ASSAM STATE RURAL LIVELIHOOD MISSION SOCIETY

Community Operational
Manual
Community
Operational Manual

ASSAM STATE

RURAL LIVELIHOOD MISSION SOCIETY

KHANAPARA, GUWAHATI, ASSA

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

Community Resource Persons Strategy

Community Investment Support
Micro Credit Plan
Livelihood Intervention
7.1 Livelihood Promotion
7.2 Economic Activity Specific Infrastructure/Common
Facilities/Support Services to be created & run by
Livelihood Collectives
Community Bookkeeping and Accounting
Community Procurement
Social Audit
Monitoring and Evaluation( M & E) & Learning Framework
11.1 Need for a Comprehensive Monitoring ,Evaluation
( M & E) & Learning Framework
11.2 Monitoring Plan for Self Help Group & Village
Organisation

73-80
81-89
90-103
104-119

Grievance Redressal Mechanism

Citizens Charter
Performance Management System

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

Assam State Rural Livelihoods Mission Society

Community Operational Manual
Community Based Organisation
Self Help Groups
Village Organization
Block Level Federation
Community Resource Person

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

Poorest of the Poor

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.

Interaction with the local panchayats, field level officials

The CRP, social mobilisers will interact with the local panchayats, field level officials to
start the social mobilisation process.

2.
3

Establishing rapport with the community

It is very much essential to establish and effective communication with local

communities. A menu of participatory methods will be used to establish communication
with the local communities. Various methods can be used for establishing rapport with
different communities at the initial stage. Sensitisation programmes will also be
organised to establish communication with the villagers.

3.

Identification of key informants.

Not all community members are equally knowledgeable in all areas. Some have more
knowledge than others. For identification of such informants it is important to meet
different people and look for knowledgeable both men and women living in the local
communities for long years, matured and experience. Community Resource Persons
and social mobilizers will identify such informants in the social mobilisation process. Key
informants will clarify issues and help in cross checking information already collected to
avoid errors and omission.

4.

Identification of socially excluded communities, areas etc. on the following

criteria:
Analysis of primary and secondary data collected from the field for situation analysis
reveal, exclusion for various reasons/ factors. Social inclusion approach / strategy will
take into consideration those reasons and factors in identification of poorest of the poor
families in the villages.
Analysis of data from different districts shows that following factors will have to be taken
into consideration in social inclusion process.
i)Geographical Exclusion :
Remote pockets with poor connectivity, difficult terrain, flood prone remote areas will
have to be covered on priority basis in the inclusion process. Remote Hilly villages of
Karbi-Anglong, NC Hills, flood prone areas of Dhemaji, Majuli having poor connectivity
with main land are examples that can be cited where in social inclusion process will
have to be initiated in priority basis.
ii)Social Exclusion :
There are remote villages inhabited by tribal groups in different plain districts of Assam.
Districts of Kokrajhar, Chirrang, Bongaigaon have large number of such villages
inhabited by tribal groups. They suffer from physical segregation; do not have access to
socio- economic services. Access to bank services is also very poor in these districts.
Field professionals, Community Resource Persons will evolve participatory strategies to
include those marginalized sections of the society.
iii)Economic and Financial Exclusion :
Effort for social inclusion will be made on campaign mode to include atleast one women
member from poorest of the poor families into Self Help Groups. Households belonging
to poorest and vulnerable sections, which are not yet covered under Self Help Group
fold will be covered. Households which do not have access to labour market, credit and
other capital assets will be given priority.Poor families which are still outside the network

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.

Strategy for Social Inclusion :

Effective targeting is a key way to ensure social exclusion of marginalized sections.
Following approaches will be adopted during social mobilization to ensure inclusion of
socially excluded sections :a)
b)
c)
d)
e)
f)
g)
h)
i)

6.

Spatial and Geographical targeting

Social group targeting
Economic or occupation targeting
Focus on marginalized women
Targeting areas using human development indicators.
Covering areas with poor infrastructure and poor connectivity.
Covering disaster prone remote areas.
Special initiatives in conflict prone interior pockets.
Special thrust on socially invisible groups.

Participatory poverty assessment for social inclusion covering following aspects:

The field level professionals and community service providers particularly community
resource persons will take into consideration following aspects in identification of poorest
of the poor families in the villages.
o

Social group / well being assessment.

Marginalised, disadvantaged and women headed households will be identified as
separate groups for social inclusion. This will help to indicate human poverty
dimension of different social groups. This will also help in finding out shift of
households within social groups meaning, thereby, changes in proportion of poor and
non poor households over time.

Asset / resource assessment.

This assessment to be undertaken by the CRPs and social mobilisers will help to
indicate the status of local resources and status of access of poor to assets /
resources natural, physical, human, financial, socio cultural etc.

Vulnerability and risk assessment.

This will help to provide the status of vulnerability of the poor groups both overtime
and on seasonal basis. There is a need to understand the vulnerability context in
which assets related to the poor groups exist. These are the trends, shocks,
seasonality, disaster, cultural practices, custom, which affect poverty status in the
villages. In Assam, such vulnerabilities are very much visible because of floods,
erosion, landslide, and other such disaster.

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.

Problem opportunity assessment.

It will help bring out peoples problems and opportunities as perceived by them.
Problems and opportunities revealed by the poor could be analysed under different
sectors for upscaling to micro level, meso level, regional level, and macro level for
future appropriate action.

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.

Social group assessment.

This will help us to learn about social group related human poverty dimension, well
being / ill being, excess related issues, status of social capital etc. Both qualitative
and numerical poverty status would emerge through social group assessment.

7. Application of Participatory tools and techniques for identification of excluded

families belonging to poorest of the poor category.
Following participatory rural appraisal techniques will be applied in the villages to assess
the already mentioned aspects of exclusion, poverty, etc. among different social groups.
a.
b.
c.
d.
e.
f.
g.
h.
i.

Resource mapping.
Social mapping.
Livelihood mapping.
Well being / poverty / wealth mapping.
Seasonal food calendar.
Chapatti diagram.
Geographical transact.
Wealth grouping.
Social grouping.

Situation Analysis for Institution Building by poor:

National Rural Livelihood Mission (NRLM) has given special emphasis on building institutions
of poor for their own development. Strong institutional platform of the poor enable them to
build up their own human, social, financial and other resources. These capabilities enable
them to access their rights, entitlements and livelihood opportunities. A participatory
approach is very important in the entire process of institutional building by the poor.
Participatory analysis of their own situation helps poor to orient themselves for their own
development. Poor people in the villages will have to be involved in participatory exercises
for assessing and analyzing various factors of poverty, so that they can take action for their
eradication. Different Participatory Rural Appraisal techniques can be applied for analyzing
the situation of the rural area and the poor families.
These participatory exercises to be done by the poor is also an empowering process through
which rural people, particularly the poor families can be made aware about their own
situation, factors responsible for their condition and interventions required for their
development.
Participatory exercises highlighted in this chapter will help the poor to build their institutions
through social mobilization process. This process will also help in social inclusion of the
poorest of the poor families still not included in the Self Help Groups.
The exercises to be undertaken in the villages , will also help the professionals, community
resource persons, coordinators etc. to identify the critical gaps and interventions required for
institutional building , social inclusion, strategy for livelihood activities etc.
The following exercises to be done in participatory manner will facilitate the rural people to
fully participate in the process.

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:

House with mud/ concrete walls and tin roofs;

Houses with mud walls and thatched roofs;
Houses made of bricks and concrete;
Canal;
Pond
Disadvantaged households
Those who have constructed huts under the Indira Awas Yojna
Those households undergone family planning measures
Those households having leprosy patients ;
Those households having tuberculosis patients
Those households which are literate
Those households which are semi-literateThose households which are illiterateThose households which are women-headed-

Thematic Social Mapping

Social Mapping can also be thematic and can focus on different themes such as
infrastructure facility, sanitation, drinking water sources, health facility, etc. for example, the
status of infrastructure is an important part of the social profile of any facility.

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.

SHG Household Mapping

In villages where self-help groups (SHG) exist a social map can indicate members of SHG
amongst other households and also map their status at different points of time. Such a map
can help in assessing the impacts of self-help group activities on the households, which are
members as compared to others which are not members of SHG. Again, mapping of
different social variables for different households will help in analysis of difference between
SHG member households and other households. This helps in including poor households
not yet included in the Self Help Groups.
Well-being/ Poverty/ Wealth Mapping
Well-being/ Poverty/ Wealth Mapping involves mapping of all households in a locality by the
local people and identifying the different categories of households rich, poor, poorest, etc.
on the basis of locally generated criteria. The method of Well-being/ Poverty/ Wealth
mapping of village households and their ranking help in facilitating local communities to
identify different socio-economic strata of households, rank them from the top to bottom
for identifying different categories/ groups of households. In this process the local
communities also explain the criteria of such ranking of different households.
The normal process is to sit with village groups and enable the village groups to apply the
mapping methods for identifying the different socio-economic groups and rank them
accordingly. To start with, the villagers map the entire village. They plot the houses, then
they identify the bottommost poverty groups, the poorest of the poor households, in the
village by marking the households with different colours. They also describe the
characteristics and the factors influencing the poorest of the poor households. After
identifying the poorest of the poor group the villagers identify the next group of poor
households, which has a higher rank than that of the former. They distinguish between
different groups of households ranking them from the bottom and also explain their
characteristics until all households in the village are identified.

Wealth Map of a Village :

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.

Seasonal Health Calendar:

These type of Seasonal diagrams are used to reflect different aspects of rural life. Seasonal
Health Calendars represent all the major changes in the diseases that occur within the a
year. It includes types of sickness in different seasons of the year.
M o n th s
D IS E A S E

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

Chappati Diagram for identification of the problems:

Chappati Diagrams are used to analyze the importance of one aspect of life over others. For
example importance of health over sports and culture etc. It also shows the relationship
between different institutions and the areas for their improvement.
Chappati Diagrams can also be used to study the problems of different groups of people
living in the society i.e. the women, men , olds aged people, children, youths etc. For
example, women can depict their different problems through this method and can assign
different values to different problems by using different size of circles cutted out from paper.
Bigger the size of the circle, the bigger the problem for them and smaller the size of the circle
, the smaller problem for them One of the Chappati Diagram is shown on the following chart
below.

