 119 19 30 484

Grand Total 902 875 905 707 889 1059 300 5637

(F refers to Formal and IF refers to Informal)

Overall profile of the respondents is provided in Table 15. The sample comprised of BC

(40%), SC (24%), ST (20%) and Minorities (12%). The sample respondents also

comprised PWD (6%) and PWHA (1%). Again, it indicates that the target for the

financial literacy program is the poor and in the surveyed state, the focus is relatively on

those castes which are predominantly poor. About 72 percent of the sample had an annual

income equal to or below Rs. 40,000 per annum. This indicates that the target clients for

financial literacy programs, both formal and informal are the poor in most of the states,

who in turn are financially excluded. The income level is also corroborated by the

enrolment in NREGA which is above 60 for three states.

The female respondents accounted for 77% of the total respondents which again indicates

that the focus of the literacy program is primarily women in these states, who are

generally excluded from financial decision making and judgments in the family. The

figure for women is high also as the trainees were chosen from the SHGs.

Interestingly, MFI customers are low in all the states and high percentage of them had

bank accounts.


UN Focus states

Page 50 of 108

PROFILE INFORMATION

Table 15: Profile of Sample

Bihar Jharkhand

Madhya

Pradesh

Orissa Rajasthan

Uttar Prades

h

Chhattisgarh

Grand Total

Total Respondents

902 875 905 707 889 1059 300 5637

Caste Categorization

BC 55% 25% 41% 36% 40% 38% 59% 40%

SC 32% 14% 29% 24% 19% 31% 10% 24%

ST 8% 57% 18% 14% 22% 2% 24% 20%

General 5% 4% 11% 27% 20% 30% 7% 16%

Gender Categorization

Female 82% 69% 97% 65% 79% 67% 78% 77%

Male 18% 31% 3% 35% 21% 33% 22% 23%

Age

<60 Yrs 95% 98% 98% 95% 97% 94% 96% 96%

>=60 yrs 5% 2% 2% 5% 3% 6% 4% 4%

Religion

Minority 5% 5% 7% 11% 37% 9% 2% 12%

Others 95% 95% 93% 89% 63% 91% 98% 88%

Income Categorization

> 40,000 P.A 9% 13% 35% 23% 46% 36% 17% 27%

<= 40,000 p.a 90% 85% 65% 75% 53% 64% 83% 72%

No Response 1% 1% 0% 2% 0% 1% 1% 1%

Health Categorization

PWD 3% 10% 8% 8% 5% 4% 4% 6%

PWHA 0% 3% 1% 0% 0% 0% 1% 1%

Others 97% 87% 91% 91% 95% 95% 95% 93%

Education, Primary Income source and Usage of services of sample respondents is given

in table 16. Most of .the respondents were dependent on cultivation (40%) followed by

wage labour (38%) as their primary source of income. The sample consisted of 46%

illiterates while another 45% were educated up to high school. Among the states Bihar

had the highest number of illiterates in the sample. Large number of respondents were

members of SHGs (61%), from where the participants were chosen for training specially

by the NGO‟s. Another interesting feature of the overall sample is that, 56% of them had

bank accounts, which is much higher than the all India average of 39%. Among the

sample respondents 47% were enrolled under NGREGS while only 33% were covered

under any insurance policy, which is also a high figure. Both these results show that the


UN Focus states

Page 51 of 108

financial inclusion process was also undertaken in these states, the upshot of which is

such high figures for bank accounts and insurance. This trend is also reflected in the

analysis later.

Table 16: Profile of Sample

BIHAR JHARKHAND

MADHYA

PRADESH

ORISSA

RAJASTHAN

UTTAR PRADE

SH

CHHATTISGA

RH

Grand Total

Total Respondents

902 875 905 707 889 1059 300 5637

Education

P.G and Above 1% 1% 2% 3% 0% 1% 1% 1%

Graduate 2% 2% 2% 3% 2% 3% 2% 2%

Higher Secondary

4% 6% 4% 4% 3% 8% 3% 5%

High School 21% 26% 24% 34% 22% 27% 20% 25%

Primary 15% 24% 22% 27% 19% 12% 22% 20%

Illiterate 57% 40% 45% 26% 52% 49% 51% 46%

Technical Education

1% 1% 1% 2% 0% 0% 1% 1%

Primary Income Source

Cultivation 25% 76% 31% 43% 36% 34% 37% 40%

Wage Labour 49% 20% 41% 35% 41% 36% 53% 38%

Non Farm Activities

17% 3% 20% 11% 11% 23% 6% 14%

Agri Allied Activity

1% 1% 1% 4% 3% 1% 0% 2%

Salaried Job 4% 0% 7% 8% 9% 6% 3% 6%

Remittance 4% 0% 0% 0% 0% 1% 0% 1%

Usage financial Services

NREGS Enrolment

33% 68% 48% 33% 79% 19% 70% 47%

PACS Membership

12% 7% 16% 25% 17% 6% 8% 13%

SHG Membership

71% 64% 80% 57% 52% 39% 76% 61%

MFI Services 16% 5% 42% 27% 21% 28% 25% 23%

Bank Account 47% 43% 63% 48% 58% 73% 61% 56%

Insurance Policy 23% 23% 41% 41% 33% 44% 19% 33%


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BUDGETING

Table 17: CONTENT COVERED BY FLP ON BUDGETING

BIHAR JHARKHAND

MADHYA PRADES

H

ORISSA RAJASTHAN

UTTAR PRADES

H

CHHATTIS

GARH

TOTAL

Topic Covered IF F IF F IF F IF F IF F IF F IF F IF F

HH Budgeting and reducing avoidable expenses

44%

28%

31%

- 63%

60%

38%

55%

46%

67%

38%

63%

21%

- 40%

59%

Planning for emergency

66%

49%

32%

- 60%

61%

40%

49%

67%

66%

39%

74%

37%

- 50%

62%

Total Respondents

699

138

671

0 341

517

216

491

460

310

416

624

270

3073

2080

Table 18: MANAGEMENT OF HH BUDGETING AFTER FLP

BIHAR JHARKHAND

MADHYA PRADES

H

ORISSA RAJASTHAN

UTTAR PRADES

H

CHHATTISGARH

ALL INDIA

Type of Program Attended

IF F IF F IF F IF F IF F IF F IF F IF F

After FLP, Managing expenses in a better way

81%

63%

58%

- 71%

74%

51%

47%

67%

50%

55%

82%

49%

- 64%

66%

Total Respondent

699

138

671

0 341

517

216

491

460

310

416

624

270

0 3073

2080

The above two tables (17 and 18) deal with coverage of budgeting related issues in

Financial Literacy training programs and their effectiveness. As far as the content

covered on budgeting is concerned, a clear trend is observed in the states of U.P, Orissa,

Madhya Pradesh and Rajasthan where the ISMW Formal Financial Training program was

conducted. On an average, around 60% of the respondents who had attended the ISMW

program said that the program had imparted training on budgeting practices along with in

depth knowledge on cutting avoidable expenses and emergency planning. This response

when compared with that of an informal program reveals that the informal programs only

touched the topic of budgeting in their training sessions, with not much focus given on

imparting knowledge about cutting avoidable expenses, emergency planning etc.

Though informal programs do not talk much about efficient budgeting practices but when

it comes to a positive change in better management of expenses post FLP, informal

programs are almost at par with formal programs, in fact even higher in case of Rajasthan

and Bihar. But in case of Uttar Pradesh, formal FLP had higher impact on the

respondents. Both are almost equally effective despite of varied levels of focus on the

topic, the reason being, even though direct knowledge on budgeting is not given much in

informal programs but the practical exposure and working knowledge that people gain

out of their involvement in informal groups like SHG‟s etc. works well enough to

enhance their skills on handling their income and expenditure.


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Page 53 of 108

Another interesting observation is brought into light when we compare the effectiveness

of the same ISMW program in various states- U.P. and M.P versus Orissa and Rajasthan;

in each of these states the basic module delivered to the respondents on budgeting was

same. But the effectiveness in terms of a better management of expenses post FLP is

much higher in U.P. and M.P. as compared to Orissa and Rajasthan. A look into the

delivery mechanisms of the module explains this varied level of effectiveness. In M.P.,

the program was imparted by a sister organization of ISMW and the trainers were ISMW

professionals and in U.P., the trainers were selected from within the community and also,

the trainings were continuously monitored by ISMW officials (i.e. handholding support

was provided). While in Orissa and Rajasthan, the responsibility was entrusted to local

NGO‟s without any constant monitoring or re-evaluation. Hence, even when the content

of FL program is same, the effectiveness varies depending on the implementing

organization and the ease with which the trainers can communicate the content to the

respondents. A continuous monitoring system helps a great deal in ensuring quality

training and imbibing the inputs for further use.

On the whole, mostly people conceded that they have been able to budget their income

and expenditure in a better and more planned way after attending the financial literacy

programs. Formal programs especially the ISMW module mainly relied on videos, stories

and films to provoke the people for a better management of financial resources while in

case of informal programs, mostly people learn through practice and practical application

of the knowledge gained.

The lesson to be drawn from the above is that there is a need for giving formal inputs

through a structured program on budgeting, there should also be a process where trainees

are also sensitized in informal programs about the importance of budgeting in the daily

life. A combination of the training and resultant practice would be ideal both for

knowledge and impact on the household budgeting.


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Page 54 of 108

SAVINGS

Table 19: AWARENESS ON VARIOUS FINANCIAL INSTITUTIONS FOR SAVINGS

(OVERALL)

BIHAR Chhattisga

rh JHARKHA

ND MADHYA PRADESH ORISSA

RAJASTHAN

Uttar Pradesh Total

Saving Institutions

Yes but no idea of int rate

Yes also know the int rate















Bank 42% 26% 61% 11% 62% 19% 63% 20% 60% 23% 53% 23% 53% 22% 56% 22%

SHG 10% 76% 68% 23% 38% 55% 45% 41% 43% 42% 53% 27% 36% 29% 39% 43%

Post Office 26% 3% 35% 3% 28% 4% 38% 3% 56% 2% 42% 8% 32% 5% 36% 4%

Companies 17% 5% 16% 1% 20% 5% 10% 2% 27% 0% 24% 5% 25% 5% 20% 4%

PACS 16% 7% 17% 4% 9% 4% 9% 1% 15% 1% 27% 4% 15% 1% 15% 3%

Chit Fund 6% 0% 22% 3% 18% 2% 24% 1% 14% 2% 12% 0% 3% 0% 13% 1%

837 270 671 858 707 770 1040 5153

The conclusions from the Table 19 are as follows:

The general awareness on various saving institutions was highest for Banks and

SHG‟s and even between the two, detailed awareness on interest rates of savings

in SHG‟s was considerably higher than that of banks.

Although the awareness of Banks and SHGs as saving institutions was around

80% across all states but their detailed knowledge about interest rates on saving in

these institutions was poor. On an average, only 20% of total respondents knew

the interest rates on saving in banks while it is observed that the awareness level

on interest rate in SHG was better across all states.

Thus SHGs were more popular than banks as saving institutions. The detailed knowledge

of interest rates in other institutions like post office, companies, PACS and chit funds was

abysmally low.

Such low level of awareness on savings institutions and their products in people who

have undergone some or the other FL training programme, is a clear indicative of the

lacunae that the current FL programs exhibit (See table 19). Unless people have clear

knowledge of interest rates and benefits of saving in institutions like banks vis-a-vis other

institutions, the possibility of using these financial services and products to their

advantage will continue to remain a remote phenomenon.

This enhanced the working knowledge of respondents and hence, their awareness level in

UP in terms of knowledge of interest rates of savings in banks, procedural knowledge of

opening and operating saving accounts was higher than all other states. Even awareness

for all the different types of saving accounts (savings a/c, FD, RD, No Frill) was much

more in U.P. as compared to other states. This was a unique methodology in the sense

that as compared to the other states who were either imparting only theoretical

knowledge or facilitating mere opening of accounts, this combination of both was


UN Focus states

Page 55 of 108

observed only in U.P. and it showed flourishing results on the awareness levels of

respondents.

CONTENT COVERED ON SAVING IN FLP

Table 20: Contents on Savings Institutions Data Bihar Jharkha

nd Madhya Pradesh

Orissa Rajasthan

Uttar Pradesh

Chhattisgarh

All India


Bank Covered in FL 45%

73%

79%

0 73%

82%

77%

82%

74%

68%

81%

92%

70%

0 69%

82%


47%

48%

58%

0 64%

67%

66%

62%

48%

45%

48%

57%

65%

0 55%

59%


32%

41%

16%

0 22%

17%

19%

29%

29%

17%

21%

24%

12%

0 22%

24%

SHG/JLG/CIG

Covered in FL 77%

49%

83%

0 86%

80%

75%

86%

61%

61%

68%

76%

79%

0 76%

75%


4% 3% 36%

0 37%

59%

60%

39%

50%

50%

32%

41%

74%

0 35%

45%


94%

97%

54%

0 59%

36%

28%

55%

40%

21%

36%

34%

20%

0 55%

41%

Post Office

Covered in FL 8% 1% 31%

0 35%

43%

30%

47%

37%

42%

19%

38%

21%

0 25%

40%


34%

0% 39%

0 61%

70%

64%

77%

71%

39%

51%

62%

86%

0 56%

64%


22%

0% 8% 0 3% 6% 2% 1% 10%

4% 21%

9% 2% 0 9% 5%

Companies

Covered in FL 7% 1% 17%

0 10%

16%

13%

12%

24%

14%

14%

30%

7% 0 13%

18%


37%

0% 61%

0 18%

35%

37%

32%

57%

30%

42%

55%

60%

0 50%

44%


43%

0% 11%

0 9% 12%

0% 2% 19%

9% 26%

10%

5% 0 18%

9%

PACS Covered in FL 8% 1% 6% 0 9% 7% 9% 20%

31%

18%

7% 17%

9% 0 11%

14%


52%

100%

44%

0 41%

47%

35%

40%

57%

26%

41%

43%

83%

0 52%

39%


38%

0% 22%

0 16%

3% 0% 3% 6% 12%

10%

7% 0% 0 14%

6%

Chit Fund

Covered in FL 3% 0% 2% 0 16%

14%

15%

17%

35%

15%

1% 9% 2% 0 10%

12%


20%

#DIV/0

!

