Beruflich Dokumente
Kultur Dokumente
Community Operational
Manual
Community
Operational Manual
ASSAM STATE
Index
Chapter
1
2
3
4
Contents
About Community Operational Manual
Project Key Principles & Non Negotiable
Social Inclusion
Institution Building
4.1 Institution Building Plan
4.2 Structure of Peoples Institutions to be build in Assam
4.3 Planning for Proper Governance and check and
balances in federation of Assam
4.4 Training for SHGs and Federation
4.4.1 Training Module
4.5 Opportunities & Challenges of Institution Building in
Assam
Page No
1
2
3-15
16-72
5
6
7
8
73-80
81-89
90-103
104-119
147-150
151-152
153-158
9
10
11
12
13
14
15
120-123
124-128
129-135
136-146
ABBREVIATIONS
ASRLMS
COM
CBO
SHG
VO
BLF
CRP
BC
CC
CA
PRP
PRI
NGO
HH
BPL
BMMU
DMMU
SMMU
MCP
CIS
EC
GB
CBO
SGSY
Block Coordinator
Cluster Coordinator
Community Activist
Project Resource Persons
Panchayati Raj Institutions
Non Government Organization
Households
Below Poverty Line
Block Mission Management Unit
District Mission Management Unit
State Mission Management Unit
Micro Credit Plan
Community Investment Support
Executive committee
Governing Body
Community Based Organization
Swarnjayanti Gram Swarozgar Yojana
POP
CHAPTER 1
ABOUT THE COMMUNITY OPERATIONAL MANUAL
This is the manual for Assam State Rural Livelihood Mission Society (ASRLMS) which will
guide Project staff in successful implementation of the project and also the community in
empowering themselves and improving their livelihoods.
The manual will be a guide to the project staff and will help them understand the project cycle
and the processes involved. The manual provides a step-wise implementation of different
project phases along with the graduation indicators which also correspond with the growth
and maturity of the community institutions that will be supported under the project. In the
manual not only the reasons for interventions but graduation indicators are also mentioned
which will inform the project staffs and the community about the next course of interventions
for the smooth flow of the project with right impetus at the right time. This will also act as a
checklist for both the community and the project staff facilitating project implementation.
The manual will also enable the participating target communities on how to improve their
lives and reduce poverty by working together and have confidence in themselves.
The community has seen many schemes in the past which were implemented in a top down
fashion and all key decisions were taken by outsiders which did not benefit the poor. In all
those schemes community was hardly, least so, in prioritizing their needs.
They were simply treated as recipients and the project implementers were the providers.
Under this project, the community is expected to take the lead and be involved in the whole
process of self and community development by building their own institutions and thereby
ensuring a quality of life for themselves and the community at large.
.
Why use this manual?
This manual is for use not only by the ASRLMS Project field staff but also the Self Help
Groups (SHGs), Village Organizations (VOs) and various Community Based Organizations
(CBOs) envisaged in the project. This manual will help everybody understand the WHAT,
WHY, HOW and WHEN of different project cycle, stages and processes should take place.
This manual will help them in meticulous planning, implementing and managing their
development and funds well and thereby comply with project rules and procedures. This will
help in rolling out the project in smooth and effective way to bring all round development of
them and thus village and society as a whole.
The Community Operational Manual is a dynamic document. During the implementation of
the project, there will be more lessons learnt and more experiences gained which will be
incorporated into this manual. ASRLMS also proposes to develop component wise manual
on Livelihood Interventions, Capacity Building and Skill development.
CHAPTER 2
KEY PRINCIPLES AND NON-NEGOTIABLES
The project, the project staff, the facilitating teams and the community will adhere to the
following key principles of the project:
1. Transparency- All the activities undertaken will involve decisions to be taken involving all
those directly concerned and would be open, clear and accessible to all.
2. Accountability- At each level the responsibilities will be mutually and collectively owned.
Each stakeholder is responsible for actions taken.
3. Participation- The project will ensure participation of all stakeholders adequately
represented by the target poor, disabled and most vulnerable. Each decision taken would
follow a participatory process and there would be no imposition at any level.
4. Inclusion- Inclusion of the most marginalized, vulnerable and destitute section would be
the key guiding principle. Leadership at each level will be representative of the vulnerable
segment. 80-90% of the funds would flow to the very poor.
5. Facilitation- In every step taken, the project implementers would play only a catalytic role
and strive to hand over the responsibility to the community to the maximum extent possible.
There shall be faith in the capability of the poor to undertake, decide and control the activities
of the project.
6. Equity- The project will give emphasis on women groups in particular and they will play a
determining role in all decisions to be taken in the project.
The projects aim is to reduce the poverty with special focus on the poorest of the poor
community by their own efforts. Poor community knows that when they have authority, they
will use them responsibly and carefully. Therefore, they must have some simple rules to
ensure success in their activities. Following these rules will help them reap the full benefits of
the programme. Any violation of these rules can lead to blocking their progress.
Therefore, project is based on certain non-negotiable that would guide the community while
implementing the project. The key non-negotiable are those that the community must:
1. Practice self-help and contribute to their development
2. Give preference to the poorest and disadvantaged members and families
3. Must be open and transparent in all decision making
4. Be Prudent and cost conscious while spending the money
5. Ensure attention to quality and sustainability in all activities
CHAPTER 3
SOCIAL INCLUSION
Approach :
Broad strategy and sequences for social inclusion in the villages
1
Interaction with
the local
panchayats,
field level
officials and
Establishing
rapport with
the community
and key
informants
2
Identification of
socially
excluded
communities,
areas etc on
the following
criteria
3Participatory
poverty
assessment for
social inclusion
covering
following
aspects:
Application of
participatory
tools and
techniques for
identification of
excluded
families
Preparation of
the list of
excluded
families for
inclusion,
Approval in the
Gram Sabhas
and Formation
of the new
groups
Geographical
exclusion
Social group/
well being
assessment
Resource
mapping
assessment
Social
exclusion
Asset/ resource
assessment
assessment
Social
mapping
assessment
Economic
exclusion
Vulnerability
and risk
management
assessment
Gender based
exclusion
Exclusion on
the basis of
poverty and
vulnerability
Livelihoods
assessment.
Livelihood
mapping
Well-being
/poverty/
wealth
mapping
Problem
opportunity
assessment
Exclusion of
migrants
1.
2.
3
3.
4.
of banks as for example those who do not have bank accounts will be identified in the
inclusion process. Assam still has some un-banked areas particularly in hill districts. This
has come in the way for formation of Self Help Groups in those pockets.
iv)Gender Exclusion :
It has been observed in certain districts of the State that women do not join groups
because of social and familial proscription. This has been observed during studies and
interactions in some Muslim dominated areas particularly in Char Areas. A special effort
will have to be made to motivate these women to come out from social inhibition.
Domestic responsibilities are still considered paramount .
v)Exclusion of Migrants :
Exclusion occurs due to migration also. Some families migrate to nearby areas for better
livelihoods. Migration also occur due to natural disaster . It has been observed that
among women members of the household migration is though less, they find it difficult to
involve themselves in group works. This type of exclusion will be taken into consideration
during social mobilization and inclusion process particularly in migration prone rural
areas of the State.
5.
6.
Livelihoods assessment.
Under it, existing livelihoods of the poor families related opportunities and constraints
will be taken into consideration. Earnings, wages, remuneration of the poor groups
from different sources of livelihoods will also be assessed for appropriate intervention.
Gender assessment.
Gender assessment will cover the following aspects.
Type of work, workload and responsibility.
Having knowledge / skills.
Taking part in household decision making.
Having access and control over resources.
Having power and status.
Victim of alcoholism/domestic violence.
Resource mapping.
Social mapping.
Livelihood mapping.
Well being / poverty / wealth mapping.
Seasonal food calendar.
Chapatti diagram.
Geographical transact.
Wealth grouping.
Social grouping.
Resource Mapping
A Resource Map basically portrays a general picture of natural resources of a locality, like
fields, water source, trees, forests, ponds, wells, rivers, canals, dams, etc. it shows the
resource base of a locality and helps to assess the locality in terms of resources. In the
Resource Map natural resources in terms of reserve forest, agriculture fields, plantation
7
under social forestry, canal, stream, check dam, river, proposed place for plantation, tank,
Panchayat ghar, metal road, approach road, households, etc., have been shown. Resource
Mapping will help us in knowing the present situation of the villages of the Self Help Groups,
their problems and dependence on the common resources.
Social Mapping
A social map depicts the social aspects of a village, for example, households, their social
categories, literate households, illiterate households, women-headed households,
schools, roads, hospitals, clinics, etc. A social map shows the social profile of a village
and provides insights into the social aspects and social life. It gives us an overview of the
socio-economic status of the households in terms of advantage and disadvantage
households, livelihood, livestock whether member of self-help group, levels of literacy,
level of health, status of roads, disabilities, social infrastructure etc.
A social map of a village can highlight the following along with many other aspects:
Livelihood Mapping
Livelihood mapping is a kind of social mapping illustrating the different livelihoods pursued
in a locality. It can be an exhaustive mapping of livelihoods of all households including the
households of the Self Help Groups in a village or it can be mapping of a group of
households pursuing similar livelihoods. A livelihood map is useful for discussing livelihoodrelated issues. Livelihood mapping becomes meaningful when mapped together with the
asset status of households, access to resources, health, wealth, poverty and other social
aspects.
W e a lth M a p p in g
S y m b o ls
IR R IG A T IO N
G RO UP 1 PO O REST OF TH E POO R
W ELL
G R O U P 2 -H O U S E H O L D A B O V E P O O R E S T
G R O U P 3 H O U SE H O L D A B O V E 2
G R O U P 4 -H O U S E H O L D A B O V E G R O U P 3
The Above mentioned diagram depicts a Wealth Map of a village drawn by its villagers. In
order to draw the roads, the paddy fields, the trees they uses locally available colours and
items.
In order to indicate their households, they use some symbols. Then they use different colours
to divide their households into different economic categories. They use red colours and put
it in the households which are the poorest one. Then they use blue colours to indicate the
households above the poorest one. They use green colour and pink colour to show the
households with good economic conditions and rich households respectively.
So this diagram shows a true picture of the economic condition of the village. This Map will
be helpful to implement different poverty alleviation programmes in the Village and will also
be helpful to find out the resources of the village that can be used to improve the econom ic
condition of the village.
J
A
n
F
E
b
M
a
r
A
p
r
M
a
y
J
U
n
J
u
l
A
u
g
S
e
p
O
c
t
N
o
v
D
e
c
F ever
C old &
w h oop in g
cou gh
H ead a ch e
D iar r h ea
M easles
J au n d ice
V om itin g
Scab ies
T eta n u s
The above mentioned Health Calendar indicates that the villagers have symbolized the
months in the columns in ascending order and symbolized the name of the diseases in the
raw. They have put different quantity of stones to different months against different diseases.
They put a large quantity of stones in the month of April against Diarrhoea It means that, this
disease affects many people of the village , specially during the month of April. In this way ,
they also use different quantity of stones against different diseases to show the occurrence
of the diseases in the village during the entire year.
These types of Seasonal diagrams are useful to start Vaccination Camps and to adopt
precautions against diseases prior to occurrence of it.
10
Seasonal
Food
Calendar
of
Village
S w e e t re e d s
G ro u n d N u t
Beef
B a g s o f S ta p le fo o d
M u r u la
Yam s
G oat m eat
G re e n M a iz e
W a te r M e lo n
P u m p k in s
G r e e n M a iz e
M e lo n s
Jan
Feb
M ar
Apr
15
12
10
M ay
Ju n
Jul
Aug
7
28
8
30
B a g s o f s ta p le fo o d
Sep
O ct
Nov
Dec
26
24
21
18
In the above mentioned Calendar, the villagers have indicated the availability of different food
items in different months. They have put different symbols for different food items to
differentiate them from each other. They are trying to show in which month, which type of
food items is largely available compared to other items and in other months.
Daily Activity of Women Diagram:
Dairy Activity of women diagrams are helpful to find out the different household activities
done by an woman within the household.
D a ily
A c tiv ity
A M
S c h e d u le
H o u r
o f W o m e n
P M
L e g e n d
1
S le e p in g
S w e e p in g
P r a y in g
3
C o o k in g
4
F e t c h in g W a t e r
5
G o in g t o s c h o o l
6
W e e d in g / p la n t in g
7
M a r k e t in g
8
W a s h in g P la t e s
9
R e s t in g
1 0
H a r v e s t in g a n d f e t c h in g f ir e
w o o d
1 1
R e t u r n in g f r o m
fa rm
a n d e a t in g
1 2
In the above mentioned Diagram, the different Daily Activity of Women are symbolically
shown on the Diagram. On the other hand, hours are also mentioned on in the chart. The
legends are expressed on the right part of the chart.
11
4
2
2
3
As mentioned in the Diagram, the village women have graded their problems. They have
given 1st position to food problem among the all other problem. They have given 2nd
priority to water and education problem. In this way, they have given third priority to clothing,
sports and cultural problems. They have given the last priority to other luxurious items for the
household.
ANALYSIS POINTS FOR CHAPATI DIAGRAM
12
Geographical Transact :
Geographical Transact is a different type of method to collect accurate data from the villages.
It involves systematic walk from one point of the village to another with the village people, so
that the outsider can observe different aspects of rural ecology and soil condition, land use
patterns, crops, livestock, agro- ecological zones etc. It helps to find out the different zones
of the village, their uses, their problems and their opportunities.
After grading the problems according to their size, an analysis is done on the following format
for planning:Indigenous Criteria of Poverty
The villagers can apply the mapping method for identifying different social-economic groups
of households on the basis of the characteristic features and causes of poverty prevailing in
those households. Food availability during a year is a significant factor for the villagers in
grouping/ ranking of poor households. The size of landholdings and their productivity is
another important consideration for the villagers for identifying higher groups but landholding
alone was not enough, its productive capacity is equally important. The number of
dependents is another consideration. The availability of food is the basic criterion. The local
group can explain that the common property resources and their dependence on them. For
many of them such resources form the basis of their livelihood, for others it supplement
income, food and other requirements and also provided sustenance during difficult times.
Environmental degradation reduces the quality of life for the poor.
Well-being/ Poverty/ Wealth Grouping:
Well-being/ Poverty/ Wealth Grouping is a method of grouping of households on the basis of
income, wealth and other local measures of well-being. Different criteria can be used for
wealth grouping based on local peoples perceptions. Wealth ranking is based on the
presumption that the local people have the necessary knowledge to rank households, for
example, they have knowledge of the kinds and position of households concerned.
This method involves identifying the socio-economic groups by the local people based on
local criteria. Poverty mapping is followed by poverty grouping for identification of different
socio-economic groups in the villages. This helps in understanding the socio-economic
disparities within a locality according to the local peoples criteria. An interesting aspect of
poverty/ wealth mapping is that points of distinction between households which outsiders
tend to overlook or miss can form an important basis for the local people while differentiating
between the households concerned.
Following aspects can also be studied with the help of the PRA Exercises :
Relating to Socio Economic Status of Women:
Social Empowerment:
Discrimination in Education
Adult Literacy
Participation in intra household decision making process.
Maternity care and perception of women to mother and child welfare programme :
Immunization
Nutrition Programme
13
14
The following additional information can also be gathered for planning different
interventions under NRLM:
Federation of SHGs if any?
Profile of good NGOs, CBOs, Social activists and facilitators working in the block.