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


Integrated Child Development Services (ICDS)

Reproductive and Child Health Care Programme.
 Wife Beating
 Economic Empowerment :

Female Participation in workforce

Nature of Occupation in which women are engaged
Income level
Use of income
Discrimination in wage rate
Decision making in spending of income

 Gender discrimination in access and ownership of productive and non productive

resources
 Poverty alleviation programmes and access to women
 Impact of poverty alleviation programmes on women
 Number of women beneficiaries by poverty alleviation programmes
 Participation in Self Help Groups
 Status of women headed households, widows etc.
 Her role in decision making
Key persons for the exercise:
Above mentioned exercises will be done in the field by coordinators, facilitators and
community resource persons in participatory manner.
The output of the Exercise:
The participatory exercise with the application of Participatory Rural Appraisal (PRA) will help
in preparation of village/ block profile, profile of the households, identification of resources,
other facilities, critical gaps, existing livelihood activities , critical gaps in the management of
livelihood activities, scope for development of livelihood activities etc.
Besides the above information the exercise will help in gathering the following
information in the field:
 Total number of SHGs developed
 Present status of the SHGs- very good, good, bad, defunct (with numbers)
 BPL families already covered by the SHGs in the block.
 BPL families yet to be covered by the SHGs in the block.
 Number of SHGs received revolving fund and their activities.
 Number of SHGs received bank loan and subsidy present activities.
 Activities of SHGs that have not yet received any assistance / support
 Livelihoods activities of SHGs in the block

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

4.1 Institution Building Plan:

Formation of the SHGs is the first step in long term institutional building process. Following
steps and sequence will be followed in the institutional building process:
1.
2.
3.
4.
5.

Formation of new groups for social inclusion.

Capacity building of new groups including handholding training.
Grading of existing SHGs.
Selection of good SHGs for formation of federations (village organisations).
Capacity building of weak SHGs for formation of federations (village
organisations).
6. Formation and development of federations (village organisations and their
capacity building).
7. Formation of livelihood collectives.
8. Formation of cluster/ Gaon Panchayat, block and district federations
subsequently.
1. Formation of new groups for social inclusion:
Mobilisation process for social inclusion as already mentioned under the chapter social
inclusion will lead to formation of new SHGs. The groups to be developed should have the
following basic qualities.
The Group members should have a feeling of self reliance - A Self Help Group
The Group should have clearly defined goals
The members should have relations of Trust,
16

- A Group with goals

Co-operation & love among themselves

- An Affinity Group

All members of the Group should be poor having

similar& social & economic problems/ background

-A Homogeneous Group

All members of the Group should run it unitedly

- A Democratic Group

All the Group members should possess leadership

qualities

- A Leadership Group

The Group should follow good rules and regulations

- A Disciplined Group

The transactions of the Group should be transparent

- A Transparent Group

The living standards of Group members should

Gradually Improve

- A Progressive Group

The Group members should acquire social

consciousness

- 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.

Groups are starting bases for development activities.

Groups are efficient receiving mechanism.
Groups are learning laboratory.
Groups help empower the rural poor.

Flexible norms to avoid self exclusion:

The groups will evolve norms to accommodate the socially excluded members. The norms
should be flexible enough to avoid self exclusion.
Stages in development of groups:
Following stages in development of groups will be followed.
Stage 1 Forming:

Habits of coming together.

Suspicious fear and anxiety of members discussed.
Stage 2 Storming: Individual interest and group interest surface.
Procedure and rules established.
Leadership will emerge.
Stage 3 Norming:
Trust among group members will develop.
Stage 4 Performing: Group becomes operational.
2. Capacity building of new groups:
Detail under Training of SHGs and Federations.
17

3. Grading of existing SHGs

Existing SHGs whose membership is 70% and above from BPL households will be
supported. Grading of existing SHGs will be undertaken in a very systematic manner so that
only good groups can be included in the federations (village organisations). Uniform norms
will be evolved in partnership with the banks for the grading / rating.
Panchasutra model will be followed in grading of the groups at the initial stage. However,
more indicators and variables will be added for grading groups and federations in due course
of time.
Panchasutra model:
The Pancha Sutra or the 5 Cardinal Principles of an Self Help Group are as follows :
I.

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.

The selection procedure of the Group .

The periodical rotation of leadership in the group.
Identifying the group management capabilities of the leaders in the group.

Index of Meetings & Participation in Decision making :

This Index is constructed through Six variables:







c.

Frequency of Group Meetings.

Regularity of the meetings.
Average attendance at the meetings.
Decision making process in the meeting.
Participation of the members in the decision making process.
Penalty imposed for irregularity attendance.

Index of group Record Maintenance :

This Index is constructed through Five variables:






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.

Index of Capacity to Resolve conflicts :

This Index is constructed through Three variables:




The conflicts faced by the members/groups.

With project staff.
The level of capacity of the group in solving the conflicts

e. Networks and membership Index :

This Index is constructed through Three variables:
 Groups having membership in federation /cluster of groups.
 Membership in formal financial institutions .
 Membership in local organizations, like- schools, political and religious institutions.
f.

Member Dropout Index : This Index is constructed through Three variables:





19

Number of members that left the group after formation.

The cause for the droupout.
Default by the dropout member.

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.

Thrift and Savings Index:

The thrift or saving index measures the saving potential and utilization in the group
The Index has been constructed by using five variables:






b.

The frequency of savings per month

Average savings for the group per month
Total common fund created by the group
Utilization of group savings
Mode of savings collected from the members

Credit Accessibility Index:

Maintaining equity and punctuality in delivering adequate credit has more impact on
the sustainability of the groups
The Index has been constructed by using four variables
 The average loan amount accessed by the group .
 The average number of members who accessed the credit
 The process / procedure of credit disbursement.

c.

Process of Credit Rotation Index:

Credit rotation is one of the decisive indicators of financial sustainability of the group.
The Index has been constructed by using three variables:




d.

The frequency of loans taken by members.

The criteria followed in credit rotation
Credit rotation in the group

Credit Repayment Index:

Repayment of loan to Financial Institution or to the group is equally important for its
sustainability
The Index has been constructed by using three variables
 Repayment according to scheduled by members to the group.
 Repayment according to schedule by group to the Micro Finance Institution.
 The number of defaulters in the group and amount in default.

e.

20

Index of Resource Mobilizations and Utilization :

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.

Index of Independence from Social Parasites:

This index will explain the efficiency of group lending in rural areas to meet the credit
requirements of the poor.
The Index has been constructed by using three variables

The potential of the group in fulfilling the credit requirements of the members.

Number of group members still depending on informal lenders.

Proportion of informal credit in total credit accessed.

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).

4.2. Structure of peoples institution to be built in Assam :

At the initial stage, the NRLM , Assam will go for only village level federations. Subsequently,
the institution building process will evolve to panchayat level federations, block level
federations and District level federations as shown below:-

Zilla Parishad level

Federation
Block level
Federation

GP/ Cluster
Level Federation

Block level
Federation
GP/ Cluster 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

Village Level Federations :

Village Level Federations will be developed by 10 good Self Help Groups who have passed
through the grading process of Panchasutra. Additional indicators and variables may also
be added in due course of time in consultation with banks and other stakeholders for grading.
Participatory mechanism will be evolved for grading new and existing Self Help Groups, for
the formation of Village Organizations.

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.

Cluster level federation / Gram Panchayat level federation :

In Assam, population in a Gram Panchayat is around ten thousand. There will be good
number of Self Help Groups both new and old in each gram panchayat. So,it is proposed to
have a gram-panchayat level/ cluster level federation above Village Organization.Numbers of
village organizations will come together to form gram panchayat level/ cluster level
federation.

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.

Block level Federations:

Next tier will be block level federation. Being a evolution process, block level federation will
emerge when the lower tiers attain strength in terms of numbers, capacities, sound financial
position, good governance and managerial capacity. This tier will be required to establish
linkages with Government., banks , partnership organizations, business houses, marketing
organizations etc.

Functions of Block level Federations:

Formation of Village Federation/ Goan Panchayat level federation.

Developing quality parameters and quality control of village federations.

Capacity building of SHGs through through Community Resource Persons.

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




Arranging for writing of books of accounts and audit of groups.

Solving of inter-group disputes.

Formation of a Village Organization :

A Village Organization will be formed when 10 groups in a village come together.10 nos of
SHGs who have passed through the grading process (panchasutra model) and have
developed the standards according to the indicators of sustainability index (already
discussed) will form village organizations. In difficult areas of Karbi Anglong, Dima Hasao
less number of such SHGs will form village organizations.
Let us assume there are fifteen Self help groups in a village. The Village organization
therefore would be a combination of these ten Self Help Groups.
Needs of a Village Organization:
A Village Organization may emerge for several reasons. A few of them are :

To strengthen individual SHGs by providing a forum for regular interaction and
networking.

To resolve any conflicts that may arise within members SHGs.

For information dissemination to SHGs.

To take up community action programmes which are beneficial to SHG members and
the community, which cannot be accomplished by the individual SHGs.

To lobby with the government and other institutions in support of the poor.

To strengthen existing SHGs.

To promote new SHGs of poor.

To access various services to the member SHGs.

To provide a sense of solidarity among the members.

To facilitate linkages.

To empower women

Village Organizations help SHGs become institutionally and financially sustainable
because they provide the economies of scale that reduce transaction costs and make
the provision of these services viable.

Village Organizations can also can also contribute to the potential of micro finance as
a poverty reduction tool by addressing multiple facets of the vulnerability of poor
communities, and empowering them.
Steps in the formation of the Village Organizations:
The following are the steps involved in the formation of a Village Organization.

Discussions in the SHG and a training programme on Village Organization.

Collective discussions to establish basic structure,functions and norms of the
proposed Village Organization.

Selection of representatives.

Exposure to other Village Organizations

Capacity building of other representatives.
Structure of the Village Organization:
There are three wings of a Village Organization :
 General Body
 Executive Committee including Office Bearer Committee
 Functional Committees

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

Take corrective or transitory measures when any constitutional or management crises

arises and particularly when the Executive Committee is unable to discharge its
functions.

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

Function of these committees are:

a. Social Audit Committee:
The Social Audit Committee will have the following functions:

SAC will monitor the loan utilization by participating in the SHG weekly meeting and
holding discussion with the SHG members.

If loan has been taken by some members to purchase assets and if that assets is not
purchase within a fortnight then SAG will raise the issue in the SHG weekly meeting
and discuss on the reason of delay.

SAC will counsel the SHG members to utilize the loan as per the approval of VO.

If assets are not procured within 30 days the SHG and the member will have to give
sufficient reason for not utilizing the loan and the matter will be taken up to the VO.

If reason cited is not sufficient the VO may take up harsh decision by announcing the
concern SHG as defaulter and next time all members of that SHG will be debarred
from getting loan.
a. Repayment Committee
The Repayment Committee will have the following functions :

Monitoring the repayment schedule SHG wise.

Consulting the concern SHG not able to repay timely and counseling the individual
member.
b. Procurement Committee
The Procurement Committee will have the following functions :

The Procurement Committee will ensure that all community procurement rules are
followed in procuring goods or services.

The Procurement Committee will scrutinize all the payment and recommend it for the
disbursement.
26


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.

Livelihood Promotion Services:







Collective procurement of family requirements- rice, pulses, oils, seeds etc.

Collective marketing of the produce of the members
Processing the agricultural produce of the members.
Linkages for skill up-gradation and training on micro-enterprises.
Inputs for development of assets and increasing the incomes from the existing
livelihoods.

Social Services:








Capacity building and formation of SHGs.