63%

0 51%

40%

79%

66%

25%

11%

25%

16%

33%

0 38%

38%


0% #DIV/0

!

0% 0 13%

7% 3% 5% 2% 4% 0% 0% 33%

0 5% 4%

Sample Size

699

138

671

0 341

517

216

491

460

310

416

624

270

0 3073

2080

Some of the salient inferences from above table 20 are as follows:

Across all states the formal programs were much more focused on imparting

knowledge on saving in Banks as compared to the informal ones. About 80% of

respondents who attended a formal program replied that they were taught about

saving in banks as compared to only 69% in case of informal ones.

Barring informal trainees in Bihar, the percentage of these respondents who

gained knowledge on bank was more than 70 % in case of both formal and

informal programs. Hence, a large number of respondents both in case of formal


UN Focus states

Page 56 of 108

and informal programs who said that savings in bank was covered in their

program have conceded that the program has enhanced their awareness on bank as

a saving institution.

As far as knowledge on SHG‟s is concerned, both formal and informal programs

imparted good knowledge on their practices, interest rates on savings, etc. The

informal programs of SHG capacity building and MFI counselling are certainly

more focused on savings in SHGs but even the respondents from formal programs

had good working knowledge of the same because majority of the respondents of

a formal program were members of SHGs. Interestingly, knowledge imparted on

SHG‟s in informal programs is higher while in formal emphasis was more on

banks as a savings institution.

Increase in awareness like knowledge of interest rates of savings post FLP is also

much more for SHGs than banks (See table 20). More percentage of people had

detailed knowledge on savings in SHGs than banks. This indicates that through

both formal and informal programs knowledge gained on informal institutions

like SHGs is greater than that of formal institutions like Banks or post offices.

This highlights the need of FL Programs to shift their focus towards formal saving

institutions.

Table 21: USAGE ENHANCEMENT AFTER FLP BIHAR JHARKHAN

D MADHYA PRADESH

ORISSA RAJASTHAN

UTTAR PRADESH

CHHATTISGARH

ALL INDIA


Bank 31% 50% 39% 27% 34% 19% 15% 18% 15% 35% 40% 61% 33% 30%

SHG 72% 41% 60% 68% 51% 26% 24% 44% 23% 32% 35% 56% 55% 35%

Post Office 2% 0% 10% 2% 7% 3% 8% 13% 6% 5% 6% 14% 7% 6%

Company 5% 1% 9% 1% 5% 6% 5% 15% 5% 6% 7% 8% 7% 5%

PACS 6% 1% 8% 4% 3% 4% 10% 15% 5% 2% 2% 8% 7% 5%

Chit Fund 2% 0% 3% 6% 8% 9% 15% 10% 2% 1% 1% 1% 4% 6%

Total Participants

699 138 671 341 517 216 491 460 310 416 624 270 3073

2080

When we look at the percentage of respondents of a formal program who started saving

in Banks post formal FLP (see Table 21), the figures from Bihar(50%) followed by the

figures from U.P.(40%) are higher as compared to the other states. These high

percentages in Bihar and U.P. can be attributed to the fact that financial inclusion was an

integral part of the mandate of the formal programs in these states. In Bihar the formal

program was by RBI with a targeted approach on opening a large number of individual

bank accounts for the respondents. This is primarily because it was a RBI formulated

Bank run program with primary thrust on bank related activities and accounts.

Similarly, even in U.P., UNDP had given a specific mandate on opening of bank accounts

for the respondents of their ISMW program. This implies that even though knowledge

was imparted on savings in Banks in all formal FLP programs in various states but an

impact in terms of enhanced usage of bank as a saving institution was brought about only


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Page 57 of 108

in those states where the organizations themselves facilitated the opening of these

accounts. Thus, as of now the formal programs have not been able to enkindle people

with the need to open bank accounts on their own for saving purposes. Hence, financial

inclusion is not occurring as a consequence of formal financial literacy programs; instead

financial inclusion is happening only where it is been made an integral part of the literacy

program‟s mandate and the organization has taken a step further from FL training by

opening the accounts.

Another conclusion that can be drawn from the above table 21, by comparing the data

across various states for enhanced usage after an informal program is the percentage of

respondents who started saving in Rajasthan was considerably higher in all kinds of

institutions other than Bank and SHGs in comparison to other states. This higher usage

enhancement can be attributed to increased awareness about various saving institutions

imparted through the comprehensive SHG training programs by PEDO and IBTADA.

These two programs are brought into light not only by field observation but also by the

primary survey data in hand. If we look at table 20 and 21 (previous two tables), about

50% of respondents conceded that they were taught about various saving institutions

especially Banks and SHGs in their program. Now we know that about 50 % of the

respondents covered under Informal FLP in Rajasthan were from these two SHG capacity

building programs (PEDO and IBTADA), this information can be combined with the

information from qualitative sheets of investigators that clearly point out that these two

programs were found to be highly effective as compared to all other informal programs in

Rajasthan. Further Table 20 points out that knowledge enhancement through these

programs was as high as 80-90% with a high percentage of people having detailed

understanding on even the interest rates of these institutions. Hence, we can safely

conclude that these two SHG capacity building programs are facilitating the use of

various saving institutions by imparting relevant knowledge and increasing the

understanding of their beneficiaries on the same.

A close comparison of the Orissa data in the above 3 tables (19, 20 21) reveals some

intriguing observations- firstly, the awareness level of Banks and SHGs as saving

institutions are quite high (around 83%) while the corresponding detailed knowledge of

interest rates in these institutions is considerably low Secondly, from Table 4.8 we

observe that usage enhancement post FLP is below average as compared to other states.

In light of these observations, we can possibly infer that though primitive knowledge of

Banks and SHGs is higher in Orissa but detailed knowledge on interest rates and

henceforth benefits of savings is still low. Also, these SHG programs provide just the

basic level of awareness which is consequently high in case of both formal and informal

programs and hence has nothing to do with the programs per se. To conclude with, the

high levels of basic awareness on savings should be seen in wake of the strong presence

of SHG movement in these places rather than as a consequence of the FLPs surveyed.

This inference is further strengthened later on, on observing the credit related data.


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Table 22: Awareness of Different Types of Saving Products (%)

Saving Products

Bihar Jharkhand

Madhya Pradesh

Orissa Rajasthan Uttar Pradesh

Chhattisgarh

Savings A/C 74.6 62.1 73.2 69.7 60.3 71.3 52.6

Fixed Deposit A/C

26.3 26.5 30.7 29.6 37.5 35.0 13.0

Recurring A/c 14.5 14.3 10.8 33.0 21.6 27.9 9.6

No Frills A/C 7.9 6.9 5.9 12.7 20.6 33.8 8.9

Awareness on saving accounts was found to be highest in comparison to other form of

accounts across all states. This was followed by fixed deposit accounts, recurring

accounts and No frill accounts. Even after the financial literacy program, the knowledge

of no frills account is the lowest among the respondents. The highest percentage is infact

seen in Uttar Pradesh and Rajasthan, where the ISMW program was conducted. In other

states, the figures are quite low (around 7%). It is therefore quite evident that the

coverage of the products other than savings is limited in the current financial literacy

program. This has implications about the knowledge being imparted and it needs to

further broaden in view of the services which are meant for the financially excluded such

as no frill accounts.


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Page 59 of 108

Table 23: CONTENT COVERED ON VARIOUS SAVING A/c AND ITS EFFECTIVENESS Type of Account

BIHAR JHARKHAND

MADHYA PRADESH

ORISSA RAJASTHAN

UTTAR PRADESH

CHHATTISGARH

ALL INDIA


Savings A/c

Covered in FLP

74%

65%

59%

67%

73%

69%

62%

60%

75%

54%

83%

54%

63%

73%

Understanding of the account

93%

93%

85%

91%

84%

72%

84%

87%

54%

81%

86%

86%

87%

81%

Fixed Deposit

Covered in FLP

18%

23%

23%

34%

44%

44%

38%

41%

50%

33%

56%

11%

27%

46%


77%

78%

82%

55%

61%

51%

45%

78%

42%

62%

50%

76%

70%

51%

Recurring Account

Covered in FLP

12%

17%

14%

20%

28%

38%

33%

28%

29%

29%

54%

9% 20%

37%


59%

71%

75%

19%

35%

53%

69%

66%

31%

50%

46%

79%

57%

48%

No Frills Account

Covered in FLP

8% 17%

8% 18%

25%

26%

27%

27%

24%

22%

60%

9% 15%

35%


47%

61%

32%

5% 19%

5% 26%

50%

16%

34%

52%

79%

34%

38%

Sample 699 138 671 0 341 517 216 491 460 310 416 624 270 0 3073

2080

Content coverage on various types of saving products like saving a/c, FD and RD was

more in formal than informal programs (Table 23). The relation between the

understanding of the participants on various saving products and its coverage in financial

literacy program is represented in the above table. It can be clearly observed from the

responses tabulated above that the financial literacy program emphasized on savings

accounts and their emphasis was lower in other types of products which has direct impact

on the understanding of those accounts among the participants. While 73% respondents

said savings account was covered in FLP, only 35% said No Frills account was also

covered. Against these percentages the number of participants who understood savings

account and No Frills account was 69% and 22% respectively. For savings accounts,

almost 60-70% respondents replied that they had functional understanding. But this

awareness is mostly restricted to saving accounts and content coverage on FD, RD and

No frill still remains quite low. It is reinforced from the above table that formal financial

literacy program emphasized on banks as a savings institution as we observe that across

all states except Orissa where higher number of respondents in formal financial program

could recollect various types of savings account being thought to them.

Barring Rajasthan and Uttar Pradesh, across all other states usage of savings accounts

was almost same for formal and informal programs (Table 24). Formal programs of U.P.

showed a higher percentage than other states because as stated earlier, their literacy

programs included a compulsory mandate of financial inclusion.


UN Focus states

Page 60 of 108

Table 24: USAGE OF VARIOUS SAVINGS PRODUCTS

Use of different type of accounts

BIHAR JHARKHAND MADHYA PRADESH ORISSA RAJASTHAN

UTTAR PRADESH

CHHATTISGARH ALL INDIA


Savings A/C 67% 64% 47% 0 58% 64% 59% 54% 48% 34% 55% 69% 46% 0 55% 59%

Fixed A/C 7% 12% 14% 0 13% 13% 26% 14% 22% 15% 19% 17% 6% 0 14% 15%

Recurring A/C 4% 8% 11% 0 2% 4% 14% 13% 11% 6% 14% 15% 5% 0 9% 10%

No Frills A/C 5% 8% 9% 0 1% 4% 2% 7% 19% 6% 10% 35% 8% 0 8% 15%

Sample 699 138 671 0 341 517 216 491 460 310 416 624 270 0 3073 208

0

In case of formal programs in Rajasthan, a low level of usage is observed along with a

lower than average level of awareness for savings related content covered in the formal

ISMW program. This is primarily due to the informal training program conducted by

PEDO and IBTADA under their SHG capacity building program which had a more

profound impact.

Table 25: KNOWLEDGE IMPARTED IN FLP ON OPENING AND OPERATING AN A/C

Bihar Jharkhand Madhya Pradesh Orissa Rajasthan

Uttar Pradesh

Chhattisgarh

ALL INDIA


Opening a saving/deposit account

64%

57%

53%

73%

65%

51%

62%

50%

49%

53%

78%

71%

59%

65%

Operating a savings/ deposit account

57%

57%

39%

58%

54%

42%

62%

45%

44%

42%

62%

61%

49%

57%

Nomination facility 31%

46%

19%

30%

30%

31%

47%

31%

25%

32%

46%

53%

30%

39%

Sample 699 138 671 0 341 517 216 491 460 310 416 624 270 0 3073

2080

As seen in the table 25 above, not much difference was observed across various states

and for formal versus informal programs, in knowledge imparted on operational

procedures of savings accounts. On an average about 50-60% of the respondents replied

that their FLP had imparted knowledge on opening and operational procedures of savings

accounts. The only exception in this case was U.P. where 78% respondents said that

knowledge on opening of accounts was given to them. In U.P. two formal programs were

surveyed- one was the ISMW program and the second was the NABARD program. In the

former, UNDP had included a mandate of opening about 800 individual accounts along

with theoretical knowledge and in the latter- NABARD program, a primary focus of the

program was to impart knowledge on teaching the participants the procedure for opening

bank accounts.