Training institutes, centers, master trainers available in the block or in the District.
Livelihood collective e.g. milk cooperative societies, marketing federations, handloom
federations etc. in the block.
Marketing infrastructure and linkages available for rural products in the block
Successful enterprises running in the block
Financial institutions, micro finance institutions working in the block or in the District.
Key livelihoods activities of the SHGs in the block/ lead sectors in the block.
Infrastructure/ common facility created in the block for the promotion of livelihood
activities of the SHGs.
Existing arrangement for converging social services to the SHGs eg. Health,
education, ICDS etc.
Subsequent steps / interventions:
On completion of the exercise the following steps can be taken in the villages/ block under
NRLM in the initial stage.
Formation of primary federations with existing good SHGs having 70% BPL members
Identification of best SHGs leaders and members to further train them up as
community resource persons, facilitators, animators, mobilizers etc.
Participatory identification of poor for social inclusion to achieve saturation.
Identification of existing good SHGs for formation of village organizations (primary
federations)
Grading of existing SHGs in to following categories.
Meeting the basic norms- Following Panchasutra model
Could be trained- to achieve the Panchasutra standard
Could not be worked upon- will require total restructuring and development
. 8. Preparation of the list of excluded families for inclusion.
After going through all the exercises as already mentioned list of excluded families
belonging to poorest of the poor families will emerge. The list will be prepared with the
name of the poorest of the poor at the top identified from the excluded sections for social
inclusion.
9. Approval in the Gram Sabhas.
List so prepared will be placed in Gram Sabhas for approval.
10. Formation of new groups.
New groups will be formed including excluded poor families. Institution building process
explained in the next chapter will be followed for group formation.
For Social Mobilization CRP strategy is taken. The approach and sequence of CRPs
are mentioned broadly in the Institutional Building Chapter.
15
CHAPTER 4
INSTITUTION BUILDING
Approach
1
Formation
of new
groups for
social
inclusion.
Capacit
y
building
of new
groups
includin
g
handhol
ding
training
.
Grading
of
existing
SHGs.
Capacity
building
of weak
SHGs for
formation
of
federatio
ns (village
organisati
ons).
Identific
ation
and
revitalis
ation of
defunct
groups.
Formatio
n and
developm
ent of
federatio
ns (village
organisati
ons and
their
capacity
building).
Formati
on of
liveliho
od
collectiv
es.
Formati
on of
cluster/
Gaon
Pancha
yat,
block
and
district
federati
ons
subsequ
- An Affinity Group
-A Homogeneous Group
- A Democratic Group
- A Leadership Group
- A Disciplined Group
- A Transparent Group
- A Progressive Group
- A Conscious Group
Newly form groups will cover all the excluded categories taken into fold through social
inclusion process as already mentioned in the previous chapter.
Group membership of the newly included poorest of the poor families who has been suffering
from social exclusion will have to get the following advantages from the groups.
Weekly Meetings: The SHG which meets weekly once, is strong and viable. The
needs of the members are met promptly. The level of uncertainty in the lives of the
poor comes down significantly.
II.
Weekly Savings: In a SHG where savings are pooled once in a month, the needy
members have to wait for 30 days to access small loans for addressing urgent
domestic needs. In a SHG where savings are pooled once in a week, the needy
members are satisfied.
III.
Internal Lending: In a SHG, members access loans through internal lending from the
group corpus with sources from bank interest, savings and interest accruing from
repayments. This practice helps to address the needs of all members to some extent.
IV.
Regular Repayments: In strong Self Help Groups, members repay their loans as per
the schedule. This will ensure that other members are not kept waiting for their turn.
Regular repayments also enhance the credit worthiness of the SHG among the
bankers or financing institutions.
V.
Healthy Book Keeping: Every good SHG should have a regular bookkeeper to
maintain the records of the SHG viz., Meeting Minute book, Cashbook, Loan Ledger
(Small Loans and Big Loans) and savings register. The bookkeeper should be well
mannered and selected from the same village. He/ She should be paid honorarium
from the SHG corpus. The bookkeeper should be very obedient to SHG members.
Besides Panchasutra model following indicators and variables will also be applied for grading
the groups. These indicators and variables will also be used for monitoring, capaxcity
building and as institutional sustainability and financial sustainability index. They are as
follows:
Institutional sustainability Index of the SHGs has been constructed with the help of Six
Indicators of Group Management:
a.
b.
d.
e.
f.
18
Leadership Index.
Index of Meetings and Decision making Mechanisms or record keeping.
Accounting and monitoring.
Networks and memberships, conflict resolution capacity.
Dropout rate of the members from the group
a. Leadership Index :
The Leadership Index is constructed through Three variables:
b.
c.
d.
Maintenance of Records.
Regularity in maintaining the records.
Who writes of records, the knowledge of writing the records.
Level of transparency in maintaining the records.
Auditing the group accounts.
19
Once Independent Indexes are constructed for each of the above said indicators of
group management, all the individual indices will be used for the construction of a
composite index of SHG- Institutional Sustainability.
Financial Sustainability Index:
The Financial Sustainability Index of the group has been constructed with the help of six
indicators of financial management of the group. As the first step , an independent index is
constructed for each of these components.
a.
b.
c.
d.
e.
20
The groups capacity to absorb and utilize the resources will determine the financial
sustainability of the group.
The Index has been constructed by using four variables
The effort of the group members to raise resources
The capacity of the group absorb and utilize resources.
The average number of members are engaged in income generating activities.
The level of benefit distributed among the members.
f.
The SHGs will have to reach the above standards as shown under institutional and financial
sustainability index, before coming together for forming primary federations (village
organizations).
GP/ Cluster
Level Federation
Block level
Federation
GP/ Cluster Level
Federation
Village
Organization
Village
Organization
SHG 1
Village
Organization
SHG 2
SHG 6
SHG 3
SHG 7
SHG 4
SHG 8
SHG 5
SHG 9
SHG 10
21
All the members of the Self Help Groups coming under the federation will be under general
body. Two selected members for each Self Help Groups will be the members of the
Executive Committee. Office bearers will be selected by the federation accordingly. Different
sub- committees will also be constituted to take care of different functions of the Federation.
Development and management procedures of the proposed village organizations have been
given separately in detailed in the chapter.
The role of Gram Panchayat level/ cluster level federations : Ensure effective functioning of Village Organizations and Self Help Groups below.
Establish linkages between Village Organizations and Block level federation.
Ensures smooth flow of CICS etc. as per norms and agreement.
Monitor and supervise the smooth functioning of Village Organizations and Self Help
Groups.
Establish linkages and partnership with banks for smooth credit delivery.
Facilitate the growth of livelihoods collectives for promotion of income generating
activities.
Establish backward and forward linkages of livelihoods activities.
Ensures proper book keeping and audit account book keeping of federations and Self
Help Groups.
22
Training of the book keepers who are involved in maintaining records of the Village
Federations.
Auditing of accounts of the Village Federation /G.P. Federation.
District Level Federations : District level federation will evolve in due course of time
Development and Management of Village Organizations:
Once groups have established a sound economic base, their consolidation into village level
federations will be promoted. Groups will become stronger and more efficient when
horizontally and vertically linked. Inter group federations will promote solidarity and
economics of scale both in group activities and delivery of development services and enable
members to develop a broad base for action. In addition this will stimulate the formation of
more groups.
As the SHGs mature in to self- managed units, they realize that there are many things which
cannot be handled by small groups. All the SHGs in each village are federated into a village
organization. The Village Organization in the area symbolize the collective strength of the
poor. They have the critical mass to give visibility to the organization of the poor. The project
team take care to see that there is role clarity between the SHGs and the Village
Organizations. The Village Organization do not impinge on the autonomy of the SHGs in
decision making. The Voluntary Organizations focus on the issues which the SHGs are not
able to handle at the SHG level. All the members of the SHGs in the village are the members
of the Village Organization which meets once in a month. Some of the responsibilities of the
Village Organizations are Monitor the functioning of the small groups and assist the weaker groups to improve
their performance.
Formation of new groups and their capacity- building
Capacity building of the groups by organizing training etc.
Provide audit services to the groups.
Provide linkages with the banks and line departments
Assert for the right and entitlements of the poor.
Mobilize community action for securing basic minimum amenities for the poor in the
village.
Enhance access of the poor to education and health
Take greater role in identification of the poorest of the poor for the anti-poverty
programmes of the government.
Cluster level organizations/ Federations/ Village Organizations broad functions:
Collective Problem Solving
Collective management of certain community services.
Collective lobbying for access to programme funds.
Creating a platform for sharing of experiences , by holding monthly or quarterly
meeting of group representatives at cluster level for comparing notes on the working
of groups in respect of recoveries, loans, use of idle funds, etc.
Collective knowledge building
Collective business activities e. g. purchases of agricultural inputs.
Provision of social security schemes eg. Life assurance, cattle insurance, health care
schemes, economic security schemes for women.
Inter group assistance (both financial and other support especially in identifying and
strengthening the weaker groups).
23
24
General Body:
All the members of Self Help Groups automatically become the General Body of the Village
Organization. That is if there are 150 members in the 15 groups put together, these 150
members would constitute the General Body of the Village Organization.
Executive Committee:
Two members from each SHG will form the Executive Committee. Five members from
Executive Committee will be selected to Office Bearer Committee/Parliamentary Committee.
The Office Bearers of the Executive Committee are:
1. President
2. Vice President
3. Secretary
4. Joint Secretary
5. Treasurer
Role of these Office bearers:
President:
The Executive Committee shall elect from among its members a President for a
period of one year from the date of election. The Executive Committee has the right
to remove a President at any time during their tenure and elect new ones from among
the existing committee members.
The President shall preside over all the Executive Committee and General Body
meetings of the Village Organization. In the absence of the President, the Secretary
and in the absence of both, any member of the meeting may be chosen to preside
over that meeting.
The President shall represent the Village Organization in other forums/ organizations
The President operate the accounts of Village Organization with banks and other
institutions, endorse, sign, en-cash cheques and endorse, transfer , negotiate
promissory notes, securies and other instruments on behalf of Village Organization
along with the Secretary and Treasurer as the Executive Committee may resolve.
President shall be the officer, and one of the signatory on all legal documents.
Secretary:
Secretary convene and participate in General Body, Executive Committee and
arrange for implementation of their resolutions and decisions.
Arrange for maintenance and security of the records and properties of Village
Organization.
Manage the funds subject to the control of President/ Executive Committee and
arrange for maintenance of accounts of the Village Organization.
Appointment and deciding on the powers, functions, responsibility and remuneration
of the employees of Village Organization in accordance with the Rules of Business
and Administration.
Exercise administrative control on all employees of Village Organization
Sign and carry out correspondence on behalf of Village Organization
Perform all functions assigned by the EC and the President
Notify the list of members and members eligible to vote and lists of members ceased
25
Treasurer:
Present the financial transaction in all the Village Organization meeting.
Undertake activity related to banking of Village Organization
Check and collect the repayment of the loans along with interest.
Check and collect the repayment of the organization.
Provide information and support to Repayment, Social Audit and procurement
Committee regarding the financial matters
Signatory to the Village Organization account.
Functional Committees:
There would be a Functional Committee in every Village Organization as decided by the
General body. They are:
Social
Audit
Committee
Repayment
Committee
Procurement
Committee
Bank
Linkage
Committee
Social
Action
Committee
The committee will collect and maintain schedule of rates for every item.
Issue Utilization Certificate for every trench of fund release.
Request letters for next installment will be made out by the Sub- Committee once the
triggers are achieved on the next installment.
Help the Village Organization in appraising the CIF proposal.
Liaise with the social audit committee in giving clearance for the CIF project proposal.
Give all assistance to the Social Audit Committee in completing the audit.
Give all assistance to the Auditors of the VO/BLF in completing the audit.
c. Bank Linkage Committee:
The Bank Linkage Committee will have the following functions :
Loan payment from bank to SHG
Repayment from member to SHG to VO
They assess the SHG for bank linkage by conducting the SHG grading exercise with
the support of CRP/CM etc. This grading will be conducted every six monthly for
every SHGs.
Organize training
d. Social Action Committee:
The Social Action Committee will have the following function:
Identify the social issue in the village that needs attention
Except these, as per need some other sub committees can be formed .These are Education Committee, Health Committee, Insurance Committee,Livelihood Committee,
Dairy Committee ,Marketing Committee, Gender Committee, Institutional Building
Committee etc.
Graphical Representation of the Structure of the Village Organization :
General Body
Executive
Committee
Functional
Committees
SHG 1
27
SHG 2
SHG 3
SHG 4
SHG 5
Meetings:
General Body :
The General Body of a Village Organization meets every three or six months. The main
action plan of the Village Organization is formulated in these meetings.
Executive Committee :
The Executive Committee meets many times a month. Implementing the decisions/
resolutions made by the General Body and the Committee are its responsibility.
Services of Village Organizations:
Financial Services:
Savings- mandatory , voluntary , fixed deposits , recurring deposits and savings for
specific purposes.
Loans- Life cycle needs and livelihood activities.
Insurance- life, asset and health
Remittance services are upcoming
Act as a business correspondent of the banks as per the RBI circular.
Act as a business facilitator of a bank.
Social Services:
28
Professional Services:
SHGs do not like to do business with banks on their own. On the other hand, banks
are not in a position to deal directly with the poor because of shortage of staff,
procedural problems, and mindset. There exists a need for professional services, free
from exploitation, in the medium term. Al most all Federations and to facilitate bank
linkage.
29
Topic
FACTORS
INFLUENCING
GROUP
FORMATION
AND
SUSTAINABIL
ITY
Key Questions
AIMS
AND
OBJECTIVES
OF AN SELF
HELP GROUP
33
STRUCTURE
OF A SELF
HELP GROUP
THE
IMPORTANCE
OF REGULAR
/WEEKLY
MEETINGS:
NECESSARY
CONDITIONS
FOR
CONDUCTING
A MEETING
Size-10
All are poor
Bound by affinity
Rotational leadership
Voluntary in nature
Socially viable institution
Democratic nature
Non- partisan nature
Informal nature
Rules and regulations
Books and accounts
Regular weekly meetings are important
because they :
Provide a regular and frequent
opportunity for SHG members to
interact with each other.
Inculcate discipline
Provide scope for regular financial
transactions, such as saving,
lending
loan
and
interest
repayment.
Allow for periodic monitoring and
follow up of loan repayment
Provide an opportunity for the
capacity building of the members
and
for
developing
their
communication skills.
Provide a forum for identifying,
discussing
and
taking
up
community action programmes.
The following are the important conditions
for conducting a meeting :
A place for the meeting, accessible
to all
Lighting facility in case the meeting
is held at night
A fixed time when people will meet
Mats or durries o sit on.
A trunk or box to keep all the books
of accounts, which may also be
used as a makeshift table by the
bookkeeper.
Presence of all the members
Presence of all the representatives
Books and documents, pens and a
book writer
An agenda to be discussed in the
meeting
The following process should be followed
while conducting a meeting:
Sit in a circle
Sing a prayer or group song
Select a chairperson
Welcome address
Record the attendance
Set the agenda
Review the previous meetings
minutes.
Maintain discipline throughout
group members should ensure that
rules and regulations are followed
throughout the meeting.
Complete financial transactions
related to savings, repayment,
lending etc.
Ensure that all issues on the
agenda are discussed.