Support in the areas of book keeping, self grading, auditing etc.
Facilitate linkage with quality health care and education services.
Provide information to members on various government schemes and programmes.
Participate in the affairs of the Gram Panchayat.
Address womens issues like rights and entitlements.
Village Organizations are disseminating information on a variety of themes such as
Gram Sabha, health, nutrition, sanitation, education and various schemes of
governmental departments such as the installation of hand pumps, and mid-day meal
programme to secure benefits for themselves and the community.
For example, under delivery channel , the SERP federations in Andhra Pradesh are
implementing watershed programme and mid-day meals for school children. They are
also managing public distribution systems in many

General Development Services:






28

Awareness generation(eg. Awareness among poor women in rural areas)

Delivery of Services (eg. Implementation of rural development and poverty
eradication programmes)
Emergency relief (eg. Services during natural calamities)
Right based approach (eg. Providing food security during lean seasons)

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.

Functions of a Village Organization :

Most Village Organizations which have emerged and survive have the following functions :

Regular review of the functioning of member SHGs.

Conflict resolution within member SHGs.

Lobbying with the Government and other institutions.

Information collection and dissemination of SHGs.

Strengthening SHGs through training and exposure, audits, interaction with other
SHGs.

Taking up activities for the benefit of member SHGs and communities etc.
Criteria for enrolment of an Self help Group in a Village Organization:
The following are the major criteria that condition or guide SHG enrolment in a Village
Organization (Panchasutra and other indicators already discussed) :

Stable and voluntary membership of members .

Regular meetings attended by a majority of the members.

Regular savings by all members.

Building up and proper management of the common fund.

Bank account in the name of the group.

Regular credit transactions from the common fund.

Maintenance of books and documents.

Rules and regulation for proper governance

Rotation of leadership roles

Should have functioned as an SHG for at least six months prior to joining the Village
Organizations.
Roles and Responsibilities of Village Organization members :
The following are the roles and responsibilities of Village Organization members :

Two representatives from each SHG should represent the SHG in every monthly
meeting. At least one of the representatives should attend the meeting regularly to
ensure continuity.

Representatives present a monthly report of the SHG and an action plan for the
coming month, in the Village Organization meeting.

Representatives share problems and issues facing individual SHGs in the Village
Organization meeting.

Representatives report back to the SHGs on the proceedings of the Village
Organization.

Member SHGs co-ordinate credit- plus activities and programmes.

29

4.3.PLANNING FOR PROPER GOVERNANCE AND CHECK AND BALANCES IN

FEDERATIONS IN ASSAM.
Maintaining minimum performance standard.
The federations will set norms, rules and regulations for maintaining minimum standard in
their governance for ultimate sustainability and evolve self monitoring mechanism to check
the standards frequently.
Participatory monitoring mechanism / self assessment tool.
All the federations including VOs in Assam will evolve a participatory monitoring mechanism
under the guidance of SMMU, DMMU & BMMU. Each federation will develop self
assessment mechanism to monitor their performance, progress and sustainability (Self
monitoring in detail has been included in the monitoring and evaluation chapter).
Internal control.
General body, executive committee and other sub committees of the federations will evolve
internal controlling mechanism to run the federations efficiently and effectively. They will
keep track of loaning, accounting, reporting, auditing system and frequently check financial
statements such as balance sheet, receipts and payments, income and expenditure
statement etc. These mechanisms will be captured in software to meet MIS requirement.
On the job support.
On the job training, exposure visits will be provided to the members and office bearers of
federations to enhance the functional capacity and competency of the federations.
Rules and byelaws for self regulations.
Each federation will evolve byelaws for self regulations. Model byelaws will be developed by
the State Mission Office.
Monitoring for regular recovery.
Each federation will develop a tracking system to monitor the payment of loans given to the
SHGs and their members so that follow up action can be taken.
MoU / Agreement:
MoU / Agreement will be signed between federations and SHGs and also between
federations and BMMU covering all the terms and conditions relating to loan and other
matters relating to financial transaction.
Continuous grading to pull up SHGs deviating from the track.
Each federation will evolve grading and monitoring system of the performance of SHGs so
that quality of the SHGs is maintained. Corrective measures will be taken immediately at
SHG level also so that foundation of the federations does not become weak.
Rating of federations.
A system will be evolved in a participatory manner for rating the performance of the
federations and to identify their strength and weaknesses.
30

Third party evaluation.

Third party evaluation will be undertaken to have an unbiased study of the institutional
capacity, strength, weakness etc. of the federations so that corrective measures can be
taken by the mission to maintain the credibility of the federations before the financial
institutions. Federations will have to demonstrate good governance system and sustainability
to attract bankers for credit linkages and others for grants.
Development of product for sustainability.
The village organisations / federations will provide various services besides credit for the
SHGs and its members. The federations will offer support services to the SHGs on a fee-forservice basis to sustain the federations.
Registration of federations and compliance of legal formalities.
The federations in Assam will be registered under Cooperative Societies Act to give a legal
entity. Each federation so registered will comply with all the legal obligations and
requirements in time. They must ensure annual audit of their accounts by qualified auditors
prepare their annual report and conduct annual general meeting without fail.
Provisions of Cooperative Societies Act should be friendly enough to sustain the democratic
and participatory qualities of the federations.
Evolving mechanism to keep away vested interest.
All the activities of the federations should be participatory and it should be an organisation
owned, managed and controlled by the members. Decisions by minority, elite capture should
be avoided at any cost. Capacity of the Federations will be developed to face such issues
and fend for themselves.
Equal participation of all the members.
Provisions in the byelaws will ensure equal participation of all the primary members of the
federations. It will be ensured that voices of the primary members do not become weak as
the federations evolve.
Institutional and financial sustainability.
Each federation will develop system for institutional and financial sustainability. Indices and
monitoring points for institutional and financial sustainability have already been discussed in
the chapter.
Monitoring.
Both internal and external monitoring system will be evolved and it is being discussed in
detail in the chapters for monitoring and evaluation, grievance redressal, social audit etc.
Continuous vigilance over SHGs.
SHGs being the building blocks of federations, federations will keep strict vigil on the
performance of the SHGs to understand their status better and also to develop strategies for
strengthening SHGs by providing appropriate capacity building inputs. A user friendly MIS
system will also be evolved. Quality and regularity of the book keeping will also be monitored
31

by federations for corrective measures to maintain accuracy and timeliness in record

keeping.
Two way communication system.
SHGs will keep on informing about their progress and performance to the federations and
federations will also communicate all the information, reports to the SHGs regularly to
maintain a two way communication.
Reaching the poorest of the poor members.
Main objectives of institutional building by the poor is to help out the poorest of the poor.
Reaching the poorest of the poor members for providing different support and prioritising
their loan requirements will be the primary responsibility of the federations.
Accountability of the office bearers.
The office bearers of the federations should be accountable to the general body and
executive committee. They should not remain accountable to only to the mission officials,
community service providers and other promoters.
Transparency, accountability and common vision.
The federations will evolve norms for maintaining transparency, accountability in its
governance. All the members will sit together to prepare a vision document for sustainability
of the federations. Each and every member should own the vision so that feeling of
ownership is developed.
Self introspection.
Each federation will do self introspection time to time and ask themselves the following
questions:
a. Do they have a meaningful agenda for helping the poor?
b. Are the poor benefiting?
c. Has the federations been able to arrest marginalisation of poor?
d. Has the federations strengthened the SHGs?
Plurality in leadership.
All the members in the federations should have leadership quality. Capacity of the second
line leaders will also be developed through regular capacity building.
Regular social audit.
The social audit committees of the federations along with executive committees and other
members will do the social audit on various activities of the federations.
Member owned and member driven institution.
The federations need to be evolved as member owned and member driven institutions so
that they can function in a democratic manner keeping in view the aspirations of the SHGs
with minimum interference from the authority, promoters etc. Provisions of the Cooperative
Societies Act under which the federations will be registered should be friendly to this
democratic spirit of the federations.
32

Self managed institutions.

The functioning of the federations, internal control and other components of governance will
be managed in such a way that federations become self managed over a period of time.
Public private partnership.
Federations / village organisations will establish linkages with different stakeholders to further
their objectives. The federations alone cannot survive without support from different
stakeholders. The federations will evolve mechanism for such partnership.
4.4. TRAINING FOR SHGS AND FEDERATIONS
Intensive training programmes will have to be organized in decentralized manner covering all
the aspects given below in the module. The module will also help in the capacity building of
the office bearers and members of new village organizations to be developed.
The capacity building covering the following aspects will strengthen both old and new groups.
This will facilitate the formation of village organizations in subsequent stages, Training will be
imparted in a participatory manner through interactive process with involvement of external
and internal community service providers. That is why some key questions have been
prepared to facilitate the discussion during the training process.

Topic
FACTORS
INFLUENCING
GROUP
FORMATION
AND
SUSTAINABIL
ITY

Key Questions


AIMS
AND
OBJECTIVES
OF AN SELF
HELP GROUP






33

What has been the

benefit
to
each
member of the Self
Help Group?
What
is
the
contribution of each
member to the Group
?
What
happened
when people came
together with similar
problems?
What
is
your
objective in life ?
Why have you joined
this SHG ?
What do you wish to
achieve through this
Self Help Group?
Wow will your SHG
help
in
the
development of the
village ?

Content/ Points for discussion

The basic idea behind forming a voluntary
and homogeneous group, which is bound
by affinity, is to share responsibility and
authority between members so as to
achieve their objectives and remove
obstacles to progress that would be difficult
to achieve individually.

Developing the Aims and objectives of the

Self Help Group.

STRUCTURE
OF A SELF
HELP GROUP

THE
IMPORTANCE
OF REGULAR
/WEEKLY
MEETINGS:

Most SHGs which are functioning well

have the following structural features:





NECESSARY
CONDITIONS
FOR
CONDUCTING
A MEETING

Why are regular /

weekly
meetings
important ?
What might happen if
meetings are held
less frequently ?
What happens if
meetings
are
irregular?

What are the necessary

conditions for a meeting to
be successful?

CONDUCT OF How to conduct an SHG

AN
S.H.G. meeting?
MEETING
34

 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

Tell the story of a

time when you faced
a
challenge
and
achieved something
you still feel proud of
What strength did the
narrator display in
this story? What are
the reasons for her
success?

Every human being has strengths.

Therefore, every SHG will have
strengths because an SHG consist
of strong human beings working
together as a collective . These
strengths are inherent and are not
entirely dependent on the support
of the SHG promoting institution.

GOAL OF THE
GROUP

What is a goal?

GOALS
SETTING AND
ACTION
PLANNING
FOR THE SHG

Keeping in mind the

vision of your SHG
what does are the
goals of your group?

A Goal is what we want to achieve,

a destination that we want to reach,
something we would like to have or
be.
Goal setting for the SHG based on
the SHGs vision.

