ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

M S SriramSubscribe to M S Sriram

Financial Status of Rural Poor

A village-level study conducted in Udaipur district of Rajasthan attempted to map the financial status of the rural population and the funds flow indicated that the overall asset-savings-income profile of the rural poor was not alarming. However, most of the assets and savings are liquid, forcing the poor to borrow at high cost. The study reveals the failure of financial institutions to penetrate the savings and loan market. It also reconfirms earlier findings that health-related expenses are one of the major causes of indebtedness amongst the poor.

Reviving Cooperative Credit Institutions

The task force on the revival of rural cooperative credit institutions (the Vaidyanathan committee) submitted its final report in February 2005. This article lists the issues involved in implementing an ambitious package of Rs 15,000 crore. It argues that the major issues stem from some of the compromises that may have to be reached in negotiations with the states.

Microfinance and the State

Since the early 1990s, there have been many significant state initiatives in the institutional and policy spheres to facilitate access to financial services by more poverty-stricken groups. This article reviews the performance of formal institutional channels of microfinance and discusses the emergence of new forms of collaboration in the delivery of microfinance services. However, some persistent issues in regulatory policies and institutional arrangements need to be dealt with so as to help the state leverage the resources available for the poor, effectively and in a sustainable manner.

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