Ensure that all members participate
in the decision making
During every meeting the SHG
members must make it a point to
discuss and act upon at least one
issue other than saving and credit
Record proceedings during the
meeting itself and read them out to
all members
All members must sign in the
resolution book.
Vote of thanks.
Norms
for
successful
communication in the SHGs :
A circular seating arrangement
helps in democratic communication
Unless only one person speaks at a
time there is chaos and noise.
If people indulge in side talk, the
rest of the group is destructed.
Everybody should be given a
chance to voice his or her opinion
All important discussions and all
decisions in the meeting must be
documented.
Why is it important to
document
discussions
and
decisions?
What will happen to a
discussion
if
everybody is not
given sunch to voice
his her own opinion?
Are there any rules
and regulations in a
group that support
effective
communication?
Unity results in :
UNITY IN THE What is unity?
GROUP
People helping each other instead
Why unity is Important?
of pulling each other down
Co-operation and co-ordination in a
group
Respect for each other
Collective empowerment
Increased self- confidence of
individuals in a group
Greater effectiveness of collective
effort.
SUCCESSFUL
COMMUNICA
TION IN THE
S.H.G. :
35
DISCOVERIN
G
THE
STRENGTH
OF
THE
S.H.G.
MEMBERS
GOAL OF THE
GROUP
What is a goal?
GOALS
SETTING AND
ACTION
PLANNING
FOR THE SHG
THE NEED OF
BOOK
KEEPING
BOOKS AND
RECORDS OF
A SHG
What are the Various The following are the books used to record
Books and Records transactions in an SHG :
used in an SHG?
Minute book
Admission Register
Attendance Register
Members Individual Pass Book
Individual Savings Ledger
Individual Loan Ledger
Cash Book
General Ledger: It contains the
activity wise cumulative balances
Receipt Book: It keeps track of all
receipts to the SHGs.
Payment Voucher: All payments
and expenditures of the SHG are
routed through the Payment
Voucher
A demand Promissory Note :
This Note is taken from the
borrower as security of the loan.
Documentation File :Supporting
documents, related to various
financial transactions and decisions
made by the group and all
correspondence should be filed in
the Documentation File.
Bank Pass Book/ Challan/
Cheque Book
Local Contribution Register : It
36
CONTROL
OVER
THE
COMMON
FUND
How the SHG will retain In order for the SHG to retain control over
control over the common the common fund the following practices
fund?
are usually observed:
THE
NEED
FOR
LEADERSHIP
IN THE S.H.G.
37
Why do we need Leadership is needed so as :
leadership in an SHG
To monitor and improve upon the
?
groups performance
To co- ordinate all the groups
activities.
To nurture the groups inter
personal relationships.
To ensure that all members
participate in the groups activities
To take initiative in establishing
linkages
with
external
organizations.
LEADERSHIP
STYLES
ROTATING
LEADERSHIP
STYLE
Why
should Rotational Leadership is an SHG is
leadership be rotated important because it :
in an SHG?
Creates opportunities for all
How
frequently
members to develop leadership
should leaders be
qualities through practice.
Enables
the
sharing
of
rotated?
Why should new
responsibilities.
leaders be appointed
Allows for the SHG to function
six
months
in
smoothly even if some members
advance
of
are absent.
retirement of the old
Creates equal opportunity in the
leaders?
SHG.
Does not allow for domination by a
few members
Why
Self Self Assessment is important in order to :
Assessment
is
Identify ones strengths and
necessary
weaknesses, to build on ones
strengths and reduce weaknesses.
Identify opportunities available to
the group and to make the best use
of them.
Monitor ones performance as a
group.
Hold a mirror to us.
38
Female infanticide
Dowry
Alcoholism
Casteism
Bureaucracy
39
Rural Women
Poor
Number of women around 12-20 nos.
From the same village.
Who came voluntarily and are interested in joining the SHG.
For their own and communitys socio-economic development.
With the principle of mutual help
Willing to form a viable group of their own.
How to Conduct:
1.
2.
3.
4.
5.
6.
How to conduct :
1.
2.
3.
4.
5.
6.
40
Learning Indicators :
1. The participants when questioned in random come up with proper answers regarding
the need for women SHGs.
Topic :4 How to form a Womens SHG
Objective : To guide the participants in the steps or the methods involved in the formation of
a women SHG.
Pre session Preparation : None.
Contents :
1)
2)
3)
4)
5)
6)
Identifying the poor women in the rural areas through several visits to the village.
Conducting informal meetings with prior information.
Meeting the families to understand their family situation.
Building rapport with the poor people by empathizing with them.
Getting the members to form SHGs to address their problems.
Motivating the poor people through other members of the well organized/ experienced
SHGs.
How to Conduct :
1)
2)
3)
4)
5)
6)
5.
6.
7.
8.
How to Conduct:
1.
2.
3.
4.
5.
6.
7.
43
Doctor
Pregnant Woman
Engineer
Drunkard
Farmer
Social worker
Old Lady
Child
MLA
Blind Woman
Teacher
Handicapped Man
b. The place should be convenient for all the members to come together
5.Time
Time for meeting should be fixed which is accepted by all members.
6.Attendance
There should be more than 80% attendance in all SHG members.
7.Participation
a. All the members should effectively participate in SHG meetings and also in the
activities of the SHG.
b. There should be more than 80% participation in SH
8.Management
a. There should not be any designation in the SHG
b. Each group should select the representatives from among the SHG members.
c. The representatives should be changed once in a year after the formation of the SHG.
9.Accounts Books.
The SHGs should maintain properly the following books.
1.Meeting Minutes Book
2.Savings Ledger
3.Loan Ledger
4.Cash Book
6.Attendance Register
8.Insurance Register
9.General Ledger
10.Savings
a. There should be regular weekly savings.
b. It should be optional savings
c. Savings can be given back to the members only in case of migration or death.
The savings amount can be adjusted towards the loan amount in case of defaulter.
Savings from non SHG members is not encouraged.
11.Rules and regulations
All the SHG members should follow all the rules and regulations of the SHG Rules
and Regulations should be written in the meetings Minutes or Resolution Book.
12.Loan AND REPAYMENTS
The recovery percentage should be more than 90%,both in the case of availing loans
from SHG and from external sources.
13.Interest on Loans.
a. It has to be fixed based on the type of loan.
45
46
The Animator and Representatives will The Animator and representatives will
co- ordinate and guide the SHG not give responsibilities to all members.
members
The problems of the members are The members
collectively discussed and the final problem move
solution is found out
discussion.
Participation is low.
Improper
meetings.
are aware of
documentation
of
the
SHG
How to Conduct:
1. The participants are divided into 4 groups.
2. Two groups have to discuss and analyse the facilitation of the Animators and
representatives involved in good SHG s and the other two on the facilitation of the
animators and representatives in weak SHGs.
3. 20 minutes is given for discussion to each group.
4. After the discussion , a detailed report is prepared and presented in the large group.
5. the points for proper facilitation is explained and presented by the facilitator as given
in the Contents.
47
Sl Name Name
.
Of
N of
o the
the
SHG members
Total
Meetin Meetin Meeting
number of g No
g No.
No.
meetings
Date
Date
Date
attended
till previous
month
Meeting
No.
Meeting
No.
Meeting
No.
Meeting
No.
Meetin Tota
g No.
l
Date
Date
Date
Date
Date
11. The facilitator concludes by explaining about items/ points not covered by the subgroups.
Tips to the facilitators: Explore among the participants the various methods/ styles of
writing a Meeting Minute Book.
Possible Variations : Conduct a mock SHG- meeting and ask the participants to write the
minute of the meeting.
Learning Indicators :
1. Ask each participant to write proceedings of one meeting.
2. Ask participants to share their learning.
TOPIC:12 Developing/Evolving Rules and Regulations for SHGs
Objectives
1. To enable the participants to develop/evolve the Regulations for SHGs.
2. To make the participants understand the need for Rules and Regulation for their SHG
Pre session preparation
The facilitator has a general guide list of Rules and Regulations for the SHG.
Contents
1. All members should attend the SHG meetings regularly.
Meeting continuously will help them to know the agenda of the previous meeting,
matters discussed, contents of the meeting and formalities to be followed during the
meeting.
2. Conducting SHG meeting weekly
If the meeting is conducted in less interval the main objective of forging the unity
among SHG members is not easily achieved, Hence the need to conduct weekly
meetings.
3. Fixed date or day for SHG meetings.
To facilitate the members to plan their routine work in advance, so that they can
attend the SHG meeting.
4. Common place to conduct meeting/training.
The members will express their view on issues without any fear or hesitation since
they have assembled in a common lace.
5. Participate in all SHG related meetings/trainings.
a. To know about the new Government Programmes.
b. To know in detail the activities & plans of their own SHG.
c. To make the members responsible to attend meetings & trainings.
6. Savings should be done at all meetings by all members.
This helps them to inculcate in them the habit of regular savings.
7. Having the needed Books of Accounts and other books & updating the same
immediately.
a. If the cash book is kept updated daily the total balance shall be known at once on
sight.
b. Gist of the previous meeting is known through Meeting Minutes Book.
c. If the loan Ledger is on hand outstanding remittance and dues of individual
members and that of the total of the group can be ascertained.
d. Receipts can be immediately issued to the members who are remitting cash, if the
Receipt book is on hand.
e. Faith of members in their SHGs is increased.
50
8. Joint A/Cs opened in the name of SHG with two Representatives and the Animator as
signatories on rotation basis for one year.
a. Avoids the operation by an individual signatory.
b. Each member knows the banking operation since the signatories are elected by
rotation.
c. Removes the inferiority complex among the members.
d. Avoids single leadership in the SHG.
9. Collected money collected is deposited immediately into the Bank, the safety of
money is assured.
10. Periodical Audit of the SHG at least once in a year.
a. Errors in the Books of Accounts is known.
b. Quantum of overdue loan is known.
c. Since the expenditures are restricted, unwanted expenses shall be reduced.
11. Volunteers for Health, Education, etc from the SHG.
Opportunity is created for the SHG members to emerge with awareness in the
Society.
12. Violating of Rules & Regulations of SHG
SHG collects fines from the members for late coming, non repayment of SHG/Bank
loans as per the schedule, involving in anti-social activities, bad habits like chewing
tobacco etc. These conditions will help effective functioning of the SHG and bring
discipline among its members.
13. Using democratic principles for office bearers selections.
SHG representatives should be decided unanimously with consensus, so that there is
no partiality in selecting the representatives.
14. Rotation of leadership.
The leadership qualities of all members is brought out.
15. Eligibility criteria is fulfilled to become an SHG member.
a. To build a homogenous group for the effective functioning of the SHG.
b. The interest of SHG members is common.
16. An SHG should become a member of a Apex Body/Federation.
a. It helps the SHG to find out financial resources, and to participate in other social
development projects.
b. Planned action and continuous function of the SHG becomes possible.
17. SHGs should work for the development of its members/village/community.
a. To get the recognition from the community.
b. To create awareness among the community to make use of the available local
and natural resources.
18. Maximum rotation/utilization of available SHG money/Common Fund.
a. To met the consumption and productive needs of the SHG members which will
result in their improved living condition.
b. To raise the amount in Common Fund so that all the SHG members get the
opportunity of obtaining loans.
19. SHG functioning as a model for others E.g. Education, Health, Environment etc.
a. On seeing the educational improvement of the children of SHG members, children
of other non SHG members will get motivated.
b. Various types of vaccinations, preventive and curative measures of is made know
to all and enable them to use them.
c. Since the environment is protected, future generation is benefited and it avoids
the over exploitation of natural resources.
20. Verifying assets create by members.
a. To avoid the mis-utilisation of assets by the beneficiaries.
b. To ensure, the beneficiary makes the maximum utilization of the assets so that
there is increase in income.
21. Independent functioning units.
51
The SHG should function independently without the domination of the Animator. The
Ideology of anticipating NGO should not be imposed on the SHG.
22. Equal right to all members, no religious or optional interference.
a. Avoids the inferiority complex of the members.
b. There is less chance for disputes.
23. Participatory decision making and problem solving on their own.
To enable every member to participate in formulating resolutions and finding solutions
to the problems through which the capacity on decision making and no preventing
measures to check the problem among members are developed.
24. Awareness on SHG financial transactions.
a. Awareness should be developed so that they will demand for Receipts in their
daily transactions outside.
b. There will be not be any mis-appropriation or mis-utilisation.
25. Amendment of rules and regulations by SHG as and when required and applicable for
all the members benefit.
Rules and regulations should be implemented usefully to give more benefit to the
members but not coming as a hurdle in the functioning of the SHG.
26. SHG should plan for the future and work accordingly.
Annual Action Plan of the SHG should be made with long term vision so that each
member collectively work for the achievement of it.
27. Mobilising outside resources from Govt. Bank, NGOs, etc.
The representatives should approach to receive financial support from the
Government, Bank and NGOs for sustainability of the group.
How to conduct:
1. Divide the participants into 4 groups.
2. Ask them to discuss the Rules and Regulations that has to be framed and followed by
SHG members in meetings.
3. Allot 15-20 minutes for discussions.
4. Each group can present the Rules and Regulations of SHG in the large group.
5. The Facilitator can make the consolidate list of Rules and Regulations following the
presentations made by all sub-groups.
6. The facilitator can ask the participants for clarifications or explanation if needed.
Tips to facilitators:
Ensure all the rules framed are realistic in nature and are not coming as hurdle in the
functioning of the SHG.
Possible variations:
Elicit the Rules and Regulations of SHG from participants in the plenary.
Learning indicators
Conduct a quiz programme to know the knowledge of Rules and Regulations of each
participant.
53
2.The facilitator asks the two groups to list their roles & responsibilities in their
subgroups.
3.After 10-15 minutes the facilitator allows the sub groups to report the points which is
refined in general group or plenary.
4.The facilitator can cross-check whether the responsibilities mentioned in the
Contents is brought out by the participants.
5.The facilitator then sums up the discussion.
Tips to facilitators :
larger group.
5.The facilitator explains clearly with examples, the reasons for rotation of leadership.
Tips to facilitators
The facilitator emphases the rotation of Representatives is mnst for all SHGs.
Possible variations :none
Learning indicators
Each participant is able to tell the need and importance of Rotation of Representatives.
Tips to Facilitators : Differentiate properly between the savings by the rich and the poor.
Possible Variations :The session can be conducted in plenary also.
Learning Indicators :
1. By asking the participants randomly.
2. Asking each participant to write the definition of savings.
1.
2.
3.
4.
5.
6.
How to Conduct :
1.
2.
3.
4.
56
Learning Indicators:
Get the confirmation of the participants by eliciting from them the importance of optional
savings.
Name
Date
L. F. No
Initials of Animator
01.10.97
20.00
20.00
XXX
08.10.97
25.00
45.00
XXX
Note : Columns like savings withdrawal and interest on savings can be include as per the
need.
How to Conduct:
1. Introduce specimen format to the participants.
2. Explain the importance of savings ledger, the various heads and details of the
specimen format.
3. Write each column on the black board and make few entries.
4. Ask the participants to form sub- groups and discuss the importance of Savings
Ledger.
5. The sub- groups makes their presentations.
6. The facilitator consolidates the presentation and summarizes.
58
Rs.2000/-
Rs.500/-
Rs.1000/-
Rs.2000/-
Rs.500/-
Rs.500/-
3.Ask the group members to discuss for about 10-15 minutes and decide as to whom
the loan should be given. Once the discussion is over, ask the group to give the final
decision.