THE NEED OF
BOOK
KEEPING

Why does one need

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

Book keeping is needed in order to

keep an accurate record of all
transactions and decisions taken in
the group

provides information of funds

mobilized at local level either in
cash
or
kind
for
various
programmes.
Stock
Book:
It
contains
information of materials received or
issued and balances, along with
their material value.


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

Whoever is writing accounts never

handles the money.
Members keep track , mentally of
the total amount and composition of
the Group fund at any point of time.
The total amount is usually
announced at the meeting or
written on the board.
Members keep track of their own
individual savings and credit status
in the group.
Members ask the book writer to
read out the days minute before
they sign.
SHG members ensure that the
books are always kept up to date.
SHG members ensure that the
book writer has all the necessary
equipment for writing books such
as a pen, pencil, eraser, white
paper, carbon sheets, pins, glue,
rubber stamp and stamp and stamp
ink-pad.
SHG members ensure that the
custody of their books and records
in not with the book writer if he is
the member of the group.


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.






To provide strategic direction to the

group.
To represent the SHG in various
bodies like federations etc
To express and interpret the
groups vision
Good Leadership helps to bring out
the best in everybody.

LEADERSHIP
STYLES

There are several leadership styles, which

a leader may exhibit:
 An Autocratic leader
 A Neutral or Dummy Leader
 An Anarchic Leader
 A Democratic or Participatory
Leader

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.




4.4.1. TRAINING MODULE FOR SHGS

Topic :1 Social Analysis
Objective : To make the participants aware of the realities of the present society.

38

Pre- session preparation : None

Contents :
1. The lack of awareness among the poor about the exploitative nature of their Society.
2. The helplessness of the poor as individuals.
3. The need for the poor to organize themselves.
How to conduct
1. Ask the participants to sit in a circle.
2. Make the participants to list the problems in the society.
For eg. Illiteracy
Corruption
Poverty

Female infanticide

Dowry

Alcoholism

Casteism

Bureaucracy

Child Labour Lack of infrastructure

3. The participants are the divided into 4 or 5 subgroups based on the number of
participants.
4. The subgroups are allowed to select any one of the above problems.
5. They are given 30 minutes to plan and to practice role plays separately.
6. The subgroups then perform the Role Plays.
7. Feed back is recorded after the performance of 4 or 5 groups which is listed out on
the board.
8. Root cause of each problem is analyzed by the participants.
Tips to Facilitators: The facilitators has to be familiar with the Role Play Method.
Possible Variations : None
Learning Indicators:
1. Questions can be asked individually and responses are elicited on the problems of
Society and on the root causes.
2. Few participants may be allowed to explain their own village situation.
Topic :2 Definition of a womens SHG.
Objective : To make the participants understand the definition of a SHG.
Pre- session preparation : None
Contents :The definition of a womens SHG should include the salient points given :
1.
2.
3.
4.
5.
6.
7.
8.

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.

The facilitator divides the participants into sub- groups.

Ask the participants to discuss on the definition of a SHG.
Allot 15 minutes for discussion.
Allow each group to make their presentations.
Facilitator has to note down the points brought out by the subgroups.
The facilitators can summarize and make the participants to come to a common
understanding as given in the CONTENTS.

Tips to Facilitators : None

Possible Variations: The definition points can be brought out by discussing in the plenary.
Learning Indicators :
1. All the participants should be able to list out the salient points to define a womens
SHG.
2. Ask the participants to do a write up on the definition of a womens SHG. Individually.
Topic :3 Need for womens SHG
Objective : To enable the participants to realize the need for womens Self Help Group.
Pre-session preparation :None
Contents :
1. There is lack of awareness among poor women which results in them being exploited
by their own society.
2. Though there is an increased workload for women, their work outside the house and
their contribution to the family and to the society is not recognized.
In view of the above, the women need to come together so that their socio-economic goals
and objectives can be achieved.
1.
2.
3.
4.
5.
6.

Women can obtain mutual benefits.

SHG becomes a forum for expressing their needs/ views/opinions and feelings.
SHG is also be a forum for sharing and interaction on different topics/ issues.
Women gain strength by uniting themselves.
More qualitative and quantitative work can be achieved through their joint effort.
To solve their own 2 village problems.

How to conduct :
1.
2.
3.
4.
5.
6.

Divide the participants into 4 sub-groups.

Allot a topic to 4 groups for discussion.- What is the need to form Womens SHG
Give 15 minutes time for discussion.
The sub- groups after discussion make their presentations.
The facilitator consolidates the presentations of the 4 sub-groups.
The facilitator concludes on the necessary of forming women SHGs.

Tips to Facilitators: None

Possible Variations: A role play on the need for womens SHG can be conducted.

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)

Divide the participants into four groups.

Announce the topic for group discussion how top form a womens SHG.
Allot 15 minutes time to each group for discussion.
Ask each group to present the discussed points in the large group.
The facilitator can consolidate the points shared by the groups.
The facilitator can add on any points not shared by the participants.

Tips for Facilitators : None

Possible Variations :
1. The facilitator can get experienced animators / representatives to share their
experience in forming SHGs.
Learning Indicators :
Conduct a quiz programme or group discussion to know the level of understanding regarding
formation of a SHG among the participants.

Topic :5 Criteria for the selection of SHG members

Objective : To make the participants aware of the selection of eligible members for the SHG.
Pre- session preparation : None
Contents :
The following are the criteria to become members of the SHG :
2. People living above the poverty line can also form SHG.
3. Belonging to the same village or locality.
4. Age group between 21 to 60 years.
41

5.
6.
7.
8.

Voluntarily coming forward to become a member of the SHG.

Agrees to follow the rules and regulations of the SHG.
Willing to attend the SHG meeting regularly.
The member is accepted by all others.

How to Conduct:
1.
2.
3.
4.
5.
6.
7.

Divide the participants into sub groups.

Explain the topic for discussion.
Allot 15 minutes for discussion.
Discussed points can be written on a chart paper.
The sub- group present their points before the large group.
The facilitator can ask for opinions from the other sub-groups after each presentation.
The exercise can be completed by the facilitator by adding the points left out by the
sub- groups.

Tips for Facilitators : None.

Possible Variations : Instead of conducting the session through Group Discussion , the
facilitator can elicit the criteria in a plenary session.
Learning Indicators :
1. Ask the participants to do a write up on the criteria for selection of SHG members.
2. Ask questions to the participants to elicit responses on the criteria for selection of
members to SHGs.
Topic :6 Group Dynamics
Objectives :
1. To make the participants realize the importance of process? During a group
discussion.
2. To enable the participants to understand the dynamics involved/ played by each
member in a group discussion.
Pre- session preparation :The facilitator has a topic to be given for group discussion.
Contents :
In any group discussions two factors are involved.
If we concentrate only on the Contents, we can get more quantity of information but
the quality of the information will suffer. Hence we need to concentrate on the Process of a
group discussion.
A good discussion should have a proper mix of both Contents and process. This will
result in improvement in the quality of discussions held and decisions taken.
Dos for a Group Discussion :
1.
2.
3.
4.
42

Have a facilitator for the group.

Enable each participant to participate in the Group Discussion.
There should be a recorder.
Encourage silent members

5. Respect everybodys opinion and views.

6. There should be clarity of the subject.
7. Be calm/ have patience.
8. Listen carefully during the discussion.
9. Do observe the process.
10. Review the proceedings/ decision taken.
11. The participants should not deviate from the subject.
12. Do not interrupt others.
13. Do not force your opinion on others.
14. No sub- group or side discussion.
15. Do not determinate the discussion.
16. Do not criticize.
17. Do not have biases.
18. Do not leave the group during discussion.
19. Do not be disinterested.
20. Do not hurry up the discussion.

TOPIC: 7 Participatory/Consensus Decision Making

Objectives:
1.To make the participants aware of participatory decision making.
2.To improve participation of all participants.
3.To develop the decision making skill of the participants.
Pre-session preparation
1.The facilitator should have copies of the situation to give as a topic for discussion.
2.Simulation game- Sinking ship.
Contents
1.The decision by consensus by the group member will be a permanent decision and
advantageous to all.
2.A few members responsible for taking decisions is acceptable only in an emergency
situation.
3.Decisions taken by voting may result in sub groups not accepting the decision.
How to conduct
1.Divide the participants into two groups.
2.Explain the situation to the group.
Situation : Sinking ship
One ship which has the following person listed below is sinking. One small boat which can
accommodate only 5 is coming towards the ship. The participants have to decide on the 5
people who can be saved.

43

Doctor

Pregnant Woman

Engineer

Drunkard

Farmer

Social worker

Old Lady

Child

MLA

Blind Woman

Teacher

Handicapped Man

3.Allot 20 minutes for discussion.

4.The facilitator then up the discussion.
Tips to facilitators:
1.The facilitator can ask for solution taken by individual participants, & then in their
sub-groups.
2.Elicit the solutions expressed in different sub-group.
Possible variations: Instead of sinking ship, it can be Fire in a building.
Learning indicators:
1.Ask the participants at random regarding the topic.
2.Conduct sub-group discussion.

Topic :8 Characteristic of a good SHG

Objective: To make the participants aware of the characteristics of a good SHG
Pre-session preparation: The facilitator should have a through knowledge of the
characteristics of a good SHG
Contents
The characteristics of a good SHG are
1.Size of the Group
Should have 10-20 members
Advantages: a .Easy to handle/manage a small group
b. Everybody can participate
c. Rotation of loans becomes easier
2.Dropouts
The dropout rate should be less than 25% at the first year
3.Meetings
There should be regular SHG meetings i.e. weekly once
4.Place
a. They should have a fixed place for SHG meetings.
44

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

5.Individual Pass Book

6.Attendance Register

7.Receipt and Payments Vouchers

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

b. It should be lesser than the interest charged by money lenders.

14.Financial Management
a. There should be proper utilization of loan by the beneficiaries
b. There should not be even a single instance of mis- utilization or misappropriation of
the fund available in the SHG.
15.Common Fund
a. The common fund available to SHG should be used regularly
b. Rotation of Capital is a must & it has to respond to the consumption and other
needs of SHG members in a judicious manner.
16.Annual Action Plan
SHG should prepare Annual Action Plan after 6 to 8 month from the inception of the
SHG.
17.Programmes for Village Development
The SHG Should do atleast a few Village Development programmes like. Tree
plantation, Tubewell drilling, sore well platform cleaning, proper garbage disposal,
Street lights, etc.
18.Rotation of Leadership.
a. Representatives should be changed once in a year on regular basis.
b. All the members should be aware of leadership rotation and development
among all members.
How to conduct
1.Dive the participants into 4 groups.
2.Ask each group to discuss on the characteristics of good SHGs by giving them 5-10
minutes time.
3.Ask each group to present their report in the large group.
4.Make a consolidated list of characteristics of a good SHG.
Tips to facilitators
The facilitator should be able to clarify the doubts by illustrating realistic examples of
good SHG.
Possible variation
1.Elite the characteristics of a good SHG IN PLENARY.
2.Debate on characteristics of good & bad SHG.
Learing indicators
Eliciting the answers from the participants by conducting a quiz programme.