UN Focus states

Page 61 of 108

Table 26: AWARENESS OF SAVING A/c PROCEDURES Confiden

ce Level BIHAR JHARKH

AND MADHYA PRADES

H

ORISSA RAJASTHAN

UTTAR PRADES

H

Chhattisgarh

ALL INDIA


Opening a saving account

Don’t Know

29%

38%

39%

35%

37%

27%

41%

29%

52%

28%

21%

26%

31%

35%

Less Confident

43%

25%

46%

33%

34%

39%

30%

48%

34%

35%

38%

54%

43%

34%

Very Confident

28%

38%

15%

32%

29%

34%

30%

24%

14%

37%

41%

16%

25%

31%

Operative a saving account

Don’t Know

37%

38%

50%

45%

45%

33%

43%

32%

58%

34%

27%

34%

39%

41%

Less Confident

34%

23%

39%

25%

26%

47%

34%

44%

30%

32%

35%

44%

37%

31%

Very Confident

28%

38%

11%

30%

29%

20%

23%

24%

12%

34%

38%

17%

23%

28%

Sample 699

138

671

0 341

517

216

491

460

310

416

624

270

0 3073

2080

Observing the above tables, in Bihar about 65% savings accounts were opened after FLP

(table 24) but only about 38% of total respondents said that they understood the

procedural knowledge of opening and operating the accounts (Table 26). This is because

NABARD and RBI programs in Bihar primarily focused on financial inclusion and hence

working knowledge of operating these accounts was not imparted in detail. Their

accounts were opened with typical hand holding support rather than an awareness led

approach.

In contrast to this, U.P. data shows that about 69% respondents said that savings account

was opened post FLP as well as 35% opened no-frill accounts (Table 24) but about 40%

of the respondents were confident of opening and operating the accounts. As stated

earlier, in U.P. a combination of theoretical knowledge supplemented with practical

exposure resulted in a high awareness among the respondents (Table 26).

Again in Orissa, we observe that a higher percentage of people conceded that they “Don‟t

Know” about the procedures of opening and operating an account. This observation

strengthens our earlier conclusion that in depth knowledge of saving accounts is missing

in Orissa. People have more of superficial knowledge, gained through their prior linkage

with SHGs rather than through formal or informal programs surveyed.

Across all states, on an average, 30% of the respondents replied that they were quite

confident on opening and operating accounts. Relatively, this is a higher percentage of

awareness as compared to a state data comprising of average individuals who have not

necessarily undergone a FLP. Thus, after FLP a good number of people gained working

knowledge of accounts but still, there is a lot of scope for improvement here and the

percentages should be higher than at least 70%. If proper working knowledge is imparted

with the financial inclusion programs, then only it will be able to deliver the desired

result of emancipation of the disadvantaged.


UN Focus states

Page 62 of 108

CREDIT Table 27: AWARENESS OF VARIOUS FINANCIAL INSTITUTIONS FOR CREDIT- GENERAL

AWARENESS Institution

BIHAR JHARKHAND

MADHYA PRADESH

ORISSA RAJASTHAN

UTTAR PRADESH

CHHATTISGARH

All India

Knowledge of Inter

est Rate

of Institution

Knowled

ge on

Procedure on Institution

Interest

Rate of

Institution

Knowled

ge on


Interest

Rate of

Institution

Knowled

ge on


Interest

Rate of

Institution

Knowled

ge on


Interest

Rate of

Institution

Knowled

ge on


Interest

Rate of

Institution

Knowled

ge on


Interest

Rate of

Institution

Knowled

ge on


Interest Rate of Institution

Knowledge on Procedure on Institution

Bank 32% 32% 30% 33% 35% 37% 34% 30% 43% 40% 52% 49% 43% 41% 38% 38%

SHG 69% 64% 54% 51% 60% 56% 73% 58% 52% 48% 42% 40% 65% 61% 58% 53%

MFI 17% 16% 5% 9% 33% 36% 9% 10% 21% 17% 25% 24% 25% 21% 19% 19%

COMPANIES

8% 8% 11% 12% 8% 10% 6% 7% 16% 13% 16% 17% 5% 5% 11% 11%

Sample

902 875 905 707 889 1059 300 5637

Respondents from all the states were asked on their awareness of various financial

institutions as a credit source with detailed knowledge of interest rates and procedural

knowledge of process and documentation involved in a loan. Bank related credit

awareness was found to be almost the same – about 30-35% in all the states barring U.P.

The results in U.P. were visibly higher with about 50% of the respondents having detailed

knowledge of banks interest rates and procedures. As mentioned earlier, we observed the

same trend in U.P. on awareness in bank related savings.

This high level of awareness in bank related savings and credit in U.P. can be attributed

to the fact that more than 50% of the total respondents in U.P. had undergone a 2 week

long recently conducted FL program by NABARD from December 09 to January 10.

This program specifically focused on imparting bank related knowledge in a 2 day period

on credit and savings. They provided operational knowledge on opening bank accounts

and loaning through a lecture mode that was effectively complemented by puppet shows

and a film named “Raju and the Money tree” based on RBI developed content. This can

also be seen in light of the following two tables (Table 28 and Table 29). These two

tables indicate the relatively high content coverage on detailed aspects of loaning (i.e.

interest rates and procedural know-how) and a correspondingly high enhancement

awareness of these respondents. On an average about 65% and 73% of the respondents

have an understanding of the interest rate of banks and SHGs. On the other hand, the

knowledge about MFIs and other institutions is quite low. Thus, we see that the formal

programs in Uttar Pradesh, particularly the NABARD- UNDP collaborative program has

given good working knowledge of both credit and saving related issues to its

beneficiaries.

Across all the states barring U.P., knowledge on SHG related credit was about 10-30%

higher than awareness on bank credit which clearly implies that even after FLP, the credit


UN Focus states

Page 63 of 108

related awareness on interest rates and procedures of loaning was more for SHGs than

Banks.

Another intriguing observation comes into light when we compare the general awareness

of respondents on Savings versus Credit. As far as banks is concerned, detailed

awareness on interest rates in savings was about 15% across all states, while the detailed

awareness on interest rates on credit is found to be double of savings (about 30%). Even

in SHGs, the detailed awareness on interest rates in credit is about 60%, which is quite

higher than the 35-40% awareness on interest rates of SHG savings. Hence we observe a

specific trend in beneficiaries of various FLP programs across all states where they

exhibit a greater awareness on credit than savings. This can be directly attributed to the

greater thrust of FL programs on credit rather than savings. This is more so true in case of

informal programs which run with an objective of providing credit linkages and features

like budgeting, savings etc are generally low on their priority.

Table 28: CONTENT COVERED ON CREDIT INSTITUTIONS AND AWARENESS OF

RESPONDENTS Institution

BIHAR JHARKHAND

MADHYA PRADES

H

ORISSA RAJASTHAN

UTTAR PRADES

H

CHHATTISGARH

ALL INDIA


Bank Covered in FL Program

33%

39%

35%

0 50%

64%

68%

77%

57%

68%

51%

79%

50%

0 45%

71%

Understanding of Interest Rate

72%

61%

68%

0 46%

54%

36%

40%

70%

43%

70%

65%

80%

0 64%

53%

SHG Covered in FL Program

78%

41%

52%

0 79%

76%

63%

74%

63%

63%

42%

69%

69%

0 64%

69%


97%

89%

88%

0 85%

69%

76%

80%

91%

54%

54%

73%

93%

0 87%

72%

MFI Covered in FL Program

20%

1% 3% 0 54%

44%

17%

22%

26%

26%

59%

37%

28%

0 27%

31%


88%

0% 52%

0 73%

55%

24%

26%

78%

41%

69%

17%

85%

0 74%

35%

Company

Covered in FL Program

7% 0% 16%

0 17%

20%

8% 21%

25%

20%

25%

43%

6% 0 15%

26%


81%

#DIV/0

!

41%

0 20%

31%

0% 24%

56%

25%

37%

38%

24%

0 43%

32%

Sample

699 138 671 0 341 517 216 491 460 310 416 624 270 0 3073

2080


UN Focus states

Page 64 of 108

Table 29: KNOWLEDGE OF LOAN PROCUREMENT BIHAR JHARKHA

ND MADHYA PRADES

H

ORISSA RAJASTHAN

UTTAR PRADES

H

CHHATTISGARH

ALL INDIA

Data IF F IF F IF F IF F IF F IF F IF F IF F

Bank Covered in FLP 33%

26%

42%

0 47%

65%

56%

72%

54%

59%

48%

74%

46%

0 44%

66%

Understanding of procedures

75%

56%

75%

0 55%

57%

33%

36%

72%

39%

72%

64%

85%

0 69%

52%

SHG Covered in FLP 75%

31%

51%

0 69%

71%

51%

65%

63%

60%

40%

67%

66%

0 60%

64%


95%

91%

85%

0 84%

71%

67%

62%

86%

55%

59%

67%

92%

0 85%

66%

MFI Covered in FLP 19%

0% 8% 0 54%

42%

14%

19%

25%

21%

54%

38%

23%

0 26%

29%


87%

#DIV/0

!

47%

0 83%

60%

26%

33%

69%

32%

70%

20%

85%

0 74%

37%

COMPANY

Covered in FLP 7% 1% 16%

0 19%

23%

16%

19%

20%

17%

25%

43%

2% 0 15%

26%


78%

100%

45%

0 36%

34%

3% 25%

66%

24%

45%

39%

60%

0 49%

34%

Sample 699 138 671 0 341 517 216 491 460 310 416 624 270 0 3073

2080

A close comparison of the figures in the above two tables 28 and 29 for various states

reveals that in case of formal programs, U.P. outperformed all other states as far as high

content coverage and the consequent awareness enhancement for respondents is

concerned for both bank and SHG related credit.

In case of informal programs, Rajasthan showed the highest percentage in terms of in

depth content covered on bank and SHG related loaning and the corresponding

understanding of respondents. The informal programs in Rajasthan majorly included

SHG capacity building programs by PEDO and IBTADA which were well structured

programs and gave good in depth knowledge of interest rates and procedures of banks

and SHGs for loaning. Also, in Rajasthan respondents from the informal program

category included Credit awareness programs (FLCC) by Banks like Bank of Baroda,

SBBJ, PNB etc. Hence we observe that more than 70% respondents from informal

programs in Rajasthan say that their program had covered in depth knowledge on Banks

and SHGs and correspondingly more than 75% and 90% of them remarked that they have

detailed knowledge on Banks and SHGs respectively.

Another noteworthy point that can be brought about from the above table is the higher

content coverage on Bank related credit awareness in formal programs as compared to

informal programs. Thus, formal programs have a more underlying focus on spreading

awareness on Bank credit than informal ones.

The above table also shows that the enhanced awareness on credit about interest rates and

procedural know how is quite higher for SHGs than formal institutions like banks. The

reason for this is twofold. Firstly, the informal programs primarily focus on credit in

SHGs and not banks. Secondly, more than 70% of the participants of formal programs are


UN Focus states

Page 65 of 108

women SHG members, so inevitably the focus while teaching boils down to SHGs and

hence, the trainers cite examples from the same.

In case of respondents of formal programs from Rajasthan, much lower enhancement of

credit related awareness was observed. This re-imposes the fact stated in the savings

section. The impact or rather effectiveness of the formal ISMW program in Rajasthan

comes out to be quite low when compared to the ISMW programs in other states. Though

a majority of people concede that content on savings and credit was taught in the program

but correspondingly, a phenomenally low percentage of them remark that their awareness

has increased thereafter. This phenomenon demands a further probe into the differences

in the ISMW program in Rajasthan as compared to other states namely- U.P., M.P. and

Orissa. This anomaly can be attributed to primarily 3 reasons:

Firstly, a lower level of literacy was observed among respondents in Rajasthan as

compared to Orissa. Rajasthan had the highest percentage of illiterate respondents

as compared to all other states. The difference was particularly high when

compared with Orissa (about 52% illiterate respondents in Rajasthan as compared

to about 25% in Orissa). Hence, it was more difficult for participants from

Rajasthan to comprehend the financial literacy concepts taught in the ISMW

program. Also, Orissa respondents had better prior knowledge of financial

concepts due to their prior exposure to SHG programs.

Secondly, an important difference between ISMW program of Rajasthan versus

U.P. and M.P. was the quality of training. The trainers in case of Rajasthan were

randomly chosen people while in U.P. the trainers were chosen from within the

community because of which they were able to explain things in a more

conversant and easy way. Also, in M.P. the trainers were ISMW professional

trainers who were much well versed with the concepts and had a more efficient

delivery mechanism. Also, in both these states continuous monitoring and re-

evaluation was done. The conduction of program in U.P. was being done by a

local NGO but it was being monitored by ISMW officials there. In M.P. the

program was conducted by a sister organization of ISMW and hence, credibility

of imparting a quality program was not in question.

Thirdly, in M.P. the program was conducted on an ongoing basis with continuous

follow up and various awareness camps at different intervals. This ensured

retention of knowledge among the respondents. Also, in U.P. the duration of the

program was of 3 hours for 3 days each plus a follow up on continuous basis for

strengthening the SHGs and opening accounts etc was done. All these factors

attributed to a greater retention of knowledge than Rajasthan where the whole

program was conducted in a period of just 2 days- 2 hours each.

These observations highlight the fact that even when the same module of a FLP in

imparted, its effectiveness depends on the quality of delivery and the continuous efforts

put in by the implementing organization.