59
4.The facilitator asks the group the reasons for the decision taken.
Tips to facilitators:
The facilitators have to be through on the criteria of giving loans in the SHG.
Possible variations:
Ask the member form an experienced SHG to share their experiences in giving loans.
Learning indicators:
Asking the member form an experienced SHG to share their experiences in giving loans.
Contents :
1. The SHG decide about the name of the Bank and Branch, in which the savings Bank
A/c of SHG is to be opened.
2. The SHG pass a special resolution mentioning the authorization of opening of SHG
savings Bank A/c in a particular Bank Branch and the SHG SB A/c will be operated
jointly by the Animators and any one or two of the Representatives.
3. The account opening form is to be filled in and signed by the Office Bearers of the
SHG with seal.
4. The introduction in the A/c opening form is signed by the NGO/ PIU
5. The office bearers make two copies of passport size photos and at the back of the
photos the office bearers write their name and put their signatures.
6. The specimen signature card is filled in by the SHG and signed by the office bearers
with seal.
7. The SHG representatives fill in pay in slip and sign the slip with seal.
8. The SHG has a normal amount of cash for the initial deposit.
9. The SHG call on the Branch Manager and produce the following :
a.
b.
c.
d.
e.
f.
Contents :
1. Cash book is the day book of the SHG
2. Cash book reflects the Receipt and Payments of a SHG.
3. Cash book should have the following columns.
4.
5.
6.
7.
Date
Particulars/ Details
Receipt No
Voucher No
Ledger Folio
Receipts (Debit)
Payments (Credit)
After the SHG meeting , the Cash Book has to be updated.
Cash book has the opening balance and closing balance.
Every month it should be tallied and discussed with the SHG members.
Cash book should be written legibly.
How to Conduct :
Explain in detail about the Cash Book as given below regarding the different columns and
other details in the Cash Book.
A. Date (1) : This is the date of the collection of Cash from the members during
the meeting. This can be referred from minutes book, Saving Ledger, Loan
ledger etc.
B. Details / Particulars (2) : This column is second column of Cash Book which
gives the details of the transactions (Receipts and Payment heads) and who
has received / paid along with their names.
C. Receipt No (3) : the receipt is the third column of Cash Book in which a
Receipt given by SHG to the Payee, is reflected along with the serial number.
In order to refer easily, Receipt number can be put. Whatever money comes
to the SHG, they have to give Receipt E.g. Savings, Subscription, Loan
recovery, Fine, Bank Loan and Interest, Donations etc.
D. Payment Voucher No (4) : This is fourth column of Cash Book. While making
payment by SHG, it has to be mentioned and the number is entered here e.g.
SHG and Bank Loan, Payment of Honorarium , Expenditures like stationeries,
bus fare etc.
E. Ledger Folio : This is fifth column of the Cash Book. This is folio allotted to
each member for savings and loan operations. This can be referred from
Savings Ledger and Loan Ledgers.
F. Receipts : This is the sixth column of Cash Book in which is given the amount
of Receipts of SHG like, Savings, Opening Balance, Subscriptions, Loan
recovery, Loan from Bank, Interest , Fine , Donations etc. Every month it
should be closed and tallied properly.
G. Payments : This is the Seventh column of Cash Book register, which
represent all entries of payment. Every month it should be closed and against
the Receipt. It also reflects that cash on hand and Cash at Bank are equal.
2. Divide the participants into sub-groups.
3. Conduct a dummy exercise as follows:
Cash Book Dummy Exercise :
Date
DTLS
Rcpt.
Paymts
No.
No.
62
Ldgr
Folio
Rcpt
(DR)
Paymts
(CR)
RMKS
Ldgr
Folio
Rcpt
(DR)
Paymts
(CR)
RMKS
Subscriptions :
Names:
SHG Loan Recovery Principal:
Names :
SHG Loan interest income :
Names
Fine :
Names:
SHG Loan given :
Names
Group maintenance Fund record. From Bank:
Names
Loan from Bank (A.H.)
Names
Bank loan given to :
Names
Bus fare :
By Bank interest :
Income:
Closing Balance:
TOTAL:
Balance carried down : Cash in hand Rs:
Cash at Bank Rs:
TOTAL :
Signature of the Animator
Note :
A. The above mentioned entries frequently occur in the SHG.
B. This dummy exercise is shown as how to begin and close the balance.
4. Help the participants to fill- up the specimen formats of Cash Book.
5.Explain the specimen formats and repeat the entire exercise of filling up the specimen
format to make sure everybody can write the Cash Book properly.
Tips to Facilitators :
1. Ensure that each participant fills in the specimen formats properly.
2. NGOs may have different versions/ methods of writing the Cash Book . However , it is
suggested to follow the Double Entry System.
Possible Variations : None
63
Learning Indicators
Ask the participants to fill up the specimen format of the Cash Book individually.
Date:
Receipts
We received from XXX towards the following :
i)
ii)
Particulars
Savings
SHG Loan Recovery
Rs
a) Principal
b) Interest
iii)
iv)
Total : (Rupees..only)
Signature of Animator
Signature of the Member
SHG.
Note : Please raise separate receipts for each of the above 4 receipts .
4.
5.
6.
7.
64
Payment Voucher
Voucher No:
Date
Paid to Sri/ Smt.. a sum of Rs 2000/- being the cost of a loan from
SHG (Rs..only)
Sign of the Leader/ Representative
Receiver
Revenue
Stamp
Sign of Loan
If the loan amount is more than Rs 500/- the loan receiver should sign on the
revenue stamp.
Village:
Particulars
Membership fees
Share capital
Savings
Others
Amount
Total
Community Activist:
President/ secretary/ treasure
65
Contents :
1. The General Ledger is maintained to record the total transactions under each heads
in a separate folio meant for that particular heads.
2. It is useful for balancing of ledgers and is used to know the consolidated position
under various heads viz. savings, SHG- loan issue, interest collected etc.
How to Conduct :
1.
2.
3.
4.
5.
6.
7.
Tips to Facilitators : Explain with the help of a well maintained General Ledger.
Possible Variations :The facilitator can explain about General Ledger in an Input Session.
Learning Indicators :
Ask few participants to explain the importance of General ledger and its uses in a SHG.
Some additional proforma :
General Ledger Proforma Index :
Sl.No
Head of Account
66
To
CA honorarium
VO office rent account
VO representatives travel expenses account
Miscellaneous expenditure account
Particulars
Cash Book
Page No.
Receipt
Amount
Payment
Amount
Balance
Amount
67
Saving Amount
Cumulative Amount
Initial of Animator
Date
Loan repaid
Balance
OUT/ STD
Initial of the
ANIM/ REP
6. Explain the various heads and details of the format and make a few entries on the
board/ chart paper.
7. Enable the participants to make entries on the individual Pass Book.
8. Conduct a Dummy exercise again in sub- groups by giving a case study.
9. The facilitator has to check the entries made by the participants by going around the
participants.
10. Repeat the entire exercise of filling up the specimen format if needed.
Tips to Facilitators : None.
Possible Variations:
Conduct the Dummy exercise in sub- groups and ask the members of the sub- groups to
correct each other.
Learning Indicators :
Call the participants at random to the board or chart paper and ask them to make entries
under different headings.
TOPIC: 27 Insurance Register
Objectives
1. To make the participants aware of the importance of Insurance Register in a SHG
2. To enable the participants to write the Insurance Register.
Presession preparation
1. Model books of Insurance Register.
2. Specimen formats of Insurance Register.
Contents: nil
How to conduct:
1. Explain the purpose of maintaining Insurance Register in a SHG.
2. Introduce the specimen format of the Insurance Register in the plenary.
3. Distribute the specimen format to all the participants.
Specimen format :INSURANCE REGISTER
SL NO.
68
DATE
INSURANCE
POLICY NO.
NAME OF THE
MEMBER
ASSETS
INSURED
INSURANCE
PREMIUM
LOSS
ASSETS
OF
EXPIRTY
DATE
CLAIMS
SUBMITTED
DATE
4. Explain the various heads and columns of the Insurance Register by writing on the
board or chart paper.
5. Make few entries in the specimen format.
6. Conduct Dummy exercise, by enabling all participants to make entries in their
specimen formats.
7. Check the entries made by the participants in the specimen format.
8. Repeat the entire exercise of writing Insurance Register specimen format if needed.
Tips to facilitators: none
Possible variations
Conduct the mock exercise in sub-groups, to enable the participants of sub-group to check &
correct the entries made in the specimen formats.
Learning indicators
1. Call participants at random to make entries of the Insurance Register
specimen format on the board/chart paper in the plenary.
2. Give individual exercise of filling up the specimen format to all the
participants.
TOPIC:28 Annual Action Plan (AAP)
Objectives:
1.To make the participants realize the importance of preparation of Annual Action
Plan in a SHG.
2.Facilitate them to prepare a model ANNUAL Action Plan for a SHG.
Pre-session preparation:
The facilitator has a model annual action plan.
Contents:
1.annual action plan means planning the activities for one year.
2.annual action plan will help to organize the necessary support required from internal
& external sources.
It will help to understand the various activities carried out by a shg over a period of
one year.
4.it will enable the shg members to be aware & prepared for the successful
implementation of the activities.
69
5.it is useful fot the proper & better allocation of resources (fund & materials to carry
out the activity.)
How to conduct:
1A mock exercise on AAP has to be conducted by a seasonal diagram.
1.The sub group are asked to choose a convenient place.
2.Explain about the exercise
3.Elicit and depict the local calendar on the ground on chart papers.
4..The twelve monthes of the local calendar could be written or depicted through
appropriate symbol indicating the significance of the month.
5.The participants in their respective sub groups have to discuss about each
characteristic of a good SHG and proper Action Plan for one year.
6.Each characteristic can be depicted through symbols/ written form.
7.On completion, the Annual Action
paper (if it is done on the ground)
8.All the sub groups present their AAP in the larger group.
9.The facilitator consolidates 7 presents an Annual Action Plan for a model SHG.
Tips to facilitators:
The facilitator has to conduct a quiz programme to enable the participants to
recapitulate the characteristics of a good self help group to enable to prepare as aap.
Possible variations:
As sample annual calender of events can be prepared by having discussions in sub
groups.
Learning indicators:
Ask each participants to prepare a sample Annual Action Plan for their SHG
70
Increase in overall awareness level about their status and approaches for
development.
With the above background it has become convenient to consolidate the Self Help Groups
already developed in the State into village organization and other federations. However ,
critical gaps have been observed in the management of day to day activities of the Self Help
Groups relating to different group dynamics, organizational management, financial
management, arrangement of livelihood activities, internal monitoring, accountability etc.
Intensive and extensive training programmes involving community resource persons,
coordinators etc. will have to be organized existing as well as new Self Help Groups, so that
village level organizations can be conveniently formed with the help of these groups.
Challenges:
There are certain pockets, section of people where women have some inhibitions and
problems to join the Self Help Groups. In Districts like Barpeta, Dhubri and in chaar areas,
where women are in social and familial proscription to participate in the Self Help Groups.
There are certain tribes in remote areas having similar problems to overcome for joining to
Self Help Groups. Some of these obstacles observed in different pockets of the State are as
follows:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
Role of External and Internal CRPs to ensure womens participation and institution
building:
Special effort and strategies will have to be made to motivate excluded women to come into
the fold of Self Help Groups.
External and internal CRPs will sensitize rural women as to why their participation
and joining in the Self Help Groups is essential. CRPs will motivate the excluded women to
join Self Help Groups highlighting the following needs for their participation in the Self Help
Group movement.
Why womens participation is needed:
People must realize, feel and own the programme.
To solve problems of common interest to all in the community.
To achieve sustainable development of the people , by the people and for the people.
71
72
CHAPTER 5
COMMUNITY RESOURCE PERSON STRATEGY (CRPs)
CRPs are active women members who have come out of poverty with the help of her
SHG.
SHGs
they
belong
to
should
have
strong
and
mature
management
Have good articulation and communication skills along with leadership skill and
relevant experiences as members in their groups, accessed and successfully repaid
multiple doses of loans and improved their livelihood activities and standard of living
Have the ability and skills to organize training programmes for the community by
drawing lessons from their personal experiences and the best practices of their SHGs
73
and the ability to use their folklore in the trainings and facilitation for motivating the
poor women.
CRP Team composition:
CRP team comprises 3women members and 1 Sr. Book keeper and 1 Community
Activist/Animator from Village Organization
Crucial Role of the CRPs in the Blocks:
The CRP teams will meet village leaders, panchayat functionaries and explain about
the approach.
Organise meeting of the SHGs and excluded poorest of the poor to have a study of
the status of the SHGs and the poverty related issues in the villages.
Form groups with excluded poor and poorest of the poor women.
Impart training on preparation of micro credit plan and facilitate preparation of the
same.
CRP Strategy:
The CRP strategy is a community to community learning approach. The SERP Project in
Andhra Pradesh has developed and practiced the CRP Strategy for social mobilization,
capacity building and scaling up of various processes within the project. The BRLP project in
74
Bihar has involved external CRPs from SERP, Andhra Pradesh and later the internal CRPs
from older locations were involved for social mobilization which showed a great success in
the State. Therefore, ASRLMs has also adopted the CRP strategy for social mobilization and
institutional building process in the State.Two types of CRP strategies has been taken. One
with the support of External CRPs in partnership with SERP, Andhra Pradesh and the other
is internal CRP developed in the resource blocks/other intensive blocks of the State. The
internal CRPs will be in field with the External CRPs of SERP where they will be trained up in
the areas of institutional building and social mobilisation. Then they can be deployed as
internal CRPs for the block to whom they belong and as External CRPs to the other blocks of
the state to mobilize women to form groups and to revive the defunct groups.
The great advantage of the CRP Strategy is that the CRPs are able to form many groups at
very shorter span of time due campaign approach and motivate other poor through sharing of
own experiences. But down side of this approach is that CRPs have no clear strategy and
focus to select poor, no clear method is used except physical observation of people and their
living conditions.
75
1 Cluster
1 Cluster
Coordinator in
each Cluster
1CRP team
10 villages
76
9. Facilitates groups to identify Bookkeepers from the literate persons and conducts
intensive handholding training on SHG-Bookkeeping.
10. Update the records of the existing groups and prepare a financial status report and
presents it to the members.
11. Facilitate Leadership rotation in the groups where same members continue for long
years.
12. Identifies two good working groups and give training to the members to prepare micro
credit investment plans.
Activities in the Resource Block in 1st year:
CRP team conducts trainings at group level, forms new groups, revives defunct
groups and strengthens existing groups, trains SHG-Bookkeepers, facilitates micro
credit plans as per 30days action plan for Village.
1 PRP anchors CRP strategy in 2 Clusters.
During the Village visit of the CRP team the Block and District level staff ,CVs etc. will
stay in the same Village & under go immersion.
During the Village visit the CRP team picks up women activist from the Community &
associate them in trainings and facilitation of SHGs.
Resource Agency will conduct immersion & intensive training to the women activists
in its Villages to expose them to best practices in social mobilization & SHG formation
and Management.
SRLM will conduct monthly startup and feedback meetings at Dist./State level to
access the work done by the CRP teams and the outcomes achieved by them in each
Resource Block.
In the remaining blocks , no of external CRP teams and rounds(internal CRPs developed in
the resource block will be external CRPs for the other blocks)in each block in a year will
depend on size and nos of village to be covered and nos of SHGs to be formed. It may
increase and decrease as per requirement.