46

Topic :9 How to facilitate SHG meetings

Objectives :
1. To differentiate between an active and less active SHG.
2. To make the participants realize the need for proper facilitation of SHG meetings.
Pre- session Preparation :
The facilitator should have a thorough knowledge on facilitating SHG meetings.
Contents :
Proper facilitation of SHG meetings results in active SHGs. The indicators of active and
less active SHGs are given below:Active SHG

Less Active SHG

Regular attendance in meetings

Irregular attendance in meetings.

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.

before solving one

on to another for

The members do regular savings.

The members have irregular savings.

Repayment of the loan is regular

Repayment of loan is irregular.

The Animators and representatives have No cordial relationship among SHG

a good relationship with the SHG Members.
members
Participation is high

Participation is low.

Decisions are very participatory in nature

Decisions taken without consensus

All members aware of the activities of Some members

SHG.
activities of SHG.
Proper documentation of SHG meetings

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

Tips to Facilitators : None.

Possible Variations :
The facilitator prepares the chart covering the points on how to facilitate a SHG meeting and
conducts an input session.
Learning indicators :
1. Small group discussion and presentation on proper facilitation.
2. Through write ups by participants on proper facilitation.

Topic :10 Attendance Register

Objective : To make the participants realize the importance of Attendance Register.
Pre-session Preparation :
1. The facilitator has an used Attendance Register.
2. Few specimen formats of the Attendance Register book.
Contents :
1. Attendance Register is used to mark the member present or absent on the day of
the meeting.
2. To absentees are found easily.
3. Frequent absentees are advised not to be absent for the meetings.
4. the regular late comers, if any , can be found out and motivated to come on time.
5. High attendance is a characteristic of a good SHG.
How to Conduct:
1. The facilitator explains the importance of Attendance Register in plenary.
2. The facilitator conducts a mock exercise in the plenary.
3. The facilitator draws the columns on the black board and marks the attendance for
the mock SHG meetings.
4. Once the mock exercise is over, ask the participants to discuss in their sub- groups
the importance of Attendance Register in a SHG.
5. The sub- groups make their presentations.
6. The facilitator consolidates and then summarizes the discussion.
Tips to Facilitators : None.
Possible Variations : A mock SHG meeting can be conducted to highlight the importance of
attendance in meetings.
Learning indicators : Ask the participants to enter a model attendance format.
Some additional pro forma :
Proforma of Attendance Register:
48

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

Topic : 11 Writing of Meeting Minutes/ Resolution Book (MM/ RB)

Objectives:
1. To give awareness about the Meeting Minutes/ Resolution Book.
2. To enable the participants to write the Meeting Minutes/ Resolution book.
Pre- session Preparation :
The facilitators keep ready a model of Meeting Minutes/ Resolution Book.
Contents :
1. Meeting minutes/ Resolution Book in a SHG is a Mother Book recording all the
details of the SHG.
2. MM/ RB should have date of meeting , meeting No, attendance , time etc.
3. It should record a proper agenda.
4. Agenda points , process of discussion and decision taken has to be written in it.
5. Money transactions (received and issued to the member, expenditure details, loan ,
savings etc) has to be recorded in detail.
6. Basic information of the SHGs like Bank A/c no Inception of SHG , benefited
members ,Roles and responsibilities of Animator, Representatives and members etc
has to be recorded in MM/ RB.
7. Policy changes made by SHGs.
8. Rules and regulations and any amendment made should be minute properly in this
book.
9. Signatures of all members, which will ensure, the acceptance of decision taken/
resolution passed during the meeting.
10. Minutes should be legibly written and understood by all.
11. Proper recording writing of minute book is an indicator of the effective functioning of a
SHG.
How to conduct :
1. The facilitator should show one model meeting minutes/ resolution Book and explain
in detail in the input session.
2. Divide the participants into four groups.
3. Ask them to go through the model Meeting Minutes Book and discuss the points
mentioned in the Book.
4. Conduct a dummy exercise on writing the Meeting Minute Book.
5. Give them some topics, that could be discussed in SHG meeting, and ask them to
write the minutes based on those topics.
6. Allot 20-30 minutes for preparing the minutes.
7. Facilitate the sub- groups in preparing minutes.
8. Ask each group to present their minutes.
9. The other groups can share their views on the presentation of the Minutes Book.
10. The facilitator notes down the important points that has to be mentioned in the Minute
Book like date, time , No. of SHG members, Agenda points etc.
49

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.

TOPIC: 13 Roles and Responsibilities of Animators and Representatives

Objectives
1.To make the Animator and Representatives to understand
responsibilities.
52

their roles and

2.To improve the involvement of Animators and Representatives in the proper

functioning of the SHG.
Pre-session preparation
1.Have a list of role and responsibilities of Animators and Representatives.
2.Preparation of questions for Quiz programme.
Contents
Role of Animators
1.To convene and conduct womens SHG meeting at regular intervals.
2.To motivate the members to save regularly.
3.To ensure proper rotation of savings.
4.Maintenance of Books & Records and submission of reports.
5.Attending all the meeting/training related to the project.
6.Facilitating the SHG to identify appropriate income generating activities for
members.
7.To co-ordinate with Banks for getting loan & ensure prompt repayment.
8.To disseminate information received during the training session to the members.
9.Work for improvement of literacy and innumeracy of the SHG members.
10.Disseminate information to members about government welfare schemes,
especially in relation to health and family welfare, education, etc.
Role of Representatives
1.Convene the SHG meeting at regular intervals.
2.Management and effective use of SHG savings and loan funds.
3.Operate bank account jointly with Animator.
4.Carry out decisions of the SHG.
5.Mobilise local resources for benefit of the SHG & village.
6.Assist the SHG in the proper selection of beneficiaries for economic activities.
7.Ensure proper asset creation and motivation for loan repayment.
8.Represent the SHG in meetings and trainings.
How to conduct
1.The group is divided into two, like
I. Animators group
II. Representatives group

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 :

Decide on the number of sub-groups based on the number of participants.

Possible variations
1.By lecture method
2.Elicit the points from the participants regarding the topic in the plenary.
Learning indicators
1.Conduct a Quiz programme to understand the level of learning of the participants.
2.Ask the participants to do a write up on the roles & responsibilities of the Animators
& Representatives.

TOPIC: 14 Rotation of representatives

Objectives
1.To make the participants understand the importance of change of representatives
2.The need for collective leadership development among SHG members.
Pre session preparation: none
Contents
1.The need for Rotation of Representatives
2.To enable all the SHG members realize their role not only as SHG members but
their responsibility of management as SHG-Representatives.
3.To develop collective leadership
4.The Rotation of Representatives is a must for all SHGs, which has completed one
year.
How to conduct
1.The facilitator divides the participants into 4 sub groups.
2.The facilitator asks the sub groups to discuss the importance of change of
Representatives in SHGs and need for leadership development among SHG
members.
3.Time allotted for discussion is 10-15 minutes.
4.The selected participants from each sub group will present their discussion in the
54

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.

Topic : 15 Definition of Savings

Objective :To make the participants understand the definition of savings
Pre- session Preparation : None.
Contents :
Saving is generally defined as : Income Expenditure = Savings. i.e.. The surplus money
that is left after spending the income on different expenses.
Saving is defined as a part of the income which is kept aside by sacrificing a portion of their
needs.
The above definition is in the context of the rural poor.
How to Conduct :
1.
2.
3.
4.
5.
6.

Divide the participants into four groups.

Ask them to define savings.
Give 5 minutes for discussion.
Ask the four groups to present their discussion points.
Cosolidate the discussion points.
Evolve a common definition for savings as given in contents.

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.

Topic :16 Need for savings

Objective : To make the participants aware of the need/ importance of savings.
Pre- session Preparation : None.
Contents :
Savings helps to meet the following :
55

1.
2.
3.
4.
5.
6.

To meet emergency medical expenses.

Purchase of provisions for family when there is no employment.
To escape from the clutches of the money lenders.
Helps to start income generating programmes.
To buy assets, which is a security for the future.
Develop confidence to meet difficult situations like drought , flood etc.

How to Conduct :
1.
2.
3.
4.

Divide the participants into small groups.

Ask them to discuss on need for savings.
Let each group present their findings.
The facilitator concludes by consolidating the presentations made.

Tips to Facilitators : None

Possible variations: Elicit the points on the need for savings in a Plenary session.
Learning Indicators :Question few participants on the need/ importance of savings in SHGs
and elicit their responses.

Topic : 17 Frequency of Savings

Objective : To explain the importance of weekly savings.
Pre-session Preparation : None
Contents :
1. The amount of savings is higher in the weekly savings when compared to monthly or
fortnightly savings.
2. Weekly savings will strengthen the savings habit among the members , since they
save more number of times in a month.
3. The amount saved weekly is small, but it enables them to save regularly.
4. Gradually encourage the members who save monthly or bimonthly to inculcate
weekly savings habit, which in turn will increase their savings amount.
5. Weekly savings also increase the Common Fund of the SHG.
How to Conduct :
1. Divide the participants into sub groups.
2. Facilitate the groups to discuss about the merits and demerits of monthly, bimonthly
and weekly savings.
3. The facilitators should compile the importance points discussed during the group
discussion on the salient features of weekly, fortnightly and monthly savings.
4. Enable the participants to understand and realize the importance of weekly savings.
Tips to facilitators: The facilitator should emphasize that the weekly savings is better when
compared to fortnightly or monthly savings.
Possible Variations: The session can be conducted as a plenary or as a debate.

56

Learning Indicators : By asking the participants as random on the merits of Weekly

Savings.

Topic :18 Fixed/ Optional Savings

Objectives :
1. To highlight the differences between Optional and Fixed savings.
2. To emphasize the importance of optional savings.
Pre-session Preparation : The facilitator should have a clear knowledge about the different
types of savings. (Fixed / optional)
Contents :
Fixed savings- saving the same amount at every meeting or once in a month.
Optional savings The members save any amount according to their capacity at each
meeting.
1. Optional savings brings in more funds to the SHG over a period of time.
2. The differential savings pattern motivates the less amount savers to increase the
savings as and when they can.
3. In times of more work availability, good harvest and consequent surplus , the
members are able to save more.
4. Members savings capacity is on the rise and it boosts up their confidence.
5. If the members find it difficult to mobilize the savings, the member has the option to
do at least a minimum savings.
6. In fixed savings, fearing groups pressure, some members may borrow elsewhere and
pay the savings amount, which is not real savings, or when they can save more, they
have the option to save a fixed amount only.
Hence it is clear that the optional savings is better than the fixed amount of savings.
Therefore , the SHG members should be motivated to do the Optional Savings or to change
over to the Optional savings gradually. (in case of SHGs who are doing Fixed savings)
How to Conduct :
1. The participants are divided into sub-n groups.
2. The participants in the sub- groups are asked to discuss the merits and demerits of
Fixed and Optional savings.
3. Allot 10 minutes for discussion.
4. The participants then present their discussions before the large group.
5. The facilitator notes them down and then summarizes based on the Contents.
Tips to Facilitators : The facilitators should be cleared thorough about the merits and
demerits of optional and fixed savings.
Possible Variations :
Call SHG members who have adopted optional savings to share their experiences.
Conduct a mock debate on Fixed v/s Optional savings.
57

Learning Indicators:
Get the confirmation of the participants by eliciting from them the importance of optional
savings.

