UNDP-NABARD Collaboration for Financial Inclusion

The United Nations Development Programme (UNDP)'s Poverty Reduction Programme is aligned with the Government of India’s Eleventh Plan priorities and UNDP’s Country Programme Action Plan (CPAP) signed between the Government of India (GOI) and UNDP. As a part of the programme, NABARD and UNDP signed an agreement to address the challenge of financial inclusion in the UNDP focus States viz. Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan and Uttar Pradesh through a new paradigm which goes beyond mere access to the affordable delivery of a range of financial products and services that reduce the vulnerability of the poor and provide new opportunities to diversify their livelihoods.

Project Deliverables

• Innovation support for financial products and services suited to the livelihood needs of the poor.

• Services piloted to promote livelihoods and reduce vulnerabilities of the poor.

• Financial literacy strengthened for the poor, pricing and terms and conditions in 7 UN focus states.

• Knowledge sharing networks supported / established nationally and across 7 UN focus states between actors of the financial services sector to encourage delivery and scaling up of financial products and services for the poor.

• Policy environment for financial inclusion strengthened.

NABARD and UNDP will link up with regulators, financial institutions, civil society and the private sector to pilot doorstep delivery of Banking services; provide customised financial literacy to poor women and men and attempt to link them to the formal financial sector and facilitate knowledge sharing between actors of the financial services sector to share experiences related to design and delivery of pro-poor financial products. The project will also build capacities of project staff in project implementation and management through a range of inputs.

Project Planning & Review Committee (PPRC):

The PPRC will be headed by Executive Director, NABARD and UNDP representation will serve as the Project Steering Committee. The PPRC will :

• ensure that project goals and objectives are achieved in the defined time frame;

• review project progress and suggest implementation strategies periodically;

• review project expenditures against activities and outcomes; and

• approve Annual Work Plans

Activities planned / undertaken under the Project

• Base line survey to assess the customised product requirement of disadvantaged region with special focus on disadvantaged groups

• Mobile Van Banking

• Resource Centre

• Activity Profiling of remote villages with significant concentration of disadvantaged groups for further Credit Linkages

• Financial Literacy by FINO Bandhus as BC Model through FINO Fintech Foundation

• Multiplication of Financial Literacy material in hindi by ISMW

• Financial literacy through Nukkad Natak, audio-video, Workshops, road shows, etc.

• Exposure visit of stakeholders to successful projects in neighboring areas.

• State level financial literacy strategy Meets, Workshops, etc. for knowledge sharing

• Study on Financial Inclusion of Street Vendors

Reports submitted under the project :

1. Draft Report of Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh States on conducting an Assessment Study of design and delivery of financial literacy among poor submitted by BASIX (June 2010)

   
   Bihar
   Chhattisgarh
   Jharkhand
   Madhya Pradesh
   Orissa
   Rajasthan
   Uttar Pradesh
   
   

2. Report on conducting an Assessment Study of design and delivery of financial literacy among poor across 7 UN focus States submitted to UNDP by BASIX (July 2010)

   
   

3. State Level Financial Literacy Strategies Summary Report for 7 States compiled by Shri Gopala Krishna Ayitam, Management Consultant, Agribiz (March 2011).

   
   

4. FICCI-M-CRIL – Promoting Financial Inclusion (2011)