Social mobilisation and institutional building with the help of external CRPs
approach and sequences:
The social mobilisation and institutional building process with the help of external CRPs will
start from the Gram Panchayats having highest incidence of poverty in each selected
resource block.
77
Within the selected Gram Panchayat having highest incidence of poverty in the block, five
villages will be taken up to start the social mobilisation and institutional building process with
the help of external CRPs. Following variables will be taken into consideration while selecting
the villages.
Vulnerability of the households due to various socio economic factors e.g. high
percentage of SC/ST population, woman headed households, etc.
External CRPs will interact with internal CRPs selected and trained up through
immersion process will develop strategy for social inclusion and development of
SHGs covering excluded families belonging to marginalised sections in the selected
five villages.
The five selected poorest of the poor villages with high incidence of poverty and
social exclusion so selected to start the process of institutional building will become
epi centred where from the process will move on to other villages in the Gram
Panchayat.
Internal CRPs will get the external CRPs acquainted with local traditions, customs,
factors of social exclusion, causes of poverty and backwardness, status of women,
status of social mobilisation already made in those particularly villages to facilitate the
process of group development.
The community resource persons will establish effective communication with local
communities. Internal CRPs will adopt various local methods for establishing rapport
with marginalised excluded households of the society in those villages.
CRPs will interact with local panchayats, leaders, field officials, members of old SHGs
etc. to roll out the process.
Not all community members are equally knowledgeable in the villages. Some have
more knowledge than others. Community resource persons will identify such
informants to facilitate the social mobilisation process. Key informants will clarify
issues and help in cross checking primary and secondary information collected by the
CRPs.
Secondary and primary information required for institutional buildings of the villages
will be collected by the CRPs to facilitate the process.
Besides having secondary information on the families living below the poverty line the
CRPs will undertake participatory assessment of poverty for social inclusion and
institutional building.
78
Developing a cadre of CRPs among the active members of existing good groups in
the process.
The social capital of internal CRPs so created will continue to work in the various
villages for institution building process.
As external CRP strategy will not be able to cover all the villages of the
Gram
Panchayats internal CRPs so developed in the process will cover non external CRP
villages of the blocks for institution building.
A cadre of internal CRPs including book keepers will emerge to carry forward the
social mobilisation and institution building process in other villages.
Community Activist/ Mobilizers are the person hailing from poorest of the poor
and poor household. Community activist/Mobilizer should be a resident of same
village and have studied at least upto class X and within the age group of 25 45
years.
The cluster coordinators are the rural educated youth(minimum 12th pass) having
the willingness to work with poor .
The CCs will anchor the CRP strategy in their respective Cluster and follow up all
the activities done by the CRPs.
They must be willing to work with poor members of the groups and given them
utmost respect.
79
They should have the capacity to under go training to know about various
government programmes, institutions and their services to make SHGs aware
about those programmes and services.
The block coordinators along with Extension Officer (Credit) (the nodal officer at the
block level responsible for the implementation of SGSY) will coordinate the entire
external and internal CRP strategy at the initial months. He will create an enabling
environment for the process.
They will chalkout a field level action plan for the CRP in consultation with all
concerned and ensure continuity of the process without any hindrance. He will
maintain close coordination with the state team.
They will take care of all the logistic arrangements for the external CRPs and adopt a
well chalked out strategy to make them familier to the local people and situation.
BCs along with Extension Officer (Credit) and other supporting staff will arrange
awareness programmes in the villages to sensitise rural people about the new
approach.
All the required information, data of the villages including the status of the existing
SHGs will be made available to the external CRPs by the BCs/Extension Officer
(Credit) and his supporting staff to facilitate the social mobilisation and institution
building process.
Extension Officer (Credit) will take steps to converge the social capital already built
over the years into the learning process and also to facilitate the institution building
process with their support services.
BCs will keep track, coordinate and ensure that a cadre of well trained internal CRPs,
book keepers, mobilisers is built up during the external CRP rounds so that institution
building process can be carried forward smoothly afterwards. Identification of good
women leaders from his long field experience to build them as internal CRPs will be
his crucial responsibility.
BCs will document the process and prepare reports on the progress for onward
submission to the NRLM state office.
80
CHAPTER 6
COMMUNITY INVESTMENT SUPPORT
Community Investment Support acts as a catalyst in capital formation at all levels including
SHG,VO and BLF and offers great leverage for raising bank funds. It is also acting as a
catalyst in promoting institutions by facilitating members in fund and loan management, book
keeping and regular follow up and recovery. For eradication of poverty strong self managed
institutions of the poor is essential. So in the interest of creating self managed institutions the
VLF,BLF should be allowed to manage the Community Investment Fund entitled to them .
The comprehensive micro planning model adopted in other best practices States as agreed
by World Bank has shown the good result in the corpus building at various stages including
SHG,VO and BLF. So, ASRLMS has decided to follow this comprehensive micro planning
model agreed by World bank which envisages upfront release of certain portion of
Community Investment Support to BLF on certain conditions besides VLF.
81
82
SHG
member
Appraisal of micro
credit plan submitted
by SHGs to VO.
Sanction of
the loan by
VO.
Micro credit
plan of SHG
member.
SHG loan
application on the
basis of micro
investment plan to
VO.
Release of
loan to
SHG by
VO.
Prioritisation of
members for
loan at SHG
level.
SHG micro
investment
plan.
Loan to
selected
members
from SHG.
83
Sl no.
1.
Livelihood
Intervention
1.1
Agriculture Intervention
1.1.1
MCP based financing to SHG members
MCP based Individual SHG
members
for
Livelihood Fund
household level assetisation
,facilitate access to Credit
from banks and other
sources, fulfill the financing
need for existing agriculture
based livelihood activities
,supporting initiatives for
mitigation of livelihoods
risks including death due to
crop failure and natural
calamity etc, disability and
asset
replacement
insurance.
1.1.2
Community
based
Livelihood Investment
Fund
84
Who will
Beneficiary
be
Group
of
SHG
members of Similar
Activity. Livelihood
collectives
and
producer
groups/SHG
Federations
Nature of Fund
VLF
will
submit
UC
to
BLF/BMMU (till BLF starts
working) on the basis of Grant
given to SHG members and
Loan assets created at VLF
based on MCP of the Individual
SHG
Grant to VLF/BLF,
VLF will give loan to
SHG .SHG will give it
as loan to SHG
members. In case
initially if BLF is not
formed, grant will be
given through VO.
Grant to BLF/VLF
,BLF/VLF will give
Loan/Grant
to
SHG/Livelihood
collectives/ Producer
groups.
In
case
initially if BLF is not
formed, grant will be
given through VO.
Animal Husbandry
85
VLF
will
submit
UC
to
BLF/BMMU(till
BLF
starts
working) on the basis of Grant
given to SHG members and
Loan assets created at VO
based on MCP of the Individual
SHG
Grant
to
VLF/BLF,VLF
will
give loan to SHG .
SHG will give it as
loan
to
SHG
members. In case
initially if BLF is not
formed, grant will be
given through VO
Group of SHG
members
of
Similar Activity.
Livelihood
collectives and
producer
groups/SHG
Federations
Grant
to
BLF/VO
,BLF/VLF
will
give Loan/grant
to
SHG/Livelihood
collectives/
Producer
groups. In case
initially if BLF is
not
formed,
grant will be
given
through
VO
Grant
to
VLF/BLF,VLF
will give loan to
SHG . SHG will
give it as loan to
SHG members.
In case initially if
BLF
is
not
formed,
grant
will be given
1.3.1
MCP
based MCP based financing to SHG SHG members
Individual
Livelihood members for household level
Fund
Assetization , to develop their
skills on Non farm sector to
increase
their
existing
livelihoods
opportunities,
facilitate access to Credit from
banks and other sources ,fulfil
the financing need for existing
non farm based livelihood
86
Activities
,supporting
initiatives for mitigation of
livelihoods risks including
death, disability and asset
replacement insurance
1.3.2 Community based Scaling Up certain key
Livelihood
Investment Livelihood Interventions like
Fund
handloom
&
sericulture,
developing their skills on Non
farm Sector to increase their
existing
livelihoods
opportunities, Development of
backward
&
Forward
Linkages , developing local
resource persons as paraprofessionals for providing
technical support and to
assist the functioning of the
SHGs,Partnerships with value
Chain partners , Assetization
at Community Level, common
facility center, Designing New
financial Instruments for poors
to enable them to participate
in extended value Chain.
4.1
87
through VO
Group of SHG
members
of
Similar Activity.
Livelihood
collectives and
producer
groups/SHG
Federations
Grant
to
BLF/VLF
,BLF/VLF
will
give Loan/grant
to
SHG/Livelihood
collectives/
Producer
groups. In case
initially if BLF is
not
formed,
grant will be
given
through
VO
Grant to BLF
and sub grant
to VLF.VLF will
grant to SHG.
SHG will give it
as loan to SHG
members
4.2
BMMU*/BLF/VO(*Till
the
BLF Start working) will give
the UC on the basis of
utilization.
Grant to BLF
and sub grant
to VLF.VLF will
grant to SHG.
SHG will give it
as loan to SHG
members
4.3
MCP
based
financing
extended to the members at
agreed concessional rates
specifically to address the SHG members
food requirement of the group
members
Grant to BLF
and sub grant
to VLF.VLF will
grant to SHG.
SHG will give it
as loan to SHG
members.
4.4
5.
Revolving Fund
88
BMMU*/BLF/VLF(*Till the
BLF Start working) will give
the UC on the basis of
utilization
Grant to BLF
and sub grant
to VLF.VLF will
grant to SHG.
SHG will give it
as loan to SHG
members
Grant to SHG
from
DMMU/BMMU
and SHG will
give it as loan to
SHG members
6.
Capital Subsidy
Grant to BLF
which will give
further Grant to
VO. VO will give
it as Loan to
SHG and SHG
will give it as
loan to SHG
members
Besides above, any other CIS sub-component which is applicable to the respective livelihood activities may be added
89
CHAPTER 7
MICRO CREDIT PLAN (MCP)
Objective:
Poor shall learn the art of forming, strengthening and managing their institutions which over
a period of time shall in position to leverage the institutional strength to mobilize different
financial institutions to provide credit and other support. It is a powerful mechanism to repose
faith in community and facilitate the process to identify their own needs and come out with a
response amidst constrained resources.
Why MCP?
To meet the credit needs of all the members in the group,
To explore the ways and means of development by identifying and assessing the
available social resources individually and group wise,
To meet the temporary and long term needs,
To avail loan facility from other institutions,
To utilize the limited resources in meeting the needs of the members on priority
basis,
To strengthen the capabilities of the individuals and institutions,
To improve the financial management skills.
Eligibility of Groups
Groups formed with the Poor only are eligible.
At least 3 month is to be completed from the date of the inception of the group.
Four meetings is the general norm.
Group should have norms and adherence to the same is required.
Savings should be deposited and Loans should be paid regularly.
Group shall encourage Internal Lending.
The group shall have Bank Account.
Regular Book Keeping is to be done.
Members should have understanding and be aware of the transactions of the group.
Members should know the method of management of the group.
Method for Preparation of Micro Credit Plan
Should be prepared at a place that is agreeable to all the members.
Points discussed at the time of preparation are to be noted down in the Minutes
Book.
In case of Income Generating Activities (IGA), the members should, first, discuss
among their family members, come to a decision and present the same in the
meeting.
Members should act independently and take decisions.
Agreements should be prepared on the lines that are decided by the members and
the institutions.
The uniform installment pattern for all the members shall be discouraged as people
have different sources of cash flow.
Rate of interest on the loans provided for Income Generating Activities should be in
uniform manner.
Installments for repayment of loans:
90
Up to 24 monthly installments
Up to 60 monthly installments
Up to 120 monthly installments
Existing livelihoods - Ways and means to enhance the income through them.
Details of the earnings through the present livelihoods.
To make them think of the opportunities that exists.
To make them aware of the capabilities.
92
Second discussion:
Details of selection of the members that are being given loans in the first priority Procedure
for sanctioning loans on rotation should be discussed in the EC meeting of the VO.
Third discussion:
Members should make the MOU known in the SHG and EC meeting of the VO. The
Leaders of the VO should read out the MOUs in the BLF meeting.
Benefits
SHG members can immediately meet their emergency requirements including that of
consumption purposes.
Taking up Income Generating Activities combining the investment obtained through
Micro Credit Plan with resources and skills.
Can purchase assets utilizing funds on a large scale.
Funds will be distributed not to all the SHGs, but to the deserving SHGs having good
practices. (By this recovery will be done effectively and activities can be taken up
multiple times at a larger scale).
The remaining SHGs will also develop good practices and acquire the skills in
preparing MCP.
Funds will be utilized in an effective, efficient and better manner.
Internal funds will be enhanced.
Information known through MCP
Present status of the family.
Their experience in various income generating fields.
Their experience about the income and expenditure in hitherto taken up income
generating activities. Identified activity, Implementation method, Purchase, Marketing
facility will be known.
Can affirm the additional income for the family through these activities.
Precautions to be taken during unforeseen situations (Insurance, Conforming to the
basic health principles for the cattle, Advice from experts)
Estimation of investment (Personal contribution + Loan amount from the SHG)
Building up the confidence in the activities to be taken up.
After availing loans from the SHG, they invariably will take up the IGA.
Note on Trainings:
1. It will be better and easier if 20 members participate in the training programme.
2. Every 10 members should form one group in the training programme.
3. MCPs should be prepared by dividing into two groups.
4. One group, as if they were the SHG and the other one VO, should explain the MCP to the
other group. The same is to be repeated with the second group also.
5. Two or three best VOs are to selected from one block.
6. Two or three best SHGs are to be selected from one VO and MCP is to be prepared by
them.
7. When the details of the group MCP are explained to the EC of the VO, they will accept the
same. If not, the group has to discuss further, approach the EC of the VO and get approval.
93
7 (seven) Step Process for preparation of Micro Credit Investment Plan 1st Dialogue:
All the members will receive training on 7 step MCP process and go for preparation of MCP.
The SHG members would also like to follow stepwise processes in the preparation of the
plan.
Step-1:
-
SHG Comprehensive Profile:All the members in the SHG meeting will sit together and prepare SHG profile with
the help of Book-keeper.
This will help members and the financing agency to know about the status of the
group.
Following is the profile of SHG:
1. SHG Name :
2. Village Name :
3. No. of Members :
SC
ST
OBC
Others
Total
4. No. of weekly meetings held :
5. Percentage of members attendance :
6. SHG Bank Account Number & Place :
7. Date of starting of the group :
8. Total savings amount :
9. Total interest earned :
10. Total fines amount collected :
11. Revolving fund received :
12. Total group fund :
13. Loans received from other agencies :
Sl. No.
Name of the
agency
Loan
amount
received
Loan
amount paid
%
of
recovery
Over due
Loan
Balance
if any
1
2
3
4
2.
Step- 2:
Member wise Socio-economic Profiles
Sl
.
N
o
All members of SHG will sit together in the SHG meeting and prepare members
socio-economic profile, with the help of Bookkeeper,
This will help to know about the present socio-economic conditions of the member
households.