Topic : 19 Savings Ledger

Objective : To make the participants understand the importance of a Saving Ledger.
Pre- session Preparation :The facilitator has the specimen formats of the Saving Ledger.
Contents :
1. Savings ledger is an important document for the SHG as it gives the details of the
date and savings amount collected from the SHG members.
2. It also shows the regularity of savings by the SHG members.
Specimen Format :
Savings Ledger:

Name
Date

L. F. No

Savings during the Total Cumulative

month

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

Tips to facilitators : None.

Possible Variations: Conduct a mock exercise on savings in a SHG.
Learning Indicators :
The participants when questioned randomly highlight the importance of savings ledger.
TOPIC: 20 Criteria for giving loans in a SHG
Objectives:
1. To make the participants understand the eligibility criteria for giving loans in a SHG.
2. To enable them to classify the different needs of SHG members.
3. To develop the skills of prioritizing the loan needs of SHG members.
4. To enable the participants to develop proper schedules for repayments/recoveries.
Pre session preparation: none
Contents:
The criteria of giving loans are:
1.Regular attendance of SHG members in the meeting.
2.Member do regular savings in the SHG.
3.The total savings amount of the SHG is enough to cover the loan needs of the
members.
4.The SHG member has repaid the loan.
5.The purpose of loan is very needy & acceptable to all members.
6.The loan is planned in details & in advance.
7.the amount of contribution for the loan form the loaner.
8.Loan amount, rate of interest, repayment schedule & period of repayment to be
fixed by the SHG members before disbursing the loan.
How to conduct:
1.Ask the members to sit in a circle.
2.Explain the situation for a dummy exercise which is given below:A SHG has Rs.2000/-as Common Fund and members have to ask the loan for
various purposes for different amounts.
a)Educational Expenses for Mrs A

Rs.2000/-

b)Medical Expenses for Mrs B

Rs.500/-

c)Festival Expenses for Mrs C

Rs.1000/-

d)Marriage Expenses for Mrs D

Rs.2000/-

e)Domestic Expenses for Mrs E

Rs.500/-

f)Petty Shop Expenses for Mrs F

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.

Topic : 21 Loan Ledger

Objective : To make the participants aware about the importance of Loan Ledger.
Contents :
1. To know the various types of credit given to SHG members.
2. To know the repayment and recovery position.
3. To know each SHG members loan details.
How to Conduct :
1. Divide the participants into 4 groups.
2. Ask them to discuss on the importance of Loan Ledger.
3. Allow the groups to present their discussion.
4. Consolidate the discussion points.
Tips to Facilitators :
1. It is better to use the model format to make the participants understand easily.
2. It is easy to demonstrate through writing on chart papers.
Possible Variations: The session is conducted as an Input Session.
Learning Indicators:
The participants when questioned recall the importance of maintaining Loan Ledger.

Topic :22 Opening a Bank Account

Objective : To guide the participants regarding the procedure for opening the Bank account.
Pre-session preparation :
1.
2.
3.
4.
5.
6.
7.
8.
60

The facilitator should have the following :

Specimen of Account opening form
Specimen of signature card.
Photos of the office bearers of the SHG.
SHG rubber stamp and pad
Specimen resolution copy.
Bye- laws of SHG (Rules and Regulations)
Specimen of Cash pay in slip.

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.

Account Opening form

Specimen signature
Photos of Office bearers.
Resolution copy
Bye laws copy
Pay in slip.

After obtaining the Managers signature, cash is paid in cash counter.

10. The SHG gets a new SB A/c number , Pass Book and Counter foil.
How to Conduct :
The facilitator conducts an Input Session explaining in detail , the various steps involved in
opening a Bank Account.
Tips to Facilitators:
Show specimens of the Bank Account opening formats.
Possible Variations :
1. A mock exercise can be conducted for opening of Bank Accounts in which the
participants are divided as SHG members. The facilitator and the participants
conduct a role play on opening of Bank Account.
2. Bank staff can be invited as resource person for an Input Session.
Learning Indicators:
Ask few participants regarding the procedures adopted in opening a Bank Account.
Topic : 23 Cash Book
Objectives :
1. To make the participants aware about the importance of Cash Book in a SHG.
2. To enable the participants to write the Cash Book properly.
Pre-session Preparation :
1. Models of Cashbook
2. Formats of cash book to practice.
61

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

Date: , Opening Balance B/F100.00

Savings:
Date
DTLS
Rcpt.
Paymts
No.
No.

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.

Topic : 24 Receipts and Payment Voucher

Objectives :
1. To make the participants realize the importance of Receipts and Payment Voucher .
2. To enable the participants in filling up the Receipts and Payment Voucher.
Pre session Preparation :
1. Modules of Receipts and Payment Vouchers.
2. Formats of Receipts and Payment Vouchers to practice.
Contents :
1. Receipts are given for all the income to the SHG.
2. Payment Voucher is given for all the expenses the SHG has incurred.
3. the financial position of SHG can be found out when tallied.
How to Conduct :
1. The facilitator should first explain the purpose of maintaining Receipts and Payment
Vouchers in a SHG.
2. Distribute the specimen formats to all participants.
3. Explain the Receipts Voucher by making few entries on the board/ chart paper.
Receipts and Payments Voucher Model :
..SHG

Date:

Receipts
We received from XXX towards the following :
i)
ii)

Particulars
Savings
SHG Loan Recovery

Rs

a) Principal
b) Interest
iii)
iv)

Bank loan recovery

Other Receipts (fine)

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

Ask the participants to make entries in the specimen formats.

Check the entries made by the participant.
Likewise , introduce the Payment Voucher to the participants.
Explain by making few entries of in the specimen Payment Voucher on the board/ chart
paper.

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.

8. Conduct a Dummy exercise by giving example to the participants.

9. Allow the participants to fill up the format individually.
10. Facilitate them in filling up the format.
11. Repeat the entire exercise if needed.
Tips to facilitators: None
Possible Variations :
The dummy exercise can be conducted in sub-groups to enable the participants of the subgroup to check the entries made by the participants of the other sub groups.
Learning Indicators :
None
Some Additional Proforma:
Receipt book proforma:
Name of the Village Organization :

Village:

Block:., Cash/ cheque No.Date:.

Received from..
Sl No

Particulars

Membership fees

Share capital

Savings

Loan installment principal

Loan installment interest

Others

Amount

Total

Community Activist:
President/ secretary/ treasure
65

Topic :25 General Ledger

Objective :
To make the participants understand the importance of introducing and maintaining General
Ledger in a SHG.
Pre- session Preparation : The facilitator has sample formats of the General Ledger.

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.

Make sub- groups of the participants.

Explain the purpose of the General Ledger.
Write the different columns of the general ledger on the board/ chart paper.
Make one or two entries on the board/ chart paper.
Distribute the sample formats to each participant to go through it.
Ask them to discuss about the format
Clarify , if there are any questions.

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

No. of pages allotted

From

Share Capital Account

Membership Account
MS CIF Loan Account
SHGs CIF Loan Account
Interest received from SHGs Account
Interest paid to MS Account

66

To

CA honorarium
VO office rent account
VO representatives travel expenses account
Miscellaneous expenditure account

Model proforma for head of account:

Name of Account:.
Date

Particulars

Cash Book
Page No.

Receipt
Amount

Payment
Amount

Balance
Amount

Topic : 26 Individual Pass Book

Objectives :
1. To create awareness among the participants about the usefulness of the Individual
Pass Book.
2. To enable the participants to write the Individual Pass Book.
Pre- session preparation :
1. Models of individual Pass Book.
2. Sufficient specimen formats to practice.
Contents :
1. This book is given to individual group member in a SHG.
2. It has 2 parts namely. Part I- Savings, Part II- Loan Repayment.
3. The part I or the Savings- gives the remittance and cumulative savings balance of the
concerned SHG member. It is useful to find out the Savings amount remitted by the
concerned member on different dates.
4. The part II- Loan repayment , gives the details of Status of Loan repayment of the
concerned SHG member. This is the extract of the Loan Ledger.
5. The entries in the individual Pass Book should be made by the animator during the
SHG meeting
6. SHG members should have their individual pass book when they come for SHG
meeting.
How to conduct :
1. The facilitator should explain the purpose of individual Pass Book to the participants
in an Input Session.
2. Introduce the individual passbook specimen format.
Individual Pass book :
Part I: Savings:
Date

67

Saving Amount

Cumulative Amount

Initial of Animator

3. Distribute specimen formats to all the participants.

4. Explain the various heads and details of the format and make a few entries on the
board/ chart paper
5. Enable the participants to make entries on the individual Pass Book.
Part II Loan Repayment:
Given below is the specimen format.

Date

Part II : Loan Repayment:

Particulars
Loan issued

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)

Plan diagram can be copied onto the chart

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

4.5.OPPORTUNITIES AND CHALLENGES OF INSTITUTION BUILDING IN ASSAM

ROLE OF EXTERNAL AND INTERNAL CRPS
Opportunities and Strength :
Since year 1999, a large number of rural people particularly women have been mobilized into
Self Help Groups in Assam. This has built the social capital among the rural people in the
State. SHG movement in Assam has not only provided economic benefit to its members but
more importantly created viable social capital in the form of an empowered community. Most
significant social aspects wherein rural women in Assam has made tremendous progress
are:

70

Increase in overall awareness level about their status and approaches for
development.







Social empowerment in terms of improvement in their confidence, self perception,

communication skill and other behavioral changes.
Participation in developmental activities (participation of women SHGs in Gram
Sabhas have increased manifold).
Mobility of rural women has increased for various socio- economic developmental
activities.
Decision making capacity at household level as well as at community level has
increased and become more meaningful.
Bargaining and receiving capacity of rural women have increased thereby making
socio- economic programmes and facilities more accessible to rural poor.

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)

Culture, custom , tradition

Absence of confidence
Inaccessible services
Social structural inequalities., family restrictions, inadequate undersanding of their
own abilities
Dependence mentality
Inadequate understanding of the benefit of joining SHGs
Inadequate repport with the authorities and administration
Male domination
Absence of good leaders

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







To identify felt needs.

To involve themselves in the process of development.
To Solve problems concerning the majority.
To mobilize local resource and
To build confidence among themselves.