UN Focus states

Page 66 of 108

Table 30: Awareness of different loan features

Knowledge of BIHAR JHARKHAND

MADHYA

PRADESH

ORISSA

RAJASTHAN

UTTAR PRADE

SH

CHHATTISGA

RH

ALL INDIA

Compound Vs Simple Interest Rates

40% 22% 48% 35% 44% 52% 37% 41%

Flat Rate Vs Diminishing Rate

13% 8% 34% 20% 37% 31% 31% 25%

Loan Processing Fee 40% 10% 40% 32% 30% 30% 34% 31%

Security/ Mortgage/ Collateral

20% 12% 37% 48% 33% 42% 37% 32%

Structuring of Loan Repayment

15% 15% 33% 26% 25% 28% 29% 24%

Cost Benefit of pre- scheduled loan closure

38% 42% 46% 31% 38% 63% 32% 43%

Sample 902 875 905 707 889 1059 300 5637

Detailed awareness on various features of a loan like various types of interest rates, loan

processing fee, benefits of pre-payment of a loan, self loan appraisal, etc. was quite low

across all states, on an average only 30% of the respondents were aware on the same.

This percentage was even lower in case of Jharkhand.

On an overall basis across all states, particularly low levels of awareness were observed

in terms of interest rates, loaning procedures and knowledge on various loan features.

Only 30-35% of total respondents were aware of these details. Despite of the fact that a

majority of these people (about 90%) have undergone some or the other FL training

program these low levels of awareness indicate the lacunae in our current Financial

Literacy programs which are not able to spread the necessary detailed awareness among

its participants/beneficiaries.


UN Focus states

Page 67 of 108

Table 31: CONTENT COVERED ON DIFFERENT FEATURES OF A LOAN AND AWARENESS

OF RESPONDENTS POST FLP Bihar Jharkhand Madhya

Pradesh Orissa Rajasthan Uttar

Pradesh Chhattisga

rh All

India IF F IF F IF F IF F IF F IF F IF F IF F

Compound vs. simple interest

35% 14% 21% 0 57% 59% 31% 50% 53% 55% 45% 77% 29% 0 38% 59%

Understanding about the feature

89% 89% 81% 0 68% 69% 47% 62% 76% 57% 70% 65% 86% 0 76% 65%

Flat vs. diminishing rate

15% 8% 10% 0 45% 49% 30% 37% 47% 35% 35% 63% 23% 0 26% 46%


62% 73% 58% 0 61% 56% 31% 36% 79% 56% 68% 46% 84% 0 66% 48%

Loan Processing fee

41% 19% 8% 0 57% 50% 38% 42% 40% 30% 34% 52% 30% 0 33% 44%


90% 77% 40% 0 80% 58% 47% 52% 79% 48% 74% 49% 90% 0 77% 53%

Security/ Mortgage/ Collateral

21% 10% 11% 0 50% 40% 35% 41% 42% 25% 44% 57% 29% 0 30% 41%


78% 71% 73% 0 76% 60% 61% 70% 85% 59% 81% 62% 92% 0 79% 63%

Structuring of loan repayment

16% 8% 13% 0 43% 45% 35% 31% 39% 22% 31% 52% 23% 0 26% 38%


70% 73% 77% 0 72% 63% 52% 50% 68% 53% 62% 49% 89% 0 69% 54%

Cost- benefit of pre closure of loan

44% 14% 44% 0 57% 59% 55% 47% 54% 31% 58% 74% 30% 0 49% 54%


88% 89% 93% 0 76% 67% 37% 40% 83% 60% 84% 79% 83% 0 82% 66%

Sample 699 138 671 341 517 216 491 460 310 416 624 270 3073

2080

A comparative glance at the above table 31 indicates that informal programs in Rajasthan

exhibit a higher level of awareness in terms of detailed knowledge gained of various loan

features post FLP. Here about 50% of the respondents who had attended the informal

programs remarked that knowledge on various loan features was imparted to them and

consequently the knowledge retention of the same was quite high. About 80-85% of those

who were taught about various loan features were successfully able to retain it. A look

into the informal programs surveyed in Rajasthan reveals that these included SHG

Capacity building programs by various organizations, the most effective ones being

PEDO and IBTADA and Credit awareness Programs by various Banks. Hence those 50%

of the respondents who said that detailed knowledge of various loan features was

imparted in their program were primarily beneficiaries who had attended FLCC

(Financial Literacy Credit Counselling) by Bank of Baroda and SBBJ that imparted

detailed knowledge on credit features, in addition to individual counselling in some cases

and also, SHG members who had undergone training from PEDO and IBTADA. From


UN Focus states

Page 68 of 108

the field, the qualitative reports show that the trainings from PEDO and IBTADA were

quite comprehensive and structured and hence, more effective than other SHG capacity

building programs.

Table 32: Loan taken after FLP

BIHAR JHARKHA

ND MADHYA PRADESH ORISSA

RAJASTHAN

UTTAR PRADESH

CHHATTISGARH

ALL INDIA


SHG 45% 17% 53% 0 52% 31% 30% 31% 50% 25% 13% 16% 42% 0 43% 42%

MFI 16% 0% 6% 0 40% 25% 8% 5% 13% 4% 49% 2% 21% 0 20% 10%

BANK 3% 6% 12% 0 9% 7% 7% 8% 14% 12% 13% 16% 12% 0 10% 14%

Cooperatives/PACS 2% 1% 3%

0 0% 0% 4% 3% 2% 3% 1% 1% 4%

0 2% 3%

Money Lenders 19% 24% 18%

0 14% 8% 6% 8% 20% 16% 8% 14% 14%

0 15% 18%

Local Traders 4% 4% 22% 0 6% 9% 4% 2% 5% 6% 14% 13% 3% 0 10% 15%

Friends/Relatives 0% 0% 4%

0 1% 0% 7% 7% 0% 2% 1% 0% 8%

0 2% 3%

Company 0% 0% 5% 0 0% 0% 0% 0% 3% 2% 1% 1% 8% 0 3% 2%

Insurance Company 1% 0% 11% 0 2% 5% 8% 7% 8% 4% 2% 8% 1% 0 5% 10%

Never borrowed 16% 53% 5%

0 13% 35% 10% 22% 9% 47% 13% 27% 26%

0 12% 34%

Borrowed before FL 5% 1% 1%

0 3% 4% 25% 35% 1% 2% 3% 13% 8%

0 5% 14%

Sample 699 138 671 0 341 517 216 491 460 310 416 624 270 0

3073

2080

First of all we see that the above table 32 is in line with what we observed in table 28 on

general awareness of various credit institutions. Observations from the above table

validate the inference drawn in table 28 that awareness about SHGs in quite higher than

awareness on banks. In the above table we observe that be it a formal or an informal

program, a lot more people have availed credit from SHGs than banks and this greater

usage of SHGs for credit gives the reasoning behind enhanced awareness on the same.

The more people practically use the service, the more understanding they develop about

the same and hence, SHG awareness is higher than banks among the participants.

Another observation from the table 32 is that, in Rajasthan the informal programs have

been able to link people to banks for credit at a higher percentage than others. This can

again be attributed to the better SHG capacity building programs there.

Also, from an overall point of view, we observe that informal programs have provided a

greater linkage to credit be it from Banks, MFI‟s or SHG‟s than the formal programs.

This exhibits that the thrust of informal programs is primarily on providing credit

linkages. If we link this observation to the previous tables on detailed content coverage of

various aspects of credit, we observed that the knowledge imparted on these is quite less

in comparison to the credit linkages provided. This means that a lot of informal programs

are providing loans to the beneficiaries without imparting much knowledge on the

knowhow of terms and conditions involved. One exception to this is the informal

programs of PEDO and IBTADA in Rajasthan, which show a detailed coverage of

various aspects of loaning.


UN Focus states

Page 69 of 108

In case of loan from money lenders, though the informal FLP in Rajasthan provides the

highest credit linkage to banks and SHGs as compared to other states but even the

percentage of respondents who took loan from money lenders is relatively higher in this

same category. This can be attributed to the inherent high credit demand in Rajasthan

which is not met, despite of the higher credit linkages to banks and SHGs.

Another noteworthy observation comes from the loan taken from moneylenders by

participants of RBI‟s formal FL Program. Despite of RBI‟s initiative of opening

numerous bank accounts for the participants, a higher percentage of these people still

borrowed from moneylenders given the poor credit awareness as well as linkage provided

through the program.

Also, our previous inference on Orissa, about enhanced awareness of respondents owing

to prior knowledge from SHG linkages, is further strengthened when we look at the data

of Orissa for “had already borrowed money before FLP.” The highest percentages are

recorded here, thanks to a prior presence of SHG movement, even before the FLP in

question was conducted.

Table 33: Awareness on different loan products

BIHAR JHARKHAND

MADHYA PRADES

H

ORISSA RAJASTHAN

UTTAR PRADES

H

CHHATTISGARH

Grand Total

Personal Loan

52% 25% 57% 74% 47% 40% 42% 48%

Vehicle Loan

26% 15% 36% 22% 37% 42% 32% 30%

Education Loan

19% 11% 32% 24% 32% 40% 21% 26%

Non Farm Loan

21% 9% 38% 24% 35% 44% 20% 29%

Agriculture Loan

13% 7% 28% 18% 27% 44% 17% 23%

Agri Allied Loan

41% 27% 41% 50% 40% 49% 17% 40%

Sample 902 875 905 707 889 1059 300 5637

Table 34: Content covered on various loan products in FLP BIHAR JHARKHA

ND MADHYA PRADES

H

ORISSA RAJASTHAN

UTTAR PRADES

H

CHHATTIS

GARH

ALL INDIA


Personal Loan

Covered in FLP

53%

22%

27%

0 56%

65%

65%

62%

51%

53%

46%

64%

32%

0 45%

59%

Understanding

91%

67%

69%

0 82%

78%

82%

77%

74%

60%

66%

57%

74%

0 79%

68%

Vehicle Loan Covered in FLP

19%

20%

20%

0 40%

46%

30%

35%

35%

48%

41%

60%

16%

0 28%

46%

Understanding

81%

75%

68%

0 71%

67%

42%

35%

76%

52%

69%

61%

93%

0 72%

57%

Education Loan

Covered in FLP

18%

19%

10%

0 35%

44%

26%

32%

29%

44%

37%

60%

10%

0 22%

45%


UN Focus states

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BIHAR JHARKHAND

MADHYA PRADES

H

ORISSA RAJASTHAN

UTTAR PRADES

H

CHHATTIS

GARH

ALL INDIA


Understanding

73%

69%

84%

0 60%

57%

57%

36%

71%

49%

70%

61%

92%

0 70%

54%

Non Farm Loan

Covered in FLP

21%

17%

8% 0 49%

39%

28%

31%

37%

40%

45%

60%

10%

0 26%

42%

Understanding

78%

67%

72%

0 73%

61%

48%

31%

77%

57%

78%

67%

73%

0 74%

58%

Short Term Loan

Covered in FLP

12%

16%

7% 0 39%

33%

23%

30%

29%

33%

36%

63%

9% 0 20%

40%

Understanding

66%

68%

71%

0 75%

59%

33%

39%

65%

53%

70%

68%

84%

0 67%

59%

Agriculture Allied Loan

Covered in FLP

42%

23%

26%

0 51%

47%

51%

57%

50%

43%

40%

71%

8% 0 38%

54%

Understanding

94%

84%

85%

0 85%

73%

69%

73%

80%

65%

71%

73%

90%

0 83%

72%

Sample 699 138 671 341 517 216 491 460 310 416 624 270 3073

2080

As can be seen in Table 33, the respondents in the all the states were aware about

personal loans, which is mostly given by the SHGs. The awareness and knowledge about

agriculture, agri-allied and non-farm loans were found to be higher in Rajasthan, Uttar

Pradesh and Madhya Pradesh, again indicating both prior knowledge about these loan

products as well as the sensitization through FLP. Secondly, there was not much

difference in knowledge imparted on various loan types in formal versus informal

programs across the states. Similar trend also is observed in Table 34 about the coverage

of loan products in FLP where expressed percentages were higher for these states of

Rajasthan, Uttar Pradesh and Madhya Pradesh for agriculture, agri-allied and non-farm

loans. This is again indicating the role financial literacy play in enhancing general

awareness and its subsequent usage.


UN Focus states

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INSURANCE

Table 35: Awareness of different insurance products

Data BIHAR JHARKHAND

MADHYA PRADES

H

ORISSA RAJASTHAN

UTTAR PRADES

H

CHHATTISGARH

ALL INDIA

Life Insurance

57% 43% 65% 70% 59% 69% 56% 60%

Health Insurance

24% 16% 35% 38% 37% 39% 41% 32%

Asset Insurance

11% 8% 24% 13% 23% 27% 12% 18%

Cattle Insurance

18% 13% 25% 21% 35% 38% 19% 25%

Micro Enterprise Insurance

9% 6% 16% 18% 20% 27% 13% 16%

Crop Insurance

6% 5% 2% 17% 8% 11% 10% 8%

Sample 902 875 905 707 889 1059 300 5637

Awareness levels in Uttar Pradesh, Madhya Pradesh and Orissa were higher on insurance

products (particularly life insurance) because a large percentage of respondents from

these states had insurance policies and also coverage in FLP (See Table 36). The

respective percentages of respondents with an insurance policy in U.P., M.P. and Orissa

were 43.6, 40.6, and 41.0%, which were higher than other states which had an average of

only 25% respondents with insurance policies. On the other hand, the awareness of other

form of insurance was much lower across all states. Awareness of cattle insurance and

health insurance seemed to higher in Uttar Pradesh, Rajasthan and Madhya Pradesh.