Member wise Socio- economic Profile
Mem
bers
Name
Age
Caste
Educat
ional
Status
Present
Occupat
ion
Land
Children
Adults
Wet
Male
Male Fem
ale
Fema
le
Dry
House
Hut Tile
roof/
RCC
Livestock
Bulloc Cow
ks
s
Buffaloes Sheep/
Goat
Poult
ry
Others
if any
Poverty Status
POP Poor Not
so
poor
Not
at all
Poor
13
15
17
19
20
21
24
14
16
18
22
23
Members Type
of Food
of
Self Dwelling
Security
Help
Groups
Land
Holdings and
other
Resources
Member 1
Member 2
95
Main
Livelihood
Activities and
coping
mechanisms
Health
and
education and
social
status
and access
Step 3:
Items
Details
Members Name
Husbands Name
Caste
Age
Income
Amount
Sl.
No.
Expenditure
Agricultural Income
Rice (No. of
Kgs Rate
per Kg)
Daal (No. of
Kgs Rate
per Kg)
Other
commodities
Electricity
Charges
Soaps
a. Business:
b. Job:
c. Artisan
96
Amount
Vegetables
Festival expenditure
Housing
Meat
10
Children Education
11
Travelling expenditure
12
Health expenditure
13
Clothing expenditure
14
Fuel
15
Agricultural expenditure
16
Others
Total
Total
Step- 4:
2nd Dialogue:
Preparation of Micro- Credit Investment Plan indicating member wise activities
proposed, financial costs and repayment schedules.
After preparing member wise income and expenditure statements, all the members of
the SHG wish finalize micro credit investment plan. For this purpose the members would first
prepare their family Investment plans at House Hold level by discussing with their family
members about the individual activities, estimated costs members contributions, estimated
incomes out of the proposed assets and the repayment schedules. After finalizing the family
Investment Plans at Household level, the members will prepare Micro credit Plan Indicating
the activities and the financial costs in the following manner.
97
S
No.
Name of
the
Member
Husband/
Father
Name
Activity
Proposal
Total
Loan
Amount
required
for
the activity
Members
contribution
Expected
Loan portion
from
the
Agency
Estimated
monthly
income from
out
of
the
asset to be
created
through loans
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
98
Estimated
Expenditure
No.
of
Install-ments
for
repayment of Loan
10
Installment Amount
Remark
s
Principal
Interest
Total
11
12
13
14
Step- 5 & 6:
3rd Dialogue with VO/ Financing Bank
After preparing micro credit investment plan in the SHG meeting all the members will
approach the VO and present the plan to the Village Organisation Executive Committee. The
Village Organisation after scrutinizing the plan if satisfied will indicate approximately the
possible loan amount that can be funded from CIF. Based on the indications given by the
Village Organization, as the indicated amount is less than the total cost proposed in the plan,
the Village Organization Executive Committee will request the SHG members to prepare two
plans. One plan for prioritization of the members based on the indicated amount and second
plan called rotation plan for the coverage of the remaining members keeping in view the
expected recoveries and the balance amount available after repaying VO Loan including
terms of partnerships between Member and SHG. In case the plan is presented to the bank
same approach will be followed keeping in view the amount of loan indicated by the bank.
As per the indications given by the VO/Bank the SHG members will conduct their
meeting again where all members will participate and both prioritization plan and rotation
plans are prepared in detail. Then the SHG members will approach the VO/Bank and
present their prioritization plans and rotation plans along with terms of partnership agreed
between SHG and its members. In the meeting they will also finalize the terms of
partnerships between SHG and VO.
(5) Prioritization Plan:
SNo.
1
2
3
4
5
6
7
8
9
10
11
12
13
99
14
15
Step 7:
(A) Terms of partnership between members and SHG.
1. All members shall attend the weekly meeting of the group regularly.
2. Members shall repay the loans in the agreed instalments as per the micro credit
plan both principal and interest.
3. All the assets purchased out of loans shall be got insured by the members.
4. Assets purchased out of loans shall be shown for verification by the non-loanees
Committee appointed by SHG.
5. The non-loanee members committee at the time of verification of the Assets shall
find out whether the value of the Assets purchased is proportionate to the loan
amount taken by the members.
6. The loanee members shall purchase the assets within 15 days after the receipt of
the loan amount. Incase, they fail to purchase the assets with in 15 days, the loan
amounts shall be returned to SHG without fail.
(B) Terms of partnership between SHG and VO.
1. The SHG representatives shall attend VO meeting regularly.
2. The SHG should repay the loan instalments as per the agreed terms to the
VO in the VO meeting.
3. The SHG shall ensure that the loan amounts are utilized by the members for
activities as per MCP.
4. The SHG shall ensure to the VO that all the livestock assets were got insured.
5. The SHG members shall show the assets to the VO assets Verification
Committee during their visit.
6. The SHG shall utilize the services of activists and para-professionals of VOs
and BLF for improving the quality of their assets.
Criteria for Sanction of CIS
In
the
BLF
RGB
meeting
the
VO
is
VO and SHG present MCP in the BLF RGB Block Level selected
for
MCP
meeting and evolves ToP between VO and Federation
preparation
based
on
Block Level Federation in the meeting. It is
certain criteria for VO
called Fourth dialogue.
SHG presents micro credit plan in the VO EC
meeting along with ToP between SHG and
members in the second dialogue and presents Village
MCP with prioritization plan, rotation plan, and Organisatio
ToP between SHG and members and evolves n
ToP between SHG and VO in the third
dialogue.
100
CIS Management
Interest Rate
Repayment period
BLF
Installments
6%
VO
VO
VO
VO
Village Organisation
50-60 Monthly
Installments
9%
SHG
SHG
SHG
SHG
Self Help Group
20-24 monthly
Installments
12%
Members
Members
(Members)
101
102
Project
Objectives, core
values and nonnegotiables
Duration
Methodology Participants
Training
Members
Trainer
Charts
Day
Interactive
Lecture
method
Community
Brown
members
/ Sheets
Staff
Markers
Community
Trainer
Note Books
Pens etc.,
2
Charts
Interactive
Lecture
method
What is Micro
Credit Investment
Plan
Community
Brown
members
/ Sheets
Staff
Markers
Community
Trainer
Note Books
Pens etc.,
Advantages
of
Micro
Credit
investment Plan
Charts
Criteria
for Day
selected for VO
for MCP
Interactive
Lecture
method
Criteria
for
selection of SHG
for preparation of
MCP
4
Community
members
/ Markers
Staff
Note Books
Community
Trainer
Pens etc.,
7 Step process in
the Micro Credit
investment Plans.
First 4 steps
Brown
Sheets
Interactive
Lecture
1 Day
Charts
Brown
method and
Sheets
Small group Community
members
/ Markers
discussion,
Staff
Note Books
and
presentations
103
Pens etc.,
Community
Trainer
CHAPTER 8
LIVELIHOOD INTERVENTION
In each block there will be 4 block coordinators. After immersion and training the block coordinator will be involved in the social mobilisation process in the block level and
subsequently after completion of one year, they will be engaged in the BMMU in their
respective thematic areas social mobilisation ,Institutional Building & Capacity Building,
Livelihoods, Skill Development & Placements, Financial Inclusion & Social Development. In
Assam context, Livelihood coordinator is more appropriate to roll out livelihoods
interventions in agriculture, animal husbandry & non farm sector with the active involvement
of the Village level federation/Block level federation and community people in each
intervention. The Livelihood coordinator will train and develop a cadre of livelihood CRPs
and Para professionals for scaling up of livelihood interventions and responsible for
producing Village Livelihood Plans containing the details of current livelihood of SHG and
their member HH and potential opportunities, range of activities in marketing support
includes market research, market intelligence, technology extension, developing backward
and forward linkages, building livelihood collectives and supporting their business plans.
Approach:
Livelihoo
d
Micro
Plannin
g for
Liveliho
Surve
y in
the
Study of
the village
huts/baza
ars for
establishi
ng
backward
and
Forward
Study
on
availabil
ity of
Identificat
ion of
best
practices
on
Livelihoo
ds for
upscalling
Identific
ation of
critical
gaps in
liveliho
ods
promoti
on
Prepara
tion of
Micro
Credit
Mapping
Field
ods
markets
Plan
7.1.LIVELIHOODS PROMOTION
Planning and selection of activities for livelihoods:
Management of income generating activities for livelihood at Self Help Group level needs
proper planning. Selection of the right activity plays an important role in their sustainability.
In identifying livelihoods the Self Help Groups will be guided to keep in mind the
following questions :
Could they make the product themselves? If so, were raw materials and other inputs
for production locally available ?
Would it be possible for them to sell the product themselves or through other family
members at haats?
After noting selling prices, could they sell their product at competitive prices?
104
Micro Planning :
Micro Planning for selection and management of income generating activities covers field
level surveys. These include:
(a) Collecting village information like resources, infrastructure, support services, skill
available.
(b) Preparing profile of the existing group members engaged in different activities,
including information relating to availability of raw materials, markets and problem
faced by them in managing the activities.
(c) Survey of the village haats to prepare haat profile covering location, timing, products
sold etc.
(d) Preparing sellers profile covering type of business, mode of sale, purchase of
products, seasons for trade etc.
(e) Preparation of buyers profile covering products purchased, new products desired,
resons for purchasing from the haat etc.
Above surveys will help the Self Help Groups to identify livelihood activities ,their
existing status, number of existing units, availability of raw material and other essential
support services, market position and skill required. This analysis will help the Self Help
Groups to identify the activities to be taken up for their livelihood.
The following factors will be kept in mind while preparing the Micro Plan for
Livelihood Activities:
The geographical area for a micro enterprise which would have its own infrastructure,
raw materials , market linkages and sources for finance.
The characteristics of the target group which would take into account how poor the
people are, their skill levels in the economy and their experience with
entrepreneurship.
The nature of the or sub sector of the economy to which existing enterprises belong
whether in the primary sector, secondary sector or tertiary sector and the extent to
which his sector enjoys technical and policy support from the government/ private
sector
The characteristics of the enterprise such as its scale and ownership individual,
family based, group or cooperative.
For understanding the demand pattern, a survey of the local haat bazaar and village
market is done. The supply possibilities and demand pattern in the area is then
analysed through a systematic micro planning process to arrive at a scientific
selection of activities for the Self Help Groups and for launching and managing the
activity. It is for this purpose of identifying potential activities that there is need for a
systematic survey as already mentioned and analysis of the data collected.
105
Together they give a complete picture of the micro enterprise scenario of the project
area for planning a realistic grassroots intervention.
Market Survey :
Three sets of questionnaires can be used for the haat survey so that haats can be
studied from different angles and perspectives.
The haat profile attempts to capture basic information about the haat such as its
location, day, timing, types of products sold and participants fee.
The seller profile collects useful data on sellers such as places of procurement of raw
material/ products and reasons for participation in haat .
The buyer profile attempts to understand buyers and their buying habits.
The three questionnaires complement each other and taken together , provide a
complete picture of the local market system.
Market Planning :
As already mentioned, market study is a very important preparatory work for selecting
income generating activities for Self Help Groups and their members. A Self Help Group
may be in a position to obtain loan for livelihood activities to be taken by its members. But
without market study it is very difficult on the part of the members to sustain the activity.
Study Markets :
Though an SHG may be at a stage for encouraging its members to start a micro enterprise
for livelihood , an essential need is to study the demand pattern of local markets through the
market approach.
106
Offer scope for products and services to be sold locally, making an economic activity
self reliant and locally sustainable.
Allow scope for groups to directly understand consumer tastes and choices.
Prevent dependence on an external marketing agency for establishing a marketing
network and for tapping far-away markets.
In identifying products that Self Help Groups are guided to keep in mind the following
questions :
Could they make the product themselves? If so, were raw materials and other inputs
for production locally available ?
Would it be possible for them to sell the product themselves or through other family
members at haats?
After noting selling prices, could they sell their product at competitive prices?
Could they match product quality and maintain it?
After the visit , the group could identify over the local market, different products and trading
activities. This market oriented approach to activity identification also lead groups for selling
products collectively.
107
Number
of Basic
entrepreneurs Raw
Material
Available
Essential
support
services
Sales
possibility
Village
In
Out
Skill
Y/N
Activities
suggested
for M.E.
Haat
PRODUCTION
Milk
Production
20
Veterinary
NA
NA
Trading
Grocery
Service
Tailor
108
Sales Possibility:
Three types of markets are available for village produce, inside village itself, in a nearby
village/ town and a Haat. If a market is available mention Y in the relevant cell otherwise fill
N.
Skill:
If an activity is practiced in a village, skill is mentioned Y , otherwise fill N . For example ,
villagers prepare pickles at home for own consumption, so skill is available with them
although they are not doing the activity commercially.
109
The implementing agency should identify different types of buyers listed below and
initiate business negotiations on behalf of the women :
The success and growth of the activity depends on the availability of support services in the
area such as veterinary service, irrigation, technical institutions, insurance etc. For example
the growth of livestock cannot be ensured unless a proper veterinary support system is
available in the area.
Preparation of checklist of promotional and support agencies.
Establish contact with these agencies and apprise them about the project. Find out
that how can they provide support to the women pursuing various activities. For
example livestock inspector can tie up his regular village visit to coinside with the
meeting date of SHG.
Preparation of Micro Credit Plan :
Above exercise will help the Self Help Groups to prepare the Micro Credit Plan for income
generating activities. They will be able to identify the activities as well as the investment
required- individually or as a group.
Need for Micro-credit Plan:
Besides investment for income generating activities, member of Self Help Groups will require
loan for social and other consumption purposes. Accordingly the members will prepare micro
credit plans for economic and consumption purposes.
Need based Credit Plan:
Members will prepare micro credit plan based on their needs and requirements and will
submit it to the respective groups for availing loan from different sources through the group
as well as from the village organization . Community resource persons, coordinators etc. will
help the members in the preparation of the micro credit plans.
The members should also discuss with their family members while preparing their individual
micro credit plan.
110
111
Under NRLM , groups are supposed to prepare a holistic project proposal as to how
a selected key economic activity will be developed in providing sustainable self
employment to the SHGs/ Swarojgaris.
Lack of proper planning for self employment programmes at district and block level is
one of the most important limiting factors.
Under NRLM infrastructure will be created as common facility for filling up the
following critical gaps in the management of the income generating activities from
NRLM infrastructure fund:
Production related.
Processing related.
Marketing related.
Quality up gradation and testing.
Value addition and diversification.
Due to the lack of proper planning there are critical gaps in the availability of required
infrastructure for providing support services to promote the growth of selected
income generating activities.
Creation of infrastructure should be part of the project proposal / perspective plan for
development of income generating activities in the clusters.
Infrastructure should be created only to promote the selected key economic activities
in the clusters.
Capacity Building :
Technical and managerial skill among the rural people is quite inadequate.
Building the technical and managerial capacity of the swarojgaris is the pre-requisite
for providing loan, subsidy and other assistance.
112
Training centres, master craftsmen, master weavers and other experts are quite
inadequate in the districts as well as in the blocks for providing training on skill
upgradation in the selected activities.
Identification, cataloging and establishing linkages with specialized institutes and
organizations are very much essential for organizing training on skill development.
Activity specific modules for skill development and up gradation is required.
Identification of improved technology and their application in the development of the
selected income generating activities are required for adding value to the products.
Marketing:
There is no dearth of agencies for providing guidance and consultancy for marketing
of products produced by organized sectors.
Micro enterprises developed in unorganized sector in the rural areas die out because
of non availability of an organized marketing system and marketing guidance.
Development of marketing infrastructure at block, district and state level should be
accompanied by development of a marketing system for wider marketing linkages.