Overcoming difficulties in mobilizing the excluded women:

CRPs will develop strategies to overcome the hurdles of rural women in joining the Self Help
Groups in the following manner :
 Proper analysis of the people and the community.
 Rapport building with each and every community and their leaders.
 Involvement of formal and informal leaders to motivate women to join the Self Help
Group movement.
 Make them understand the importance and benefits of joining the Self Help Groups.
 Involve the excluded women in finding out and analyzing root causes of community
problems.
Techniques for ensuring active participation of women:

A close relationship with each family and community by day to day contact.

Informal sharing of development concerns and problems.

Proving useful to the community with sound knowledge of the project

Building rapport with the community

Demonstration of concerns for the peoples cause without bias of any kind to any
member in the community.

Dialogue with village formal leaders , local officials, teachers, respected leaders in
different communities and caste groups.

Initiating development process with such activities which can show quick results and
establish credibility.

Listening to everybody and then making decision.

72

CHAPTER 5
COMMUNITY RESOURCE PERSON STRATEGY (CRPs)

Introduction and Objective:

Community Resource Person is a person who can lead a group in his special area of
competence. In State Rural Livelihoods Mission, community resource persons are the active
members of the SHGs who come out from poverty through SHG movement and can motivate
the POP to come into SHG network. The poor are the primary focus of the project. There are
many factors that prevented women from the poor and POP families from joining SHGs. So,
first step in this regard is Social Mobilization. But the process of social mobilization is not
easy and a large number of poor families are continued to be reluctant to join groups which
requires a lot of counselling to make the move. To facilitate such process it is proposed that
active women members from the SHGs should be selected, trained and deployed so that the
impact would be high when women of the same background shared their experiences.

Community Resource Person:

There are two types of CRPs one is Internal and other is External CRPs. Internal CRPs are
the community persons from within the block and external are from outside the block/district
or state. A systematic process of identification and orientation is given for the CRPs before
their services are utilised. CRPs are paid a fee for the services and the time provided for the
project in addition to meeting the travel and food costs by the project. CRPs are expected to
deliver defined set of outputs in a given time frame and CRPs are used primarily as an
interim strategy to trigger the process and support the project staff and work on a campaign
mode to address specific tasks especially on a scale in a given period of time.

Characteristics of Community Resource Person:

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

practices(panchasutra, book keeping).

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 capacity to motivate other poor women to form SHGs.

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:

Visiting the villages allotted in pairs and staying in the villages

Analyzing the situation in the Village
Sensitizing the family members, especially about SHGs
Sensitizing the key persons of the village about the SHGs
Orienting the women to form SHGs
Resolving the conflicts of defunct SHGs to function again
Identifying active members of the villages and training them throughout their stay at
the village so that they continue the facilitation process after the CRPs i.e.,
developing a cadre of CRPs at the Villages

Village Action Plan of the CRP teams:

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.

Prepare a status report to have a base line.

Form groups with excluded poor and poorest of the poor women.

Conduct group level training on management norms and financial management

norms.

Help SHG members to identify book keepers.

Impart training to the book keepers.

Organize handholding training on record keeping.

Impart training on preparation of micro credit plan and facilitate preparation of the
same.

Impart training on formation of village organization and their management.

Select active women and train them up as CRPs.

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.

i)External Community Resource Person in Blocks:

In the 1st year social mobilization, institutional building, capacity building of SHGs, federation
development etc will be done by external CRPs and Project Resource Persons from the
resource agency and project staff together in the Six Resource blocks.From Second year
onwards internal CRPs will also emerge to be deployed in the field to form SHGs and VLFs
in resource blocks.
Internal CRPs developed in the resource blocks will be engaged in other intensive
blocks as external CRPs.
In each resource block 4 external CRP team will be placed from outside the state(SERP).
Each team will consist of 3 women CRP, one senior book keeper and one animator
altogether 5 members. Total 24 external CRP teams will be required for 6 resource blocks.
In each block 4 external CRP teams will provide 150 days of service in a year. 30 days in
one round, 150 days in five rounds by a team. 4 external CRP teams will have 20 rounds in a
year in one block. Per year there will be 120 rounds in six blocks by 24 external CRP teams.
So, total 240 rounds in two year by 24 external CRP teams in six resource blocks.
There will be two Project Resource Persons in each six resource block. Total 12 project
resource persons will be positioned in the six resource blocks from the resource agencies
who will anchors CRP Strategy in the blocks.

75

External CRP movement plan in a resource block

1 Cluster

1 Cluster
Coordinator in
each Cluster

1CRP team

10 villages

1. For convenience resource block divided into 4 clusters.

2. One CC(Cluster Coordinator) in each cluster
3. Four CRP teams allotted to the block @ one team per cluster.
4. Each CRP team covers two villages per month and provides 150 days of service in a
year.
5. Therefore each CRP team covers 10 villages in a cluster, organizes 80-100 groups in
a year.
6. In one year the four CRP teams totally organize 300-400 groups in the resource
blocks (This includes formation of new groups, revival of defunct groups and
strengthening existing groups.
Village Action Plan of the External CRP team :
1. Meet the Village Headman and village elders.
2. Conducts a general meeting of all SHGs and left over poor and makes diagnostic
study of the status in the village.
3. Prepares a status report to have a baseline.
4. Forms new groups with poor House Holds.
5. Revives defunct groups.
6. Strengthens existing groups introducing Panchasutras.
7. Facilitates meetings of the groups during nights.

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.

ii)Internal CRP in blocks:

In each block internal CRP will emerge during the process. 3 Internal CRP Team will
generate from 1 VLF form.The internal CRP teams and rounds in each block 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.

Concentration of households belonging to poorest of the poor families.

Social exclusion due to various socio economic and geographical reasons.

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

At the initial stage a series of sensitization programmes, informal interactions,

exercises for shared learning will be undertaken by the CRPs to orient the external
CRPs to the local situation. Participatory methods will be applied in the process.

Internal CRPs to carry forward the institution building process:

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.

Internal CRP teams will be nurtured and expanded systematically to achieve

horizontal saturation of institutional building process without depending on external
CRPs.

Professionals, community service providers, extension workers after immersion and

exposure in the villages and working with external CRP teams will substantially
improve their institution building skills and take up all such task independently.

Cluster Coordinators & Community Activists/ Mobilizers & their Roles:

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 provide facilitation support to the SHGs and village organisations.

They should have patience, integrity, commitment and service mindedness

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.

Role of Block Coordinators /block level officials:

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.

Important Features of CIS:

Under micro plan based intervention strategy, CIS is a loan from BLF to VLF and from
VLF to SHG for implementing micro plans of SHGs and collective marketing and food
security initiatives. However it s grant to VLF in case of implementing social
development and infrastructure development activities.

BLF will support VLFs for implementing their micro plans and assume the responsibility
of appraisal, sanction, disbursement, follow up, monitoring, recycling of recovered CIS,
procurement etc will be on VLF.
CIS will come to primary federations / village organisations and it will become a part of the
corpus of the VOs. CIS will keep on revolving at VO level as SHGs will take and repay loan
from this fund. SHG may provide various types of loan to the members e.g. agriculture loan,
business loan, loan for housing, education and other needs as shown in the micro credit
plans prepared by the members. SHG members will be prioritised based on their micro credit
plan to be finance from CIF on the basis of socio economic profile and need based
assessment of the members.
VLFs will leverage loan from banks on the basis of their available corpus including CIS. CIS
component will meet the requirement of micro finance services for the poor to ensure
sustainable source of income through micro enterprises. This will facilitate different poverty
reduction and development strategies. Each poor household has got inherent capacity to
come out of poverty. That quality will be harnessed while preparing need based micro credit
plans. Poor families depend on multiple livelihood sources and may access credit from the
SHGs for various purposes in different dozes. Individual household based enterprises may
further get enlarge at higher levels for greater benefit and impact. The CIF will be used
besides supporting SHGs and members for livelihoods for other credit requirements of the
members including copping with risk and vulnerabilities.
Types of Community Investment Support:
CIS is available for the following Components:

SHG micro plans consisting of Income Generation Activities(IGA) , marketing(
working capital) and Food security initiatives

81


Social Development activities pertaining to skill development (jobs), health, debt

swapping, education etc.

Productive Physical Infrastructure including construction of storage houses, drying
platforms, milk chilling/ processing units, village procurement centers, processing
centers, common work-sheds for artisans etc and purchase of movable infrastructure
for marketing activities. The cardinal principle is that such infrastructures will result in
increase in the productivity of members. There is also an opportunity for the VLF/BLF
to collect user charges from those who are using these facilities. The infrastructure so
created are owned by the VLF/BLF.

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.

TYPES OF COMMUNITY INVESTMENT SUPPORT TO BE GIVEN TO

THE COMMUNITY LEVELORGANISATION
(BLF/VLF/SHG)

83

Sl no.

Name of the Sub Definition

Components

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

Scaling Up certain key

Interventions in Agriculture
livelihood like- Development
of backward & Forward
Linkages
,Agriculture
product
processing
,
developing local resource
persons
as
paraprofessionals for providing
technical support and to
assist the functioning of the
SHGs,Partnerships
with

Who will
Beneficiary

be

Group
of
SHG
members of Similar
Activity. Livelihood
collectives
and
producer
groups/SHG
Federations

Who will give the Utilization

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.

VLF/BLF/BMMU* (*till BLF starts

working) will give the UC on the
basis of Utilization certificate
given
by
the
Livelihood
collectives/ Producer groups

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.

value Chain partners ,

Assetization at Community
Level, skill development
,Demonstration
on
horticulture,
multilayer
farming,
Designing New
financial Instruments for
poor to enable them to
participate
in
extended
value Chain.
1.2

Animal Husbandry

1.2.1 MCP based MCP based financing to SHG members

Individual Livelihood SHG
members
for
Fund
household level assetisation
,facilitate access to Credit
from banks and other
sources ,fulfill the financing
need for existing animal
husbandry based livelihood
activities
like Dairying,
poultry
farming,
pisciculture,goatery,
pig
breeding
and
rearing
,supporting initiatives for
mitigation of livelihoods
risks/failure including due
to
outbreak,
Natural
calamity etc, disability and
asset
replacement
insurance

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

1.2.2 Community based Scaling Up certain key

Livelihood
Investment Interventions
in
Animal
Fund
husbandry livelihood like ,
Dairying,
poultry
farming,pisciculture,
goatery,pig breeding and
rearing,
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,Skill
development, demonstration ,
Assetization at Community
Level,
Designing
New
financial Instruments for poor
to enable them to participate
in extended value Chain.
1.3

Group of SHG
members
of
Similar Activity.
Livelihood
collectives and
producer
groups/SHG
Federations

VLF/BLF/BMMU* (*till BLF

starts working) will give the
UC on the basis of
Utilization certificate given
by
the
Livelihood
collectives/
Producer
groups

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

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

Non Farm Sector

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

Health Security Fund

87

through VO

Group of SHG
members
of
Similar Activity.
Livelihood
collectives and
producer
groups/SHG
Federations

MCP based financing to be SHG members

extended to members at
agreed concessional rates to
address critical health risks.