Table 36: Content covered on various insurance and its effectiveness

BIHAR JHARKHAND

MADHYA PRADES

H

ORISSA RAJASTHAN

UTTAR PRADE

SH

CHHATTISGARH

ALL INDIA


Life Insurance

Covered in FLP

48%

28%

28% 0

68%

69%

58%

55%

63%

82%

54%

81%

41%

0 49%

69%

Awareness

92%

92%

86%

0 83%

81%

75%

74%

80%

67%

81%

79%

95%

0 85%

77%

Health Insurance

Covered in FLP

23%

17%

20%

0 37%

53%

19%

31%

49%

58%

38%

61%

36%

0 31%

49%

Awareness

79%

83%

65%

0 61%

62%

52%

56%

71%

43%

72%

54%

93%

0 72%

56%

Asset Insurance

Covered in FLP

8%

13%

5%

0 30%

36%

13%

32%

26%

47%

29%

53%

14%

0 16%

40%

Awareness

61%

72%

65%

0 59%

53%

44%

22%

66%

39%

61%

51%

63%

0 61%

44%

Cattle Insurance

Covered in FLP

15%

15%

16%

0 32%

39%

24%

25%

45%

49%

31%

62%

19%

0 25%

42%

Awareness

81%

67%

62%

0 64%

48%

50%

38%

76%

48%

65%

66%

73%

0 69%

55%

Micro Covere 7 9 6 0 26 26 22 19 26 27 27 49 15 0 16 30


UN Focus states

Page 72 of 108

Enterprise Insurance

d in FLP

% % % % % % % % % % % % % %

Awareness

54%

67%

36%

0 57%

38%

38%

34%

68%

37%

69%

53%

71%

0 60%

45%

Crop Insurance

Covered in FLP

3%

9%

6%

0

1% 2

% 21%

27%

10% 7%

8%

14%

7%

0

7% 13%

Awareness

67%

85%

44%

0 100%

82%

48%

37%

81%

68%

75%

75%

83% 0

65%

56%

Sample 699

138

671 341

517

216

491

460

310

416

624

270

3073

2080

Table 37: Content covered in FLP on insurance feature BIHAR JHARKHA

ND MADHYA PRADES

H

ORISSA RAJASTHAN

UTTAR PRADES

H

CHHATTISGARH

ALL INDIA


Need for Insurance

Covered in FLP

17%

18%

24%

0 33%

28%

62%

55%

29%

27%

21%

32%

17%

0 26%

37%

Awareness

45%

36%

44%

0 82%

82%

84%

75%

57%

39%

69%

84%

2% 0 59%

69%

Premium Covered in FLP

17%

25%

24%

0 29%

22%

30%

40%

27%

24%

24%

33%

33%

0 24%

34%

Awareness

14%

18%

50%

0 54%

70%

49%

56%

43%

16%

60%

79%

1% 0 39%

52%

Risk Coverage

Covered in FLP

20%

25%

22%

0 28%

18%

19%

33%

23%

22%

26%

31%

33%

0 24%

31%

Awareness

17%

9% 23%

0 48%

51%

30%

41%

47%

15%

12%

39%

1% 0 25%

32%

Terms and Condition

Covered in FLP

20%

25%

22%

0 24%

14%

17%

33%

23%

24%

25%

29%

52%

0 25%

32%

Awareness

3% 3% 28%

0 39%

39%

35%

37%

38%

12%

9% 33%

1% 0 18%

24%

Benefits on Maturity

Covered in FLP

21%

27%

22%

0 24%

19%

32%

34%

25%

25%

23%

29%

33%

0 24%

31%

Awareness

16%

14%

45%

0 48%

65%

47%

50%

57%

23%

18%

53%

0% 0 33%

41%

Sample 699 138 671 0 341 517 216 491 460 310 416 624 270 0 3073

2080

The above table 36 shows that thrust is laid on life insurance as compared to all other

insurances and as far as enhanced understanding is concerned a lot of people who were

taught about life insurance became aware of it post FLP.

In Rajasthan, U.P. and M.P. knowledge about other insurances like Health and cattle

insurance were being provided though at a much lower scale than life insurance. As for

other states, knowledge imparted on any other insurance except life insurance was

practically missing. In terms of both content coverage and consequent awareness

enhancement of all insurance products, certain informal programs of Rajasthan

outperformed the other states.

Another noteworthy inference can be drawn from the table given above and the one given

below- Table 36 and Table 37. Interestingly, though about 80-90% respondents who were

taught about life insurance in their program replied that their understanding on the same

had increased but as far as detailed knowledge of insurance terms like premium, benefits

on maturity etc. is concerned, only 20-30% of the programs covered these aspects and


UN Focus states

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consequently the knowledge of detailed features of an insurance was abominably low.

This brings out a clear cut gap in the teaching of insurance through literacy programs. Be

it formal or informal, none of them lay emphasis on imparting knowledge on the various

features of insurance. As of now only a superficial knowledge is given to the

beneficiaries.

PERCEPTION OF THE FLP PROGRAM Table 38: WILLINGNESS FOR ANOTHER PROGRAM

BIHAR JHARKHAND

MADHYA PRADESH ORISSA RAJASTHAN

UTTAR PRADESH

CHHATTISGARH

ALL INDIA

Informal 94% 88% 98% 84% 90% 95% 96% 92%

Formal 93% 0 95% 70% 91% 95% 0 88%

Grand Total 94% 88% 96% 74% 90% 95% 96% 91%

No of participants in informal training program 699 671 341 216 460 416 270 3073

No of participants in formal training program 138 517 491 310 624 2080

Sample 837 671 858 707 770 1040 270 5153

The table 38 above clearly indicates the demand and interest among respondents to gain

knowledge on various aspects of financial services and products and their willingness to

attend another FL program. The only anomaly is in the Orissa data. The ISMW formal

program was conducted in Rajasthan, U.P., M.P. and Orissa, out of which only Orissa

shows a negative tendency to attend another program. The reason for this can be two

fold, Firstly, the level of literacy in respondents from Orissa was much higher. Only 25.6

% respondents were illiterate as compared to an average of 50% in other states. So, they

were better off in terms of financial literacy than their counterparts in other states.

Secondly, the ISMW program in Orissa was not conducted to its full capacity as in other

states. The whole ISMW module was not covered in Orissa and only parts of it were

taught. Considering the higher level of literacy, people had higher expectations from a FL

program which were obviously not met in this program and hence people are

disinterested to attend any other program. Also, as stated earlier in the report, the

respondents in Orissa were better informed prior to undergoing the FLP in question.

Their level of awareness was higher due to prior SHG linkage and hence, through a FLP

they expected detailed knowledge of financial concepts rather than a superficial coverage.


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Table 39: Tools Used By FLP Bihar Jharkhand Madhya

Pradesh Orissa Rajasthan Uttar

Pradesh Chhattisga

rh All India

Data IF F IF F IF F IF F IF F IF F IF F IF F

Video 7% 37% 7% - 2% 8% 3% 7% 10% 8% 22% 68% 16% - 9% 28%

Street Play

23% 54% 6% - 18% 31% 7% 43% 6% 7% 12% 64% 37% - 15% 42%

Role Play 3% 2% 3% - 3% 20% 25% 23% 6% 9% 2% 24% 22% - 7% 19%

Stories 22% 28% 20% - 30% 46% 32% 55% 31% 72% 13% 51% 7% - 22% 52%

Posters 7% 28% 8% - 16% 32% 24% 34% 43% 66% 35% 65% 22% - 20% 47%

Songs 9% 29% 7% - 13% 38% 7% 23% 23% 44% 10% 43% 17% - 12% 36%

Flash Charts

9% 5% 8% - 3% 17% 3% 11% 25% 39% 6% 24% 2% - 9% 20%

Lectures 89% 93% 75% - 88% 81% 45% 40% 75% 80% 84% 69% 93% - 80% 69%

Games 7% 0% 17% - 15% 30% 6% 14% 15% 31% 5% 26% 0% - 10% 23%

Exposure Visit

4% 0% 15% - 2% 2% 22% 8% 6% 3% 2% 8% 0% - 7% 5%

Sample 699 138 671 - 341 517 216 491 460 310 416 624 270 - 3073

2080

From the above table 39 that the formal programs used more varied methods as compared

to the informal programs. Besides lecture using stories and posters is a popular

methodology in formal programs. In general, the lecture method was used invariably in

all the states for both formal and informal programs. For informal programs, posters,

songs were more popular methods.

Table 40: DURATION OF VARIOUS FLP PROGRAMS BIHAR JHARKHAND MADHYA

PRADESH ORISSA RAJASTHAN UTTAR

PRADESH CHHATTISGARH All India


< 3 days 73% 92% 93% 0 54% 51% 71% 84% 94% 95% 46% 63% 86% 0 76% 72%

>3-7 days 25% 8% 6% 0 35% 10% 17% 7% 5% 3% 31% 24% 11% 0 18% 12%

>7-14 days 1% 0% 1% 0 4% 7% 4% 2% 0% 1% 6% 2% 3% 0 2% 3%

>14-30 days 1% 0% 0% 0 2% 21% 3% 1% 0% 0% 1% 1% 0% 0 1% 6%

Others 0% 0% 0% 0 5% 10% 5% 6% 1% 1% 16% 10% 0% 0 3% 7%

Sample 699 138 671 0 341 517 216 491 460 310 416 624 270 0 3073 2080

The program duration was generally less than 3 days. Only in case of Madhya Pradesh

and Uttar Pradesh, we observed a higher percentage underwent training for a period of

14-30 days. This can be attributed to the fact that ISMW had launched the pilot of its

formal program in M.P. and hence a lot of experimental camps and awareness sessions

were held and since last 5 yrs their programs have been going on in various parts on an

ongoing basis. In Uttar Pradesh, the ISMW program was spaced over a longer period and

hence such a response was observed.

Table 41: OPINION ON THE DURATION OF THE PROGRAM BIHAR JHARKHAND MADHYA

PRADESH ORISSA RAJASTHAN UTTAR

PRADESH CHHATTISGARH ALL INDIA


Too Short 26% 33% 28% 0 11% 18% 63% 62% 17% 23% 26% 43% 21% 0 26% 38%

Adequate 72% 64% 67% 0 82% 73% 25% 36% 77% 75% 54% 49% 76% 0 67% 57%

Lengthy 1% 0% 1% 0 5% 6% 5% 1% 1% 1% 5% 3% 1% 0 2% 3%


UN Focus states

Page 75 of 108

BIHAR JHARKHAND MADHYA PRADESH

ORISSA RAJASTHAN UTTAR PRADESH

CHHATTISGARH ALL INDIA


Do not know 1% 3% 3% 0 3% 3% 7% 1% 5% 1% 15% 5% 2% 0 5% 3%

Sample 699 138 671 0 341 517 216 491 460 310 416 624 270 0 3073 2080

Although sixty percent of the respondents found the program duration to be adequate but

about a third of the respondents opined that the duration was short. This response stems

from the fact that the participants wanted repeat program (as observed in qualitative data)

and also they wanted further detailed inputs, especially on savings and loans.

It is obvious that such FLP have generated demand for further knowledge on financial

matters among the participants. They are mostly looking for short-duration intermittent

programs, which will enable them to re-capitulate and also learn new concepts at their

own pace of understanding and retaining it.

Table 42: SATISFACTION FROM THE FLP ATTENDED BIHAR JHARKHAN

D MADHYA PRADESH

ORISSA RAJASTHAN

UTTAR PRADESH

CHHATTISGARH

All INDIA


Fully Satisfied

73% 62% 60% 0 78% 70% 39% 27% 67% 77% 55% 67% 56% 0 63% 60%

To Some Extent

21% 19% 36% 0 19% 20% 57% 67% 29% 18% 36% 28% 29% 0 30% 33%

Not Satisfied

6% 19% 4% 0 4% 9% 4% 6% 4% 5% 9% 5% 15% 0 6% 7%

Sample 699 138 671 0 341 517 216 491 460 310 416 624 270 0 3073

2080

The low levels of satisfaction in Orissa should be viewed in context of 4.28. A majority

of respondents said that the content covered was too short and a correspondingly high

majority remarked that they were only satisfied to some extent. These figures clearly

indicate that the program in Orissa covered much lesser content and didn‟t provide in

depth knowledge on financial literacy which explains the low levels of satisfaction. As

discussed earlier, this also points out the lacunae in the Orissa formal and informal

programs. The formal ISMW program was delivered in a much contracted form and the

respondents in Orissa were already linked to SHGs before their formal and informal

programs. Their levels of awareness being relatively higher, they aspired for detailed

knowledge about FL and were not contended with what was actually delivered.

In terms of “Not satisfied” we see a particularly high percentage of 19% in formal

programs of Bihar. This is also validated by our previous data on savings and credit

where the content covered on these and the consequent awareness enhancement was low

in formal program respondents of Bihar. This can be attributed to the fact that the formal

program covered in Bihar was a RBI initiative. The program had covered the programs

superficially and was more focused on financial inclusion.

On observing table 41 and 42 collectively, we observe that in U.P. a high percentage of

respondents marked their formal program as too short (43%) and still a high percentage

say that they were “fully satisfied” from the program (67%). The reason being the formal


UN Focus states

Page 76 of 108

program there was pretty effective and hence a lot of people though satisfied by what was

covered currently in the program, were enthusiastic about learning more and hence half

of them remarked that the program was too short and other half as adequate.