With the development of income generating activities in the clusters establishment of
horizontal and vertical linkages are required.
Market Mapping
State level marketing centres
The cell should take care of the following aspects.Establishment of wider marketing
linkages inside and outside the state through identification of various channels.
Coordination with different government agencies etc.
Take up market promotion activities like advertising, organizing buyers and sellers
meet, exhibition, exposure visits.
Take up market research.
Provide guidance for standardization and value addition of the products for meeting
changing consumer requirement.
Field level technical and managerial guidance besides training on skill upgradation.
Timely access to required credit for development of the activities on sustainable
basis on simple terms and conditions.
Timely availability of support services like training, raw materials, other inputs,
marketing facilities etc.
Access and exposure to facilities for skill upgradation and transfer of appropriate
activity specific technology for value addition of the products .
high wages are available during sowing or harvesting season , the members of the
group should be allowed to decide on their priorities.
Training and other technical inputs should be easily available for the selected
activities. However if needed, training and skill development for the member should
be designed to facilitate the work already undertaken by them making it more
productive and profitable.
When the activity selected is non- traditional in nature, it may be difficult to find a
local market for the products. In such circumstances it may be necessary to localize
such activities by way of increasing the number of groups carrying out such non
traditional activities in the same area so that the total production in a given area can
be increased. This will help in finding the market for the products.
While planning the activities , care should be taken to meet the infrastructural
requirements such as work common sheds and go down etc. from NRLM funds.
Livelihoods opportunities for Self Help Groups in agriculture and allied sectors of
Assam :
Seed Production :
Seed producer
Agricultural input dealer
Commercial nursery
Vegetable seed dealer
Nurseryman
Fruit grower
Vegetable grower
Seed producer
Vegetable /fruit shopkeeper
Cottage Scale fruit and vegetable grower
Mushroom grower
Planter
Seed producer
Plant Protection :
Dealer in pesticides
Agro-chemicals:
Dealer in fertilizers
Formulator of safe bio pesticides including botanicals
Vermicompost / Bio fertilizers
Farm Mechanics :
Custom hiring of agro-machinery
Sericulture:
Sericulturists/ farmer
Reeler
Silk worm seed producer
Waste cocoon spinner
Plant protection agent
116
Dairy Technology :
Running a small scale unit of milk procurement, transportation, distribution and sales
Production and sale of value added products like-Curd/ yogurt, lassi, cultured butter
milk, ghee, butter, khoa and khoa based products, paneer, chakka/ ahrikhand,
flavoured milk and sterilized drinks, chhana and chhana based products, dry blended
products, kulfi, candy, Ice cream, processed cheese and cheese spread.
Poultry production :
Swine production :
Inland Fisheries:
117
Agriculture
Seed farms.
Custom hiring of agro machineries.
Agro clinic.
Seed and sapling production nurseries.
Tissue culture laboratories.
Seed processing centres.
Mushroom spawn laboratories.
Horticulture
Common Cold storages for vegetable, fruits and flowers.
Transportation and marketing facilities for vegetable, fruits and
flowers.
Common vermiculture centres and production of bio-fertiliser
Common agro processing and packaging centres.
Common Fruit and vegetable processing centres.
Agro processing
Fish processing and packaging centres.
Common Spices processing and packaging centres.
118
Dairy farming
Fodder cultivation.
Feed mixing plants.
Artificial Insemination Centres.
Collective Milk marketing and transportation facilities.
Poultry hatcheries.
Farms for maintaining pure breed / parent stock.
Poultry farming
119
CHAPTER 9
COMMUNITY BOOK KEEPING AND ACCOUNTING
What is financial discipline?
Every member, office bearer or committee member dealing with the funds of the Village
Organization/ Block level Federation has to adhere to three important principles, which are
also the three pillars on which financial discipline is built are:
1. Transparency
2. Accountability
3. Prudence
Transparency:
All financial transactions are made with full knowledge of the Village Organisation /
BLF, leaving no reason for confusion.
Every SHG of the VO/BLF has the right to know the details of all financial transaction
All financial transactions are clearly recorded in detail and any member in the
community or outside the community can verify these records.
All financial transaction updated information must be displayed in the VO office and
will be accessed for all.
Accountability:
The office bearers have to exercise their financial powers with utmost care and
remain answerable to the members, SHG/VO/BLF.
The BLF/VO can fix responsibility on any office bearer for not complying with the
guidance in dealing with CIF and can legally recover all the losses incurred by the
village organization on account of such actions, from the office bearer.
All financial transactions are to be properly reported to the BLF/VO and its sanction
must be obtained.
Prudence:
All financial transactions have to be carried out with utmost care protecting the
interest of the community.
No office bearer or their relatives or allies shall directly or indirectly get undue benefit
from a financial transaction of the Village organization/BLF.
All financial transactions are to be documented carefully with correct documentary
evidence using sound accounting principles.
All members of SHG/VO/BLF including the Office bearers require should be responsible,
cautious and honest in spending the money which they have directly received from the
project. SHG/VO/BLF must also realize that they are accountable for every paise of money
spent. If any one of them violates these principles, the whole SHG/VO/ BLF will be denied
further funding and will result in the cancellation of the agreement. The misdeeds of even
one of the member or community member will deprive the benefits of the project to the whole
village.
120
For this purpose we need to follow the non negotiables and key principles mentioned in
Chapter 2 in each and every transaction throughout the project at all levels.
Community must be careful and do the following:
Maintain a simple and accurate accounting and book keeping system.
Buy things of good quality at the lowest price.
Let the community make their own decisions after weighing all the aspects as they
will do for their own money.
How to open and operate a Bank Account including selecting signatories.
Community Investment Fund at Village Organisation or Block level Federation level is
community money and SHG/VO/BLF should take utmost care to keep it safe and spend it in
a judicious manner.
Open a Saving Bank Account in the name of the Village Organisation or the Block
Level Federation in the nearest Bank.
All the CIF received under the project should be deposited in the Bank account of
SHG, VO or BLF only.
All withdrawals from the bank account should be by cheque issued in the name of the
beneficiary/ supplier etc.
For the purpose of operating the bank account, SHG/VO/BLF has to nominate two
signatories by the SHG/Village organization/ BLF. While opening the bank account
the name and addresses of the authorized signatories and their photographs need to
be provided. These names will be put in the passbooks and attested.
The two signatories nominated as above will jointly sign cheque for operating the
bank account.
The pass book and cheque books will be kept in the safe custody of the Treasurer of
the VO/BLF.
Fund flow:
Initially before formation of VLF the funds will as shown below:
SMMU
DMMU
BMMU
SHG
SHG
121
SHG
After the formation of VLF the funds will flow as shown below:
SMMU
DMMU
BMMU
VO
SHG
SHG
SHG
Financial Management:
The objective of developing the self sustainable Community Institutions can only be
fulfilled when the Institutions will able to efficiently manage their resources for which
efficient Financial Management and bookkeeping system has to be developed in
these Organisations.
Method of accounting:
Accounts shall be maintained on single entry book keeping system and accounting shall be
done on cash basis i.e., all receipts and payments in respect of the Program shall be
accounted on the basis payments made or received.
All payments should be charged to the relevant expenditure head of account at the time of
making payment.
Stocks:Materials and supplies purchased by CBOs during the various phases of the Program
should be charged to relevant Expense/Activity Account to which it pertains on payment and
will be considered as utilized but memorandum records and physical controls will be
maintained.
Interest received from bank and Loan Fund will become the corpus of the community
Organisation and can be used for incremental Office expenses of the organisation.
Fixed Assets and Depreciation
122
2.Savings Ledger
3.Loan Ledger
4.Cash Book
6.Attendance Register
8.Insurance Register
9.General Ledger
SHG Book Keeping:
Book keeping enables the group to monitor its performance and to take always right
decisions. It helps in assessing the financial status of the group like members savings, loans,
members attendance, group fund, recovery percentage etc.
Identification of book keepers:
Following criteria should be followed for identification of book keepers.
The Book keeper should have respect for the women members of the group.
CHAPTER 10
COMMUNITY PROCUREMENT
Under NRLM, federated structures of Self Help Groups (SHGs) will be formed at different
levels (village, block, district) for undertaking value chain linked activities in dairy, agribusiness and similar enterprises for better production, storage, marketing, etc. of the
produce of the members of the SHGs. These groups would undertake procurement of
goods, works and services in line with the selected value added activity.
Under the project, communities are empowered to carry out procurement of goods, works,
materials and services as described below consistent with procedures and rules as given
below:
Goods means construction materials, equipment, machinery, consumables, etc.
required for implementation of any subproject.
Works means construction of buildings, village roads, rehabilitation of minor
irrigation schemes including structures, etc. This may include where required hiring of
skilled and unskilled labour towards implementation of such works.
Materials means cement, sand, steel, electric cabling, wiring, and fittings, etc.
Services means hiring of individuals/ firms who will provide professional services
such as preparation of plans, engineering estimates and drawings, implementation
support for subprojects, training of SHG,VO, BLF members and various committees,
quality monitoring of works, setting up accounting systems, setting up savings and
loan activities etc.
Process:
In general, procurement would follow the proposed and approved micro-credit plan,
arrived at by the following process of:
Need assessment through a participatory process
Preparing procurement plan by: (i) Grouping items or services to be purchased and
(ii) describing the anticipated method for purchasing same.
Establishing purchase committee comprising of community members.
Posting a general advertisement in a public place (i) including shopping areas,
community hall/centre, government office etc.; (ii) community discussion groups; (iii)
local radio stations; (iv) local news papers etc.
Key rules:
Transparency: All procurement procedures must be carried in an open and
transparent manner by informing the respective CBOs and displaying all details of
procurement at prominent places in the village.
Equal Opportunity for all Suppliers: Equal opportunity must be given to all
suppliers interested in supplying items to the CBOs and uniform evaluation
procedures must be adopted.
Accountability: Any office bearer or committee member of the CBOs undertaking
procurement function remains accountable for all decisions and actions taken.
Members found practicing corruption are liable to be expelled from the primary
membership of the CBOs. Losses, if any occurring to the CBOs on account of the
actions of a member will be recovered from such a member.
Ensuring Value for Money: items procured should meet the required technical
specifications and the quality standards, and the best price.
124
Avoid Procurement of items from Friends and Relatives: Procuring items from
close relatives and friends of any of the office bearers of the CBOs must be avoided.
No Undue benefit for anyone: No Members of the CBOs shall accept directly or
indirectly any undue benefit or advantage on account of a procurement action.
Advantages of Community Procurement
Communities are able to get the best price from the suppliers and procure items at
optimum cost which will ensure savings and quality.
Community is accountable and takes responsibility for the decision which makes is
advantageous to the community members.
Communities can use local labour, local materials, and indigenous knowledge.
Communities will improve skills and gain confidence in implementing participatory
development subprojects.
Communities will display information related to procurement actions for the
information of communities thus ensuring transparency of their transactions.
Description of
Procurement
Method
Goods
Works
Petty
Purchase
<
INR NA
10,000
Local
Shopping
<
INR NA
50,000
Limited
Tendering
<
INR <
INR
7,50,000 10,00,00
Post Review of
10% of such sub
projects to be
undertaken
by
State PMU.
Post
125
review
Key
Implementi
ng Units
Description of
Procurement
Organisatio
ns,
established
under
NRLM
< INR
25,00,00
0
Communit NA
y
Force
Account
< INR 1
crore
<
INR
25,00,00
0
Services
Individual Consultants up to a value of
INR 1,00,000 per contract following
competitive procedures.
Institutional Consultants up to a value
of INR 10,00,000 per contract
following competitive methods of
CQS, FBS and LCS
126
instituted
by
NMMU
to
consider
the
state
PMU
reports as part of
secondary
review, following
CDD
procurement
review
procedures. No
field
level
physical review
anticipated but
sample checks
can be done
following
CDD
procurement
review
procedures
128
CHAPTER 11
SOCIAL AUDIT
Household drop-off :
In this approach, the Social Auditor goes to the houses of the members. This method is
expected to increase the percentage of respondents. However, the applicability of this
method is geographically limited, slow and expensive.
Interview with key formats from SHGs, Federations and other stakeholders:
The information collectrion should be at random, covering representatives from
SHGs, Federations etc., who can view point with special knowledge so as to gain
insights into particular subjects.
Group interview with representatives of SHGs and Federations: This method of
information collection allows a focused discussion on particular issues concerning the
community. This method requires less resources compared to personal interviews
Telephonic interview with SHGs, Federation and other stakeholders: Telephone
interviews enables the Social Auditor to gather information rapidly. Like personal
interviews, they help to develop some personal contact between the interviewer and
the respondent and this method offers the possibility of probing into details.
Semi Structured interview : Semi structured interview will also be used for listening
to the perspective of different stakeholders including members of Self Help Groups
and federations.
In deft interview: In deft interview will also be conducted with SHG members,
representatives of federations and other stakeholders. In deft interviewing involves
asking questions, listening to the answers and then posing additional questions to
clarify or expand on a particular issues.
130
Sl.
No.
Stage
Vulnerabilities
Social Inclusion
Landless Labourers.
Other occupational vulnerabilities
131
Homogeneous Groups
Institution
Building
132
Financial
Inclusion
and
loan
are
Formal credit institutions are viewed as inaccessible and
unfriendly by the poor.
133
134
Access
to Accessibility to the project units and other institutions and
institutions/
office may not be adequate or easy due to following
project units
reasons:
135
CHAPTER 12
MONITORING, EVALUATION (M&E) & LEARNING.
Focus
areas of
monitori
ng
Projec
t
Opera
tion
Project
perform
ance
Project
Tools of
participator
y
monitoring
Monitorin
g
Techniqu
es
Document
s Review
Regula
r
Progre
Citizens
Report
Card
Monito
ring
Staff
Perfor
mance
Report
Citizens/
Voice
Card
Surveys
Discussio
n with
Groups /
Federatio
Tour
reports
by field
Staff
Impact
Interview
s
Qualitati
ve as
well as
Quantita
tive
Monitori
ng
Observati
ons
Particip
ant
Observa
tion
Listening
to people
Reports
from
visitors
Brain
storming
Interviews
Conversatio
n
Participatory
Monitoring
Case
studies
Third party
evaluation
Thematic
studies
136
Commu
nity
Monitori
ng
Self
Monitori
ng
system
of SHG
Family
Satisfaction
Survey
Citizens
Monitoring of
Public Service
DeliverySocial
Audit
Impact
studies
Qualit
ative
monit
oring
of
Internal Review Mechanisms for the State and District Level Mission UnitsReports, Meetings, Visits, Workshop etc.
a) Monthly Planning/Progress/Process reporting systems which operated under MIS
137
b) Monthly/Quarterly Internal Review System for the block/district level team facilitated
by the district unit and state unit at the block/districts/state level with district /state
project management staff participating.
c) Field visit by the officials of block, district, state and centered to assess the overall
implementation and monitoring mechanism for proper implementation and for
suggesting corrective measures.
d) Super vision team will be periodically sent by the National and State mission usually
once in six months. Such Super Vision visits would also include the State specific
Independent Resource / Research Institutions (Monitoring Institutions that has under
taken the task of monitoring and super vision in the state. Thematic area super vision
visits besides the overall assessment visits would also be undertaken.
Monitoring and Learning Systems: It is proposed to develop and put in place a web
based comprehensive programme system facilitating real time flow of Information and
programme performance and new initiative effective decision making. ASRLMS will
assisted in developing comprehensive enable IT architecture for hosting data base with
dedicated digital grid and used of various front end devices; institutionalising ICT based
result monitoring system and MIS based decision supporting systems;
monitoring and evaluation activities includes and process monitoring; thematic studies ;
social accountability practices like social audits, public expenditure tracking system,
community score cards etc. to facilitate monitoring and bring in transparency in
programme implementation.
Tools and techniques will be applied for participatory, qualitative monitoring :
Documents review
Surveys
Discuss with groups, federations and their members.
Interviews
Observations
Listening to people
Brain storming
Conversation
Case studies
Monitoring Techniques:
1. Regular Progress Report: Progress reports submitted by Community Service Providers
and records at DMMUS and BMMUS should contain physical and financial progress of Self
Help Groups developed, federations developed, livelihoods collectives formed etc.
From the financial and physical progress report, it will be possible to make a rapid
assessment of whether, and to what extent, the original objectives of the Project have been
fulfilled, and whether it is working successfully within the allocated budget. Disbursement of
funds for the Project can be matched against other data/ schemes.
2. Monitoring Staff Performance: Monitoring staff performance can ensure that individuals
are effectively employed to fulfil given tasks. Ideally, all those employed in a project should
meet regularly, to discuss their progress, and match this against targets and objectives, and
discuss problems and possible changes.
3. Tour reports by field Staff: Often, the most useful information about qualitative aspects
of a programme are obtained from the tour reports to be submitted by staff of DMMUs and
BMMUs.
4. Participant Observation: The spearhead team of BMMU may stay in the villages and
observe the groups closely so as to obtain sensitive, first-hand insights.
138
5. Reports from visitors: The spearhead team of BMMU will ensures that all visitors to the
field officials from SMMU, DMMU provide a short report on their impressions of the
schemes. These can provide insight/ information on new developments, exchange and help
in further developing programme.
6. Interviews: Group members and community leaders should be interviewed on their
attitude towards the Project and resultant changes.
7. Participatory Monitoring: In this technique, the group members themselves will be made
partners in monitoring evaluation. Project staff and group will discuss and assess the
performance together, in order to understand how they have performed, what the problems
are and what the future holds for them.
The project staff mainly plays a guiding role to formulate appropriate questions and eliciting
answers. For example, the groups can be prompted to draw inferences from the bank record
books, savings books etc.
8. Complaints/ grievances Petitions :Complaints and grievances petition from people in
general and target group in particular may throw some light on the actual performance of the
Project. The project will make provisions for such source of information as part of monitoring
mechanism.
9. Process Monitoring : Process monitoring will be undertaken on the following objectives:
To understand how project inputs result in project outputs and identify issues critical
to such conversion.
To provide information necessary to the management to increase the effectiveness of
the project.
To verify the process related assumptions of the project
To assess whether activities are carried out as planned.
To generate a learning and feedback mechanism, which would enhance prospects
for adaptation especially at the early stages of the project.
10. Peer monitoring: Under this monitoring of one block will be done by a team of monitors
from another block on regular intervals. These monitoring will be covered different aspects of
the vision particularly components like social inclusion, institutional building, livelihood
promotion, credit delivery, functioning of livelihood collectives, sustainability etc.This will also
help in cross learning and share experience from neighbouring blocks. Community Service
Providers and other professionals will benefit from this horizontal learning system.
11. Community Monitoring : Community Monitoring will be done in following ways:
a) Citizens Report Card b) Citizens/ Voice Card c) Family Satisfaction Survey
d) Citizens Monitoring of Public Service Delivery. e) Social Audit f) Impact studies
g) Third party evaluation h) thematic studies.
139
Qualitative Indicators :
Short term :
Individual self-assertion
Collective resistance
Collective Action
Greater access to physical resources.
Increase in literacy skills
Increased access to information on health issues and greater awareness to utilize.
Existing health services.
Medium Term :
Long Term :
Quantitative Indicators :
General Indicators :
Activities / events in which a group participates : Eg. Collective economic activities ,
meetings, training sessions.
Action: Specific Action undertaken by the group to tackle a particular problem. Eg.
Action to obtain social welfare, action to defend members interest against exploitation
by a traden, action to persuade some defiant husbands to assist members , active
participation in group activities.
Change in group behaviours : The nature of group meetings , issues discussed ,
decisions taken, degree of participation, use of language.
140
- An Affinity Group
- A Homogeneous Group
- A Democratic Group
All the Group members should possess leadership qualities - A Leadership Group
- A Disciplined Group
- A Transparent Group
- A Progressive Group
Index and indicators will help in grading the SHGs for formation of Village Organization,
Community resource persons will impart training on the index and indicators and monitor the
performance accordingly.
Equity
6. Broad-based understanding of group activities and worldview
7. Group participation in decision making
8. Equity in benefit flows
9. Livelihood impacts and reduction in vulnerabilities.
Sustainability
10.Vision/ ideas for future
11. Group- based natural resources regeneration/conservation
12. Internal norms, mutual trust and role clarity
13. Group attachment/ ownership
14. Ability to raise issues and resolving conflict
15. Maintenance of Assets
16. Social inclusion and emotional well being
17. Freedom to function as a group and power to influence decision- making.
143
Election : Elections for the position of leaders will be held regularly and in a fair
manner and at least 75% of members will participate in it.
Attendance : At all our meetings, we should have 75% attendance of members.
Access to loan : All member SHGs will have access to loans.
Interest : Every year , interest should be added to the savings lying with it. SHGs
should also add interest to the savings of their members.
The rate of interest added to savings should be at least 2% more than what banks
give.
Withdrowal: Regular savings should be withdrawn only when a member withdraws
from membership.
More savings : Each year , the total savings should be higher than the previous
year.
More disbursement: Each year, the loans disbursed should be higher than in the
previous year.
Less idle fund : Idle funds in the Federation should be less than 10% of the funds at
disposal.
Zero defaulter: There should be zero default in thrift remittance by member- SHGs.
On time payment : On- time repayment of principal and interest should be not less
than 97% of the amount due for collection.
Completely filled books : All books of accounts should be completely and correctly
filled up , without overwriting.
Books of Accounts : Members of the Executive Committee and the General Body
should know what books are maintained and understand the need for each.
Financial Statements : Every delegate to the General Body, and every memberSHG should receive a copy of the annual financial statements.
Statements in minutes books :Every month the financial statements Receipts and
payments Statement, Income and Expenditure Statement, Balance Sheet should be
read out in the meeting and the bookkeeper should sign the statements. The signed
statements should be pasted in the minutes book.
144
Book keeper :The book keeper should be a member of an SHG which is part of our
Federation.
Audit report : Quarterly audit reports should be discussed in the monthly and annual
meetings. Annual audit report (by chartered accountants) should be presented in full
to the General Body for its consideration.
External loan: Before accessing any external loan, all related information, all terms
and conditions and all documents should have been placed before members for their
approval.
Audit : Books of accounts should be audited once every 3 months by the internal
auditor, and annually once by a chartered accountant.
Cross checking: Closing cash balance must be cross-checked with the closing cash
balance in the Cash Book each month. The closing bank balance as shown in the
Cash Book must be checked with the bank pass book.
Expenses from interest :Expenses should be made only from interest, service fee
and other income earned.
More fund : The total fund available for business this year, should be more than
what was available last year.
Loan collection : Loans must be collected fully and on time.
Expenditure as per budget: The actual income and expenditure for each month/
year should be compared with the budgeted amount for the same period, for better
control over funds management.
Competent stuff: Federation should have competent staff.
Effective management :The Executive Committee should be competent to manage
affairs effectively.
Own office: Federation should have their own office.
Computers: Within 3 years the organization should have their own computer and
should be working on it.
Reserve fund:The organization should have built some reserve funds.
Insured assets: The movable and immovable assets of the Federation should be
insured.
Statement: The Demand Collection Balance statements for loans, interest,
savings and Loan- Aging statements must be prepared regularly and discussed.
Payment of external loans: All external loans should be repaid on time, in
accordance with the agreement.
Insurance: Where the ultimate borrower has purchased an asset with a loan, the
borrower must be required to insure it.
Reports: If the Federation have any agreement with any external agencies to submit
reports etc, then we should prepare and submit those reports in accordance with the
agreement.
Use of loan as per agreement : If the Federation receive loans, grants, other
assistance, then it should use the loan, grant etc in accordance with the agreement
that they have with the agency providing the assistance.
Profit : The Federation should be in profit. The profit each year should be more than
the previous year.
Distribution of profit: Profit should be distributed among members in a just way.
Any business that the Federation enter into, must bring in profit.
CHAPTER 13
GRIEVANCE REDRESSAL MECHANISM
A Grievance Redress Mechanism will be set up by NRLM Assam to receive record,
investigate, redress, analyse, prevent or take any appropriate action in respect of
Grievances lodged by any stake holder including rural people, members of Self Help
Groups, federations, livelihood collectives etc.
The Grievance Redress Mechanism will cover the three processes of receipt redress and
prevention and will pass through information in the following steps i)
ii)
iii)
iv)
v)
Information on receipt
Communications to complaint
Criteria for classification
Fixing time norms for redress
Level of responsibility for Redress
146
vi)
1 2
Addre
ss
Landline/M
obile/Email
Particulars
of
the
Grievance
Whether
Subject Offi Brief
Acknowledg of the ce
Descripti
ement given grievan
on
at the time ce
of receipt
6 (Yes/No)
7
8
9
Date
of
Acknowledg
ement
Date
of
Redress
10
Criteria
Grievance Category
148
Type of Grievance
Time line
redress
BMMU
for
at
Periodic review:
The SMMU will prepare monthly report on Grievance received from BMMUs and DMMUs.
The report should also contain information regarding the status of undressed/unresolved
grievances. In case of online system monthly report will automatically generated. SMMU will
also consolidate the grievances redressed and pending at its own level on monthly basis.
Grievances can be considered as inputs for the NRLM to understand the expectations of the
stake holders and initiates systematic approach to meet those. DMMUs BMMUs and
SMMUs will analyses as to why they are receiving particular types of grievances more
frequently than others. Such grievances prone areas need to be indentified and analysed for
bringing about necessary reforms
Date
and Grievance
description
prone
of Grievance
areas
identified
improve
system
Authority
date
responsible
for taking
action
It must be ensured that the Grievance Redress Mechanism does not make it cumbersome
for the complaint to lodge a grievance, track it as to why it is pending for redress. It must be
ensured that the process is streamlined to ensure fastest possible redress. Efforts will also
be made for online grievance redress. Report on grievances received and redressed will be
put on the NRLM web site.
150
CHAPTER 14
CITIZENS CHARTER
Units of NRLM will prepare citizen charter highlighting the standard of services to be
delivered. Though not enforceable in a court of law, citizens charter is intended to empower
the stake holders of NRLM so that they can demand committed standard of services and
avail remedies in case of none compliance.
Main services
Standard/Targets
Performance
indicators
monitoring
Services and standard will be included in due course in consultation with the stake holders.
Evaluation of Citizen Charter and implementation of Grievance Redress Mechanism
implementation:
To ensure that Citizens Charter and GRM are implemented effectively the following
procedure will be followed:
1. DMMUs and BMMUs will be asked for the lists of the Stake holders /citizens that
interacted with them
2. Then a few citizens /stake holders will be picked up at random.
151
3. The Citizens/stake holders will be contacted to get their views on the services availed
and also to find out whether the promises made in the charter are delivered.
4. It will also be find out whether the GRM has been working properly.
5. Based on the finding DMMUs and BMMUs will be given score on the following scale.
Excellent
Very Good
Good
Fair
Poor
100%
90%
80%
70%
60%
CHAPTER 15
PERFORMANCE MANAGEMENT SYSTEM
152
Measuring performance
What should be assessed? (Key Result Areas)
The project implementation plan lists three broad objectives for the project. There are a
number of activities which would be performed to achieve these three broad objectives.
These are:
a. Building and strengthening inclusive organizations of the poor.
b. Improving their access to credit & livelihoods opportunities.
c. Supporting capacity enhancement of public, private and non-governmental
service providers for credit & livelihoods support service for poor & their
organization.
The performance management system would focus on monitoring the performance of
the project on these three broad objectives which would be the basis of defining the key
153
result areas for the staff. To deliver these, efficient business processes have to defined
and implemented. The Performance Management System would also monitor how well
the business processes are conducted.
The role of the district and the state teams are more in the realm of building the capacity
of the rest of the staff, ensuring technical resources are available to the block and the
village institutions, while the key role of the block team is action which will be measured
to assess performance.
From these broadly defined objectives, the Mission would prepare Annual Action Plans.
From these plans, indicators on which performance would be measured would be
developed. Thus a new set of KPIs would be developed every year, once the annual action
plan for the project has been finalized. The process for developing the KPIs for year 2 and
every subsequent year has been indicated in the section Actionalizing Performance
Management System. The scheduled assumes a January to December cycle annually, so
that increments could be announced by end of March for the next financial year.
How will Performance be assessed?
Performance assessment would be done mainly through two sources.
By collecting secondary data from the MIS Reports. As far as possible, all quantitative
data related to performance would be collected directly from the Monitoring & Evaluation
System of the project.
Through assessment of the quality by collecting data directly from the field. These would
entail field visits & meetings, getting data from minutes books of peoples institutions
promoted etc.
In case the project envisages incorporating other system like Process Monitoring, community
score cards etc, the quantitative data could be sourced from these reports to obtain
regarding performance.
Who will be assessed?
All staff working in the project including those on deputation would be assessed. Apart from
measuring individuals, team performances too would be assessed.
Defining the Team:
The Block Team would consist of the following:
1. Block Project Manager
2. Block Coordinators
3. Block Accountant
4. Data Entry Operator.
The District Mission Management Unit team would consist of the following
1. District Project Manager
2. District Functional Specialist
3. Accounts Officer
4. Account Assistant
5. MIS Executive
6. Data Entry Operator
The State Mission Management Unit Team would consist of the following:
1. State Mission Director
2. Assistant Mission Director
3. Financial Advisor
4. State Project Managers.
154
Component
Identification
KPIs
(for
Assessment
Period)
Process
Key Responsibility
2.
Performance
Assessment.
3.
Identification
of Step 1: Analysis and consolidation of areas
Capacity Building identified as weak/average. This could be done SPM
Needs
at two levels- i) Team Based (Field Teams,
DMMU, SMMU) or ii) Position based (Team
Leaders, Area Coordinators, etc)
155
4.
Rewarding
SPM
Qualitative assessment
In case where a system is not functional through which data on quality performance
can be assimilated, an alternative design of assessing quality of work done would be
taken into consideration.
The quality of the institutions (SHGs, Federations, Producer Groups/Collectives etc.)
formed along the community and the strength of the livelihoods promoted would be
assessed. At least 5% (or 10, whichever is lower) of the institution promoted should
be visited by the assessment team to look at quality of work done. The design
principles followed include
Prioritizing parameters according to the goals of the project.
Identifying source of data to asses and verify performance
Developing a range of scores to asset quality
156
Performance Score
Those scoring overall
Grade A
Those scoring overall
Grade B
Those scoring overall
Grade C
Those scoring overall
Grade D
Incentive
5% of their total
remuneration
3% of their total
remuneration
2% of their total
remuneration
No
performance
incentive
157
Score
100% or >100%
Grade
A
Score
75%-90%
Grade
C
91%-99%
<75%
158