GENDER WISE ANALYSIS

Table 43: HEAD OF THE FAMILY BIHAR CHHATTIS

GARH JHARKHA

ND MADHYA

PRADESH ORISSA RAJASTH

AN UTTAR

PRADESH ALL INDIA

Femal

e

Male

Femal

e

Male

Femal

e

Male

Femal

e

Male

Femal

e

Male

Femal

e

Male

Femal

e

Male

Femal

e

Male

Are you the head of the family

38%

78%

22%

78%

35%

71%

26%

63%

20%

83%

25%

75%

32%

75%

29%

76%

Sample 744 158 235 65 600 275 875 30 463 244 706 183 706 353 4329

1308

About 32% of the female respondents remarked that they were the head of the family as

compared to a high of 75% among the male respondents.

Table 44: FINANCIAL DECISION MAKER IN THE HOUSE BIHAR JHARKHAN

D MADHYA PRADESH

ORISSA RAJASTHAN

UTTAR PRADESH

CHHATTISGARH

ALL INDIA

FEMALE

MALE

FEMALE

MALE

FEMALE

MALE

FEMALE

MALE

FEMALE

MALE

FEMALE

MALE

FEMALE

MALE

FEMALE

MALE

SELF

28% 66% 15% 49% 19% 40% 16% 48% 18% 49% 27% 58% 17% 75% 21% 55%

SPOUSE

36% 10% 17% 15% 24% 20% 42% 19% 22% 14% 25% 3% 35% 11% 27% 12%

BOTH

29% 9% 59% 16% 46% 10% 33% 27% 42% 20% 32% 15% 46% 6% 41% 17%

OTHERS

7% 14% 9% 19% 11% 30% 8% 6% 18% 17% 16% 24% 2% 8% 11% 17%

Sample

744 158 600 275 875 30 463 244 706 183 706 353 235 65 4329 1308

In the above table if we sum up the two rows of decision taken by “self” and”both” for

the female respondents, we observe that on an average about 60% female respondents

took part in Financial decision making. Particularly high percentage female respondents

(around 53%) were observed to be taking decisions in the states of Chhattisgarh and

Jharkhand, primarily because certain tribal belts were surveyed here and the females are

more empowered amongst tribals.

Also, in the above table for decision taken by “both” if we compare the figures of female

versus male respondents in each of the states, it was observed that the collective financial

decision making is higher (almost double) where females have undergone the program as

compared to males. This effectively brings out the fact that, female respondents who had

undergone a FLP were more empowered in financial decision making as compared to

those who had not undergone a program.


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Page 77 of 108

Table 45: PERCENTAGE OF FEMALE RESPONDENTS WHO FELT EMPOWERED AFTER

THE FLP BIHAR CHHATTISG

ARH JHARKHAN

D MADHYA PRADESH

ORISSA RAJASTHAN

UTTAR PRADESH

ALL INDIA

Yes I feel Empowered

62% 74% 58% 66% 54% 61% 67% 63%

I was already involved in decision making

12% 9% 19% 11% 18% 13% 12% 14%

Total Females 723 220 529 833 463 605 698 4071

Table 46: FLP WISE EMPOWERMENT OF FEMALE RESPONDENTS BIHAR CHHATTIS

GARH JHARKH

AND MADHY

A PRADE

SH

ORISSA RAJASTHAN

UTTAR PRADE

SH

ALL INDIA

IF F IF F IF F IF F IF F IF F IF F Informal

Formal

Yes I feel Empowered

62%

61%

74%

0 58%

0 67%

65%

55%

53%

71%

51%

60%

73%

63% 62%

I was already involved in decision making

11%

24%

9% 0 19%

0 11%

11%

19%

18%

13%

14%

19%

6%

14% 12%

Total Female Participants

641

82 220

529

332

501

154

309

318

287

329

369

2523 1548

The above two tables 45 and 46, indicate that a high percentage of female respondents

felt empowered after attending their respective FLPs. There is some indication that the

formal FL programs had same impact (63%) as compared to the informal programs

(60%).


UN Focus states

Page 78 of 108

5. Conclusion and Recommendations

The study on the assessment of the study of financial literacy programs in seven UNDAF

states was conducted using both primary and secondary research methods. Given the

objective of the study to analyze the perception of the current literacy programs among

the participants, the primary survey was done to understand the content covered under

such programs, the ensuing knowledge gained by them and its effectiveness in terms of

enhanced usage. The secondary research method was used to collate the current programs

in each state and touching briefly in each of them, the content covered, pedagogy,

duration, etc.

Data Collection

The primary research was conducted mainly through a questionnaire which was pre-

tested in the field. The questionnaire was mainly translated into Hindi and Oriya to

facilitate the data collection. A training of trainers was conducted first with State Team

Leaders, who in turn had trained the state teams in data collection.

The choice of districts for data collection was arrived though discussion with RBI and

NABARD in terms of financial literacy programs currently in practice. Also data was

collected from SHGs members, FLCCs participants and MFI customers, etc.

The collected data was manually fed into data sheet and further analysis was done using

data objects. The analysis was mostly done comparing formal and informal programs

across various parameters in each state. The formal were those programs which used

structured training programs and methods while the informal included MFI customers,

FLCC participants and SHG capacity building, etc.

The secondary data was collected through discussion with promoting agencies like RBI,

NABARD and donor agencies as well as in-depth discussion with implementing

agencies. Relevant materials for the training programs were also seen and analysed.

Findings

Sample: The sample primarily consists of women (70%) who had undergone financial

literacy programs. Moreover, the majority of the respondents belonged to unbanked and

poor classes, who have less access to financial institutions and their services. These were

mainly from SC, ST and minority (80%) categories.

This poses a question that biasness towards women for financial literacy programs may

not be right approach to financial inclusion. The reason is twofold. First, mostly the

financial decision making is taken by the men and secondly they do transact more with


UN Focus states

Page 79 of 108

outside, including financial institutions. For making poor households financially

included, equal importance should be given to training of men on financial literacy and

this could lead to a greater impact.

Content Covered: There are several aspects to coverage of content in the both types of

programs and is enumerated below:

Topic Covered: Barring a few exceptions, across all states in the formal programs, it was

found that literacy programs has focused in these four aspects, namely budgeting,

savings, credit and insurance. In the informal programs, the imparted knowledge was

highly focused. While FLCCs in their half-day workshop, seminars and walk-in-

interviews, dealt mostly with banking products, the MFIs were highly focused on loans.

On the other hand, SHG capacity building programs focused mainly on savings and credit

and sometimes on budgeting and insurance.

Depth of the content: Within each of the topics, knowledge was imparted on financial

institutions providing services and sometimes on the products offered. While recall and

understanding of such aspects were high across all the states, thereby, indicating the

thrust on these aspects in the formal training programs. On the other hand, based on

institution, training content in informal programs was more focused on their core area

i.e., in case of MFI, only focused on credit and less content on insurance

However, the more interesting feature on depth is that coverage of complex products and

their features for a higher understanding in the same was lacking across both formal and

informal programs. For example, knowledge about FD, RD and no frill accounts was

much less than ordinary savings accounts and similar trend is seen for both credit and

insurance. In the latter two, knowledge imparted on technical features of product like

mortgage, premium, maturity, etc. was lower and the retention was much less.

This indicates that there is scope of making the programs more comprehensive and in-

depth knowledge of technical features can be incorporated in the future programs.

Pedagogy: Across both formal and informal programs in all the states, lecture method

was used profusely to impart training programs and the recall of the same was highest.

However, the use of different methodologies was higher in the formal programs than

informal ones, in almost all states. In the formal programs, video, street play, role play,

stories, chart, posters was used (recall more than 40%). In the informal programs, it was

more of stories, songs, posters and charts. The tools used in SHG capacity building

programs has been reflected in the informal programs.

While lecture method seems to be mostly used to impart knowledge, it is also true that

audio-visual medium of training can supplement the training process and makes it more

effective.


UN Focus states

Page 80 of 108

Perception: The about the various program was also captured on the duration, adequacy,

requirement of further training, etc. This would reflect the need for such training

programs and how these could be further customized.

Satisfaction from the program: While 70% of the respondents from formal training

programs were fully satisfied, it was bit lower for those undergone some form of training

in informal ones. Moreover, on an average about 30% of the respondents were either not

fully satisfied or dissatisfied. Hence, there is case for looking into duration and content of

the program as per the need of the customers. One obvious reason for higher level of

dissatisfaction among informal trainees could be that they are more exposed to financial

transactions (MFIs and SHGs) and have the urge to know more about the same.

Duration: Except MP, the duration of the program across all the states was on less than

three days. While 70% of the respondents opined that duration was adequate, about 30%

of them also indicated that the program was too short. Infact, in the states where the

formal programs were relatively more appreciated, duration was found to be less than

adequate. This leads to two major inferences. One, people were looking for another round

of programs, expressing dissatisfaction on the current level of knowledge imparted and

second, too many things were clubbed in the training program for them to comprehend.

The former is another indication of demand (as in UP, Bihar and Rajasthan).

Interestingly, very few respondents found the program to be lengthy or had some level of

ambiguity.

Willingness to attend another program: Except for Orissa, both in the case of formal and

informal programs, the willingness to attend program was high (> 90%). It reflects two

things, namely, there is demand and interest created through such programs and

households do want more about financial services. This is true for people who have

responded as having full satisfaction from the program. However, there is a perceived

gap in satisfaction level of about one-fourth of the respondents, some of them also

indicated to undergo future training programs. This indicates that these persons also

found the programs to be effective and want to know further and perhaps in depth. This is

particularly true for Orissa state.

Formal versus informal programs

Except for Chhattisgarh and Jharkhand, there has been attempt to promote structured

formal training programs in rest of the states. In the former two states, the process has

just started. Some of the findings when the comparison is being done are given below:

1. The duration of the formal programs was higher (about 3 days) in comparison to

informal (1/2 to 1 day)

2. Varied methods were used in the training programs in formal in comparison to

informal training programs

3. Many of the participants in the formal training programs were members of SHGs,

who may have undergone some training beforehand


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4. The content covered was higher for formal programs were than informal ones

across each state

5. In terms of knowledge retention and awareness of the participants is seen, the

informal trainees were at par with their formal counterparts, if not more in some

aspects. This is possibly due to more practical exposure to financial transactions

in SHGs and MFIs. However, the formal participants had more knowledge about

bank product and services than informal participants.

6. The repeat programs were more in the informal category, especially in the SHG

capacity building than in formal ones. In fact in UP and Bihar, the mandate was

beyond financial literacy in formal programs and the process of opening of bank

accounts, etc. was also facilitated. In these states, willingness for further training

is higher.

Analysis across states

1. There has been a striking difference observed in ISMW conducted formal

programs in states of Rajasthan, UP, MP, Bihar and Orissa. In UP and MP, there

were element of handholding done for opening of accounts, coupled with some

repeat programs, especially in MP and use of more community trainers. Even

though the program in Orissa and Rajasthan was good, it terms of its

effectiveness, it is lower than MP and UP because of the reasons outlined.

2. Informal program in Rajasthan have shown better results in all aspects than

informal programs in other states. The informal programs considered were mostly

SHG capacity building programs and this could be attributed to the supporting

organizations, like PEDO and IBTADA in Rajasthan which are recognized for

their work in micro-finance operations and building SHG and their Federations.

They are also known to be good training institutions by NABARD in their

respective districts.

3. Despite linkages with banks and SHGs has been demonstrated after the FLP

program in all states, still households borrow from moneylenders indicating that

the credit demand is not being met from former sources.

4. In Bihar, the RBI program aimed at financial inclusion and followed up linkage

with banks. But the phenomena of taking loans from moneylenders exist and

procedural knowledge about opening and operating the accounts is low. This also

indicates that financial inclusion without adequate knowledge back up may not be

that effective than what has been observed in UP where adequate inputs on the

same were imparted.

Strategy to be followed in Financial Literacy Programs

The following strategy is recommended for both enhanced financial literacy and

financial inclusion in these states as well as for the country. These are


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1. Mass based approach: The focus should shift from SHG centric financial

literacy programs to a mass based approach to include more financially

excluded households.

2. Use of more SHG and NABARD Platform: The structured form of program

can be delivered through SHGs and NABARD platform, which will help in

higher outreach than a few programs which are being conducted. While SHGs

are more focused on credit and bank linkages in their capacity building

programs, the structured program can broaden the knowledge of members in

other services and about institutions. The resources of NABARD could be

used to conduct financial literacy programs on a greater scale using a more

structured approach.

3. Staggered approach to financial literacy training should be adopted: Given the

literacy level of the participants, it would be more appropriate to conduct the

same training in a phased manner for higher effectiveness. This is also a

feedback from the field and also is reflected in the low absorption by the

current participants.

4. Complementarity of Financial Literacy and Financial Inclusion: The

effectiveness of financial literacy program can be higher when coupled with

financial inclusion program as exhibited in some states as well as in the

informal cases (SHGs and MFIs). On the other hand, either financial inclusion

or literacy program do not serve the purpose. In the former, the members

remain inactive after a point of time while in only literacy programs, there are

sometimes problem of access and lack of practical exposure.

5. Use of combination of lecture cum audio-visual methods: This is again linked

to literacy level of the participants. While it is useful to give concepts through

lecture, it would be more prudent to develop content using audio-visual

methods, where both participation and attention is higher.

6. Monitoring and Follow-up to financial literacy programs: It is also

recommended that monitoring of the quality of the program during training

and follow-up, in form of summarized re-collection of training and helping

them in opening accounts. The latter is observed in the informal programs

such SHG capacity building and MFIs

7. Use of local or community trainers: Preferably, the use of local trainers can be

suggested for making the training program more effective as has been

exhibited in the results in UP. This is because the training could be given in

local dialect and participants feel more at ease.


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Recommendations

For Policy Makers, the following recommendations are suggested:

1. Promote the concept of financial literacy as an integral part of financial

inclusion: This policy when implemented will give better results not only in

inclusion but enhanced frequent usage in future. Secondly, it would catalyze

the process in banks towards an integrated approach rather than financial

inclusion only.

For UNDP, the following recommendations are being made to support the financial

literacy program:

1. Development of a more comprehensive and staggered financial literacy

program: The comprehensiveness of program can be done through

introduction of technicalities of financial services in the training. This is

beyond the knowledge of products and institutions. This might help in better

decision making by individual households. The phasing of programs should

be tried and developed. For both of these, it can involve the current financial

literacy service providers and specialized institutions such as IFMR, The

Livelihood School, IRMAs.

2. Carrying out Pilots on the new Program: The pilot of the new curriculum and

its phasing should be done to understand the additional cost incurred as well

as its effectiveness in order to develop a more pragmatic scaling up strategy.

This can be done in existing two states such as Rajasthan and Uttar Pradesh

3. Support the capacity building initiatives or training of trainers: This is a key to

effectiveness of financial literacy training programs. Even with the current

program, the element of monitoring the quality of the existing programs can

be supported by UNDP for building a process which can be adopted

For Training Institutions, the following recommendations are suggested:

1. Development of more in-depth program: The current program focuses on

raising general awareness but is sometimes inadequate for building the

necessary confidence to deal with institutions and their complex product and

services, particularly in savings and insurance. The technical aspects of

financial services should be emphasized and covered in the program.

2. Hand-holding and Monitoring during and post training: Since the most

effective mode is ToT, there is need for developing a process of monitoring

of program, at least in the initial stages so that dilution of program is reduced.

Hand-holding of the staff at the grass root is highly desirable for improving

the effectiveness of financial literacy programs

3. Helping in design of programs as an inclusive part of SHG Capacity Building

and NABARD programs: The training institutions can also be involved in

designing the mentioned programs so that outreach could be higher and more

effective.


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For Implementers, the following recommendations are suggested:

1. Recommend local people for ToT: The NGOs or any other implementing

agency should find out appropriate personnel for ToT with some background

of working in financial institution or a MFI and he/she should be conversant

with local dialect.

2. Handholding the trainees after program: The key to success of financial

literacy programs is not only generation of awareness but also sustained

demonstration of financial inclusion. This should be adopted as a strategy and

with possible incentives to the trainers.

The above-mentioned approach of combination of financial literacy and inclusion would

involve time, manpower and monetary resources. The extent to which this could be done

has to be further examined for a more detailed manner for formulating a revised financial

literacy program.


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Annexure: Financial Literacy Survey Questionnaire

Part 0

Form Serial: Date :

(State / District / Block / Location S. No.)

Complete Address of the Respondent: Rural/ Semi-Urban/ Urban

Village/ Ward No:

Block:

District: State:

Pin code:

Mobile No. :

Investigator Code (Please enter the code alloted to you)

(To be filled by Investigator) Name

Signature

Supervisor Code (Please enter the code alloted to you)

(To be filled by Supervisor) Name

Signature

Verified and approved by Code (Please enter the code alloted to you)

(To be filled by Chief Investigator) Name

Signature

The following section has to be filled by the Data Entry Team

Data Entry Date:

Item of work: Team Member

Code Name Signature

Codified by :

Verified by :

Data entry by :

Quality check :


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Part 1

1. Profile

1.1 Full name of respondent (with Surname)

1.2 Caste BC (1) SC (2)

ST (3) Gen (4)

1.3 Religion Minority (1 ) Others (2 )

1.4 Sex Female =0 Male=1

1.5 Age group

<18 (1) 18-34 (2)

35-59(3) = >60( 4)

1.6 Marital Status

Single(0) Married(1) Widow or Separated(2)

1.7 Education

PG & above (1)

Graduate (2)

Class12 (3)

Matriculation-10th (4)

High School (6th to 9

th) (5)

Primary (till 5th) (6)

Illiterate (7)

Technical (8)

1.8 Total number of members in family

(HH)

1.9 Are you the head of the family No=0 Yes=1

1.10 Type of farmer

Landless (1)

Small (up to 1 Acre) (2)

Marginal (1 to 2 Acre) (3)

Medium (2 to 5 Acre) (4)

Large Farmer (>5 Acre) (5)

1.11 Health

Physically Challenged (1)

HIV / AIDS (2)

Other (3)

1.12 NREGS Enrollment No=0 Yes=1

1.13 Membership with PACS / Cooperative No=0 Yes=1

1.14 Membership with SHGs No=0 Yes=1

1.15 Availing services from MFI No=0 Yes=1

1.16 Do you have a Bank account No=0 Yes=1

1.17 Do you have an insurance policy No=0 Yes=1

2. House Type

a. Kuccha (1)

b. Kucca-Pucca (wall or roof is kucha) (2)

c. Pucca (3)


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3. Sources of income

a. Main source of income: (Tick the appropriate code in the following table)

b. Other sources of income: (For this question, answers could be multiple. So tick codes

for all responses in the appropriate box)

4. What is your household annual income? (Family annual income means total income of all

earning

family members from all sources in a year)

1. Extremely Poor (=and <Rs30,000 per annum) ( 1 )

2. Poor ( Rs. 30,001- Rs.40,000per annum) ( 2 )

3. Marginal poor ( Rs. 40,001- Rs. 60,000per annum) ( 3 )

4. Household income between Rs 60,001- Rs. 75,000per annum ( 4 )

5. Household income above Rs.75,000 per annum ( 5 )

5. Who takes financial decisions in your house? a. Self (1)

b. Spouse (2)

c. Both self and spouse (3)

d. Others (4)

Part 2

Q.6 – Q.12 are Financial Literacy Programme Related Questions

6. What Financial Literacy program have you attended in last 5 years? (For this question, answers could be multiple. So tick codes for all responses in the

appropriate box)

1) Formal Financial Literacy program

2) Credit Counselling by banks

3) MFI counselling

Source Code Source Code

Cultivation 1 Allied activities

(Dairy/ Poultry etc)

4

Wage Labour 2 Salaried job 5

Non Farm activities

(Small enterprise/ shop keeper etc)

3 Remittances

( transfer of money)

6

Source Code Source Code

Cultivation 1 Allied activities(Dairy/

Poultry etc)

4

Wage Labour 2 Salaried job 5

Non Farm activities( Small

enterprise/ shop keeper etc)

3 Remittances

( transfer of money)

6

Not Applicable (No other

sources of income)

0


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4) SHG capacity building

5) Don‟t remember the organization or name

6) Others (Please specify) …………

7) None

Please specify the name of the programme and the organization that conducted it

7. In your FL training programme, which were the different financial Institutions

(formal & informal) you were taught about (answers could be multiple. So tick codes

for all responses in the appropriate box)

a. Grameen Bank (1)

b. Commercial Bank (2)

c. Cooperative (3)

d. Company (like Sahara etc) (4)

e. Chit fund (5)

f. MFI (6)

g. SHG / JLG (7)

h. Post Office (8)

i. Insurance company (9)

j. I Don‟t Know (10)

8. Which tools were useful in your learning for Financial Literacy training programme?

(Tick the

appropriate option)

S.N Training Tools Useful(1) Not

useful(0)

8.1 Video

8.2 Street Play

8.3 Role Play

8.4 Stories

8.5 Posters

8.6 Songs

8.7 Flash Chart

8.8 Lecture

8.9 Games

8.10 Exposure Visit

9.1 What was the duration of your programme.

a) < 3 days (1)

b) > 3 – 7 days (2)

c) > 7 – 14 days (3)


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d) >14 days -30days (4)

e) Others (Please specify) ……. (5)

9.2 Give your opinion on the duration of the programme.(Tick the appropriate option)

a) Too short (1)

b) Adequate (2)

c) Lengthy (3)

d) Do not know(4)

10. How many days training duration would you consider sufficient for FL training

Programme? (Tick the appropriate option)

a) < 3 days (1)

b) > 3 – 7 days (2)

c) > 7 – 14 days (3)

d) >14 days -30days (4)

e) Others (Please specify) ……. (5)

f) Don‟t Know

11. Were you satisfied with your Financial Literacy Programme?

a) Fully satisfied (1)

b) Satisfied to some extent (2)

c) Not satisfied (3)

12. Would you like to have the Financial Literacy Programme again?

No (0) Yes (1)

Q. 13- Q.16 are General Behavioral Questions

13. Do you keep a note of your income and/or expenditures? (Tick the appropriate code)

a) No, I am not able to keep track of my expenditures and income (1)

b) Yes, I have a broad idea of my expenditures and earnings (2)

c) Yes, I keep a written record of important expenses and earnings (3)

14. Generally, how much is your expenditure in relation to your earning? (Per month or per

week

depending on the frequency of their income) (Tick the appropriate code)

a) Expenditure is somewhat less than my earnings (1)

b) Expenditure is almost same as my earning (2)

c) Expenditure on day to day expenses is generally more than earning (3)

15. If there is a deficit, how do you meet your deficit? (Tick the appropriate code)

a. Cut down expenses which is not of much importance (1)

b. Take out money from savings (2)

c. Borrow money from friends/ relatives (with no / less interest rate) (3)

d. Borrow from moneylenders / friends (with high interest rate) (4)

e. Loan from SHGs /MFI (5)

f. Loan from Bank (6)


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16. If there is surplus, what do you do with the surplus? (Tick the appropriate code)

a. I spent for additional requirement like clothes, household stuffs etc.(1)

b. I buy some assets like jewelry, pump set etc (2)

c. I use it as working capital for small enterprise activity (3)

d. I save for future requirement (4)

e. Don‟t Know (5)

Q.17- Q.19 are Budget Related Questions

17. Did the Financial Literacy program (formal/informal) teach you anything on budget

and

planning? (Tick the appropriate code)

No (0) Yes (1)

If No, leave Q 18, 19

If Yes,

18. Did your Financial Literacy (FL) training teach you any of the following?

a) Preparation of HH budgeting and reduction of avoidable expenses (1)

b) Planning for emergency (2)

d) Others (Please specify) …………(4)

19. Has the programme helped you to manage your expenses in a better and a planned way?

No (0) Yes (1)

Q.20 to Q. 28 are Saving Related Questions

20. Do you save? (Tick the appropriate code)

a) Yes, I save purposefully and regularly (1)

b) Yes, I save whenever I have leftover (2)

c) No, I am not able to save (my income is too less) (3)

d) No, I do not have a habit of saving (4)

21. In your financial literacy programme, did they teach you anything on the importance

and purpose of savings? (For this question, answers could be multiple. So tick codes for all

responses in

the appropriate box)

a) Save To meet additional expenses e.g. household stuffs, clothing, festivals, marriage,

birth etc (1)

b) To repay debt

(2)

c) To purchase assets e.g. land, livestock, tractor, jewelry

(3)

d) For children future and education

(4)

e) For future emergency requirements

(5)


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f) To invest in business (small enterprise requirement)

g) To get interest income (includes SHG saving)

(6)

h) To have a secured future and present

(7)

i) Others (Please specify) ……………..

( 8)

j) Didn‟t teach anything on benefits of savings

22. Which of the following financial institutions you are aware for saving? (Tick the

appropriate code)

Financial Institutions No (0) Yes, but I don’t know

the interest rate on it (1)

Yes, and I also know the

interest rate on it (2)

Bank

SHG/JLG/ CIG

Post Office

Companies like Sahara

etc

PACS (Cooperative)

Chit Fund

23. Did the Financial training programme teach you about saving in any of these

institutions?

a. Bank No (0) Yes (1) Not applicable (2)

b. SHG/JLG/ CIG No (0) Yes (1) Not applicable (2)

c. Post Office No (0) Yes (1) Not applicable (2)

d. Companies like Sahara No(0) Yes (1) Not applicable (2)

e. PACS/ Co operatives No (0) Yes (1) Not applicable (2)

f. Chit Fund No (0) Yes (1) Not applicable (2)

If all options in the above question-- Q.23 are ―No‖ then skip Q 24 and Q 25


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24. Did you start saving in any of the following financial institutions after the financial

literacy

programme? (Tick the appropriate code)

No(0) Yes(1) I was already saving in it even before

the financial literacy programme (2)

Bank

SHG/JLG/ CIG

Post Office

Companies Like

Sahara etc

PACS (Cooperative)

Chit Fund

25. Did the financial training programme teach you about the operational procedure and

documentation of saving account? (Tick the appropriate code)

No (0) Yes (1)

25.1 Opening a savings/deposit account

(Id Proof, minimum balance required, Authorization etc)

11 12

25.2 Operating a savings/deposit account

(like reading a Passbook, withdrawal and deposit etc)

21 22

25.3 Nomination Facility 31 32

26. Are you confident about opening and operating a saving/deposit account?

Very Confident Less confident Don’t know

26.1 Opening a savings/deposit account 11 12 13

26.2 Operating a savings/deposit account 21 22 23

27. Do you know about different types of saving accounts?

Type of account I understand it I Use it Was it Covered in

Financial Literacy

Programme?

27.1 Savings A/C No (0) Yes (1) No (0) Yes (1) No (0) Yes (1)

27.2 Current A/C No (0) Yes (1) No (0) Yes (1) No (0) Yes (1)

27.3 Fixed Deposit A/C No (0) Yes (1) No (0) Yes (1) No (0) Yes (1)

27.4 Recurring Deposit A/C No (0) Yes (1) No (0) Yes (1) No (0) Yes (1)

27.5 No Frill (zero balance

account)

No (0) Yes (1) No (0) Yes (1) No (0) Yes (1)


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28. What would you like to know on saving from Financial Literacy(FL) training

programme?

a. To know more on saving products (RD, FD, interest rates etc) and its benefits

b. To know more about opening a savings account

c. To know more on operating an account and documentation involved like withdrawal

form, saving form, passbook etc

d. Others

(specify)……………………………………………………………………………………

………………………………………………………………………………………………

…………….

Q.29 to Q.33 are Credit Related Questions

29. After the Financial literacy programme, did you borrow money from any of the

following? (For this question, answers could be multiple. So tick codes for all responses in the

appropriate box)

a) SHG (1) b) MFI

(2)

c) Bank (3) d) Cooperative/PACS

(4)

e) Moneylender (with high interest) (5) f) Local Traders

(6)

g) Friends/Relatives (with no / less interest) (7) h) Company (8)

i) Insurance company (9) j) I have never borrowed money

(10)

k) I had already borrowed money before the financial training program

30. In your financial training programme were you taught about taking a loan for

productive purposes like buying assets- livestock, land, pump set etc, or capital needs for small

enterprise

1) No

2) Yes

31. Do you know about following loan features?

loan features I understand it Was it covered in Financial

Literacy Programme?

31.1 Do you know the interest

rates available on any of

these institutions / source:

Bank

SHG

MFI

Companies like

Sahara etc

No(0) Yes(1)

No(0) Yes(1)

No(0) Yes(1)

No(0) Yes(1)

No(0) Yes(1)

No(0) Yes(1)

No(0) Yes(1)

No(0) Yes(1)


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31.2 Are you aware of the

procedure and

documentation for taking a

loan from the following

institutions

Bank

SHG

MFI

Companies like

Sahara etc

No(0) Yes(1)

No(0) Yes(1)

No(0) Yes(1)

No(0) Yes(1)

No(0) Yes(1)

No(0) Yes(1)

No(0) Yes(1)

No(0) Yes(1)

31.3 Are you aware of different

types of interest rates-

Compound versus simple

interest (Compound

interest is more expensive

than simple interest)?

No(0) Yes(1) No(0) Yes(1)

31.4 Do you know different

methods o f interest

calculation- diminishing

balance interest rate is

cheaper than flat rate?


31.5 Do you know about Loan

Processing Fee (LPF)


31.6 Do you know

Surety/Mortgage/Collateral


31.7 Given your income and

expenditure, do you know

how to structure your loan

repayment (installments)?

(Self loan appraisal-

monthly repayment should

not be more than 30% of

monthly income)


31.8 Do you know the

cost/benefit of closing your

loan before the due date?


32. Do you know about different loan products?

Type of loan products I am aware Was it covered in Financial

Literacy Programme

32.1 Personal loan No (0) Yes (1) No (0) Yes (1)

32.2 Vehicle loan No (0) Yes (1) No (0) Yes (1)

32.3 Education loan No (0) Yes (1) No (0) Yes (1)

32.4 Non farm loan (Kirana

shop, Business etc)

No (0) Yes (1) No (0) Yes (1)


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32.5 Short term and long

agriculture loan(fertilizer,

seeds)

No (0) Yes (1) No (0) Yes (1)

32.6 Agriculture allied activity

loan(Dairy, Poultry, etc)

No (0) Yes (1) No (0) Yes (1)

33. What would you like to know on borrowing from Financial Literacy (FL) training

programme?

a. From what institutions can I take a cheap loan (1)

b. How to take a loan from bank (2)

c. I want to know about different loan products (3)

d. Others (specify)………….. (4)

Q.34- Q.37 are Insurance related Questions

34. Are you aware of the following insurance products?

Type of Insurance

Product

I understand it

(I know how it

works)

I Use it Was it covered

under Financial

Literacy?

34.1 Life Insurance No (0) Yes (1) No (0) Yes (1) No (0) Yes (1)

34.2 Health Insurance No (0) Yes (1) No (0) Yes (1) No (0) Yes (1)

34.3 Asset Insurance No (0) Yes (1) No (0) Yes (1) No (0) Yes (1)

34.4 Cattle Insurance No (0) Yes (1) No (0) Yes (1) No (0) Yes (1)

34.5 Micro enterprise

Insurance


34.6 Any other (crop/

weather indexed

etc)


Note: In the above question, for the insurance types that were covered in FL, answer the

following question-

35. Did you take any of the following insurance after the Financial Literacy Programme?

(Tick the

appropriate code)


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No, I didn’t

take it (0)

Yes, I took it

(1)

I already had it before the

Financial Literacy Programme (2)

35.1 Life Insurance

35.2 Health Insurance

35.3 Asset Insurance

35.4 Cattle Insurance

35.5 Micro enterprise

Insurance

35.6 Any other (crop/

weather indexed etc)

36. What do you understand by the following terms?

I understand it Don’t

Know

Was it Covered in Financial Literacy

Programme?

36.1 Why do you need

insurance?

11 12 No (0) Yes (1)

36.2 What do you mean

by Premium

(Payment of

installments against

coverage)

21 22 No (0) Yes (1)

36.3 How much will the

insurance company

pay if the event

occurs i.e. what is

the amount of Risk

Cover?

31 32 No (0) Yes (1)

36.4 Are you aware of

the Terms and

condition of risk

cover- when your

claim can be

rejected?

41 42 No (0) Yes (1)


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36.5 What are the

benefits on maturity

of insurance

policy?

51 52 No (0) Yes (1)

37. What more would you like to know on insurance from Financial Literacy (FL) training

programme?

1) To know more about different insurance product and benefit

2) To know more on how to take an insurance

3) To know more on terms and conditions

4) Where to take an insurance from (to know more about institution for taking insurance)

5) Others (specify)…………..

38. What are the things you would like to learn through a FL training programme? (don’t

prompt answers- please make a note of anything that they would like to learn about)

1) How and where to open an account

2) How and where can I keep my savings

3) How and where can I get a loan

4) How and where can I get an insurance

5) Others (specify) --------------

39. Please mention 2 important learnings from the training programme which you found

useful and applied in your daily life.

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. IF THE RESPONDENT IS FEMALE THEN ASK—

40 After undergoing the FL Training programme, has your status in the family in terms of

participating in financial decision making improved? (Do you feel more empowered and better

off after the FL Training programme)

1) Yes, I enjoy a better status in my family now

2) I was already part of financial decision making in the family even before the FL Training

programme

3) No, I don‟t feel any change


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41. The awareness from the financial literacy program has given greater confidence in various

aspects of finance,(dealing with bank/ other financial institutions; managing one‟s accounts or

family budget; deciding on utilization of money)

1) No 2) Yes

42. Do you feel more empowered to make choices in matter of saving, institutions for availing

credit, insurance, utilization of money, etc. after undergoing the financial literacy program?

1) No 2) Yes

Any other general comments/ observations

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………


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Qualitative Sheet- to be filled by investigators at the end of each day

General Observations from the survey

Specific to a FL Training Programme

Name of the Programme: --------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

1. Overall Program: Respondents praise and willingness for further program, Did they like

the programme OR Their discomfort or non-utility of the program

2. Content- any preference on what they want to learn or what they liked. What were the

topics they were excited to learn about? Or any views on content for a future

programme(if there is any response of that type)

3. What was the focus of the programme (if there was any specific area of focus) and was it

useful and were they excited in learning about it?

4. Was there something which the respondents didn‟t find effective or found it boring? And

why was it ineffective- the content was not proper or the pedagogy was poor, what was

the reason?

5. Which Pedagogy was more easy to understand? Which tools were effective and which

were boring? (if there is any response of that type)

6. Was the duration sufficient for training or did they express any view on duration? Were

they comfortable with the timings, did they give any suggestions on it? (if there is any

response of that type)


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7. Did the respondents remember or understand the training given or did they want to have a

revision of it?

8. Did the respondents show an interest in opening bank accounts or taking loans or

insurance etc after getting educated through the FL training programme? Was there a

noticeable behaviour change after the FL training programme? Have they applied any of

the learnings from the FL training programme in use in their daily life?

9. For the female respondents, was there any noticeable behaviour change in those who had

undergone a FL Programme? Had their condition in the family --in taking part in

financial decision making etc improved after the programme?

10. Any other observations (or suggestions from the respondents)

11. Your own observation and suggestions on FL training programmes?

12. GENERAL QUESTION (not specific to any FL Programme): What was there general

view on financial services and institutions? Which services were they mostly availing,

which of them were not accessible and what was their perception about these services and

institutions? Any observations or general trend that was observed in that area?


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Report format

For

State level overview of available Financial Literacy packages

________________________________________________________________________

(Please find attached a report format for compiling the information gathered during interaction

with different institution on financial literacy drive. Please keep the objective of study and try to

gather information accordingly. Please also refer to elaborated check list note given to you. )

Annexure 1

List of FL Participants(For Sampling)

Name of Institution

Participant mix No.

S.

N Name of Program

Years of

Operation Area/location

No. of

Beneficiarie

s covered

(Till date)

Name of the

organization who

sponsored it or

organized it

Name of the Program Content Pedagogy Implementing

Agency

Any remarks

(Own officials

or any other

source)


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Any best practices of delivery? Comparative analysis with which has been the most effective

and in which area? (Detailed out if any best practices)

Gap analysis

(take views of running institution and beneficiaries on each and every parameter of training

programme covering from content ,methodology tools, trainers, durations etc.)

Any Additional Information on the overall status of FL Training Programmes going on in

the state—


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Details specific to each Financial Training Programme

2. Name of Institution and Institution Type who sponsored it (NGO/Govt./other)

3. Type of the organization (who has funded or supported the programme)

a. NGO

b. MFI

c. SHG

d. Banks

e. Cooperative

f. Company

g. Government Department

h. Other

4. Contact Details

I. Name of the contact person

II. Address

III. Email-Id and Phone Number

IV.

5. Name and Type of the organization that has conducted the programme on ground

level.


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6. Since how many years you are conducting FL programme?

7. Outreach of programme (Number and geographical spread)

Total beneficiaries (since start):

Spread:

Village Districts

Block State

8. What kind of training do you give

1. Formal Financial literacy package/ module

2. SHG capacity building

3. MFI counselling

4. Credit counselling

5. Others (Specify)

9. Who are your target beneficiaries? Did you focus on any particular

category?

(target beneficiaries mainly in terms of gender, income level, category, education level

etc)

I. By income level (and specify)

II. By gender (male/female)

III. By any other criteria (please specify)


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10. What is the objective of your progamme?

11. How did you enroll the beneficiaries for the programme? (decide on options)

1. Informing in groups (specify how)

2. Door to door campaigning (specify how?)

3. Any other (please specify)

12. Do you provide same programme package same across different level of

participants? Y/N

If No, Please specify

13. What was the duration of your training package?

(Mention total duration with the time taken on each day and Was it convenient for

the beneficiaries i.e. did they find it too long or too short etc)

14. Did you access the training need of your beneficiary before conducting the

training programme?

What timing will be a suitable for them?

What is the suitable duration (total duration and duration per day)

that will be convenient for your beneficiaries?

What is their level of understanding regarding financial matters?


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Any other

15. How many participants do you have in each batch?

Any comments on the batch size (any suggestions or observations): --------------------------

------------------------------------------------------------------------------------------------------------

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16. Did you develop the following items/manuals for your FL training

programme?

Items

(Written guidelines or) Manual for trainers No Yes

Training of trainers No Yes

17. Details of contents

(Each content need to elaborate and analytically overviewed)

Budgeting & Planning (Detailed out)

Saving (Detailed out)


UN Focus states

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Credit (Detailed out)

Insurance (Detailed out)

Others (Specify)

18. Do you cover different Government schemes and programme in your FL

programme?

19. Do you charge any fee? Y/N

20. Training methodology, tools and packages used (Overview the existing methodology

and tools used for training)


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21. Do you take any measures to ensure proper quality of your programme?

Or do you measure the client satisfaction and usefulness of your financial literacy

programme by any means like-

a. Immediate feedback after training programme

b. Continuous monitoring and evaluation

c. Handholding support

Please specify in detail----

22. So, what has been the observed Impact/evaluation of your programme

(Any visual outcome or relationship i.e. financial literacy and financial inclusion, understanding

among the poor on FL, also see the impact w.r.t different categories of beneficiaries e.g

SC/SC/BC/PWD/PLHA etc)

23. Is there any significant impact on Financial Inclusion due to FL drive or apparent

relation between Financial Inclusion and Financial Literacy?

24. Views on Improvement

(What are the areas and requirement, view of institutions those running programme,

beneficiaries’ views)

25. What are the key strengths and weaknesses of the programme?

26. Do you know any other organization providing similar programme?