VLF/BLF/BMMU* (*till BLF

starts working) will give the
UC on the basis of
Utilization certificate given
by
the
Livelihood
collectives/
Producer
groups

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

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

4.2

Education Security Fund

MCP based financing to be SHG members

extended to members at
agreed concessional rates to
address critical health risks

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

Food Security Fund

MCP
based
financing
extended to the members at
agreed concessional rates
specifically to address the SHG members
food requirement of the group
members

VLF will submit UC to

BLF/BMMU* (*till BLF Starts
working) on the basis of the
Fund utilized by the VLF on
Food Security

Grant to BLF
and sub grant
to VLF.VLF will
grant to SHG.
SHG will give it
as loan to SHG
members.

4.4

Debt Swapping Fund

MCP based financing to be

extended to members at
agreed concessional rates to
address critical debt .
SHG members

5.

Revolving Fund

88

Initial capital to Enhance the SHG members

creditworthiness of the groups
and also to satisfy their initial
needs.

BMMU*/BLF/VLF(*Till the
BLF Start working) will give
the UC on the basis of
utilization

SHG/VO will submit the UC

to BMMU*/BLF(*till BLF
starts working) on basis of
Loan assets created at
SHG/VO based on MCP of
the Individual SHG.

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

Capital Subsidy will be SHG members

provided as catalytic capital to
the groups for building their
credit worthiness to take up
full range of activities.

SHG/VO will submit the UC

to BMMU*/BLF(*till BLF
starts working) on basis of
Loan assets created at
SHG/VO based on MCP of
the Individual SHG

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

From members to the SHG

From SHG to VO
From VO to BLF

Up to 24 monthly installments
Up to 60 monthly installments
Up to 120 monthly installments

7 steps of Micro Credit Plan:

The seven steps of MCP is adapted from SERP,Andhra Pradesh
1. Comprehensive information of the Group

Details of the SHG.

Details of the funds of the SHG.
Grade obtained by the SHG through financial transactions.
Age of the SHG.
Details of the membership in the VO.

2. Comprehensive information of the members of the Group

Each and every member of the SHG contemplating the present status of the family.

Members of the family and their occupation.

Their income.

Family expenses.

Family debts.

Their problems.
3. Individual Income and Expenditure statement of the member

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.

4. Estimate of the Income Generating Activities of the members

Explaining the activities to be taken up, enhancement of capabilities through investments.

Methods of getting out of problems through investment.

Present income through existing activities and assessment of additional income that
can be earned after investment.

To make them think of the ways and means to get the investment.

Explaining the activity to be taken up.

Explaining the investment.

Explaining the method of repayment of investment.

Assessment of the investment required by all the members.
5. Details of the members availing the loan in first priority

There would a problem as to which member (second priority) the money obtained
through recovery is to be given. Therefore, all the members should discuss among
themselves and prepare a rotation plan.

An analysis should be done on the basis of the details of the first priority borrowers
and a plan is to be prepared through discussion with all the members priority should
be given to :
a) Person from category of Poorest of the poor.
91

b) Women without any help.

c) Single women.
d) Poor family with no sources of income.
e) Without/ little skills.

According to the season relevant to the IGA.(Priority is to be given)
6. Details of the members availing the loan in second priority

A process is to be evolved to provide loans to the second priority members on the
basis of the principle and interest recovered according to the recovery plan and the
savings.

The process is to be evolved in a way that all the members can get loans in a certain
period based on the repayments of the first priority borrowers.
7. Memorandum of understanding between:
a) Members & SHG.
i.
All the members will work according to the norms of the SHG.
ii.
The members who availed loans from the SHG will repay the principle and
interest in accordance with the installments decided upon.
iii.
It shall show the assets to the members of the Audit Committee during the
audit.
iv.
Members who availed the loan will repay without any arrears.
v.
It shall work in accordance with the MOU reached with the SHG.
vi.
It shall send representatives to the VO meetings along with monthly report.
b) SHG & VO.
i.
It shall utilize the loan taken for consumption/ income generating activities as
indicated in the MCP.
ii.
It shall show the assets purchased at SHG to the Audit Committee of the VO.
iii.
SHG shall repay the principle and interest in installments as stipulated in
MOU with the VO.
iv.
It shall utilize the services of the mobilizers at the VO level.
c) VO & BLF.
i.
The representatives of the VO will attend the BLF meetings without fail.
ii.
VO shall attend to the trainings being imparted by BLF.
iii.
VO shall utilize the loan amount taken from BLF to the activities mentioned
only.
iv.
VO shall repay the loan amount along with principle and interest in
instalments as stipulated in the MOU with BLF.
v.
VO shall show the assets to the BLF Audit Committee during their inspection.
vi.
VO shall submit the monthly reports to BLF.
Discussions:
First discussion:
After preparing the estimate for the consumption purpose/ IGA the same should be
discussed in the EC meeting of the VO. It is quite natural that while providing the Initial
Capitalization Fund, VO may not be in existence and so the ICF amount can be given
directly to SHGs and to be returnable to the VO.

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

14. No. of small loans issued :

15. Total small loans amount in Rs. :
16. No. of big loans sanctioned :
17. Total big loans amount in Rs. :
18. Percentage of recovery at members level :
19. Over dues if any :
20. Whether group has engaged a trained Bookkeeper or not : Yes/No
21. Whether group is enrolled in VO or not : Yes/No
22. Rotation of Leadership in SHG :
23. Whether the group has good Bookkeeping : Yes/No
24. Whether the group is adopting group management norm : Yes/No
94

25. Group representatives signatures :

1.

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

Family Members Details

Land

Children

Adults

Wet

Male

Male Fem
ale

Fema
le

Dry

Member wise Socio economic Profile continued:

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

Social Grouping Based on Participants Criteria- The Larger Sub- National

Picture:

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:

Members Individual Income and Expenditure Statements

All the members of the group will sit together in the group meeting and prepare
members individual income and expenditure statements.
This statement will give details of members financial problems, indebtedness and
poverty conditions at household level.
This statement will also help in ranking the members are the poorest of the poor/
poor and others based on their incomes, expenditure and indebtedness.

Members Individual Annual Income and Expenditure Statements

Sl. No.

Items

Details

Members Name

Husbands Name

Land extent in Acres

Caste

Age

Family Members in Details

Members Individual Annual Income and Expenditure Statements Continued:

Sl. No.

Income

Amount

Sl.
No.

Expenditure

Agricultural Income

Rice (No. of
Kgs Rate
per Kg)

Husband wage Income

Daal (No. of
Kgs Rate
per Kg)

Members wage income

Other
commodities

Other family members

wage income (No. of
persons No. of days
Wage rate)

Electricity
Charges

Other sources of income

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

(6) Rotation Plan:SNo.

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

In the VO EC meeting SHG

is selected for preparation of
MCP, based on certain
criteria for SHG.

All members bring their family investment SHG

plans and finalize SHG Micro Credit
investment plan in the SHG meeting and
evolve ToP between members and SHG. It is
the first dialogue

In the SHG meeting the

members will discuss and
proceed for finalization of
MCP.

Members finalize family investment plan, at Members

household level

Members discuss family

investments at household
level.

CIS Management
Interest Rate

Repayment period
BLF

BLF 100-120 Monthly

Block Level Federation

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

Dos and Donts for preparation of MCP

Dos:
1) In the MS, VO and SHG meetings the 7 step MCP process shall be discussed
before going for preparation of MCP.
2) SHG members shall discuss and finalize family investment plan at household
level before going for preparation of MCP in SHG meeting,
3) SHG members only prepare the plan and the staff like Bookkeeper/ CA/CV will
document the plan as finalized by SHG members,
4) All members of the SHG shall be fully aware of all the details of the MCP like
proposed activities financial costs, repayment schedule and TOPs,
5) All members of the SHG shall attend the VO-EC, meeting and present all the
details of MCP.
6) in the MS-RGB meeting two representatives of VO and two representatives of
SHG will attend and present all the details of MCP,
7) MCP shall reflect all the felt needs members either income generating schemes,
education, health and social needs,
8) SHG members shall utilize the loans for activities proposed and agreed in MCP
only.
Donts:
1) MCPs shall not be prepared without training to the staff and the community on
the 7 step MCP process,
2) MCPs shall not be prepared in the SHG meeting without first finalizing family
investment plans by all the members at the household level.
3) Staff like CCs/ MBKs/ APMs/ CVs etc., shall not prepare the MCPs but only by
the Community Members,
4) Staff shall not bring the MCPs for VO-EC meetings/S-RGB meetings but only by
the Community Members,
5) SHG members shall not distribute the money equally it shall be released to the
members as per the plan only.
6) Loan amounts sanctioned under MCP shall not be diverted for other purposes
utilization shall always be as per the MCP.

102

MCP Training Plan

Sl
Subject
No.
1

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

Why Micro Credit

investment Plan
Day

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

Could they match product quality and maintain it?

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.

Survey in the field:



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

Sequence followed in doing the Surveys:

The survey is done in two ways:
1. Survey of the villages to assess the resources and infrastructure of each village as
well as the status of individual entrepreneurs and their access to different markets.
This can be termed the techno economic survey.
2. Survey of haats falling in or around the area to assess local market demand patterns.
Techno- Economic Survey:

This information is to be collected at two levels- village information and specific

information about entrepreneurs already engaged in micro enterprises.

The village profile questionnaire aims at collecting information such as resources,

infrastructure , support services and skills available for micro enterprise activities at
the village level.

The individual members profile questionnaire seeks specific information about

members engaged in these activities such as sources of procurement of raw
material, available of markets and the problems faced in managing the micro
enterprises.

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

The Market Approach :

The market approach to micro enterprise development aims to help groups to earn or
increase their income through an economic activity that keeps the demands of market in
mind. But this does not happen in isolation. What is also kept in mind is the role of the
groups in existing economic activities . This could be in processing, production or
procurement and skills and experience they have gathered in the process. Existing skills or a
potential for them is then matched with the availability of raw material and infrastructure that
altogether make up the supply side. The dynamics between demand and supply constitutes
the market approach and is the key to micro enterprise planning in detail. This approach
helps to create growth through improved economic returns.

Rationale for a detailed survey of the haat:

In Assam rural haats/ markets play a crucial role in rural economy. Haat information can help
in identifying new opportunities for SHG members. It will also help to understand selling
practices and buying behaviour of the local area. Haat survey will give useful information,
types of products sold, their variety and quality. It will also help to get useful information
about the sources of procurement of raw material/ products for different product categories.
Haat survey will give information about investment in different activities by sellers which will
help SHGs members in getting an idea about investment requirement in different activities.
Haat survey can also be used to motivate SHG members to take up micro- enterprises.

Micro- markets for Livelihoods :

Micro markets are important for Livelihood Development as they:




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

Preparation of Micro- enterprise table on the basis of the Surveys:

Micro Enterprise Table :
Infrastructure available

Road, transport and approachable haats

Micro enterprise scenario

Basic raw material availability, support

services, sales possibility (within village/
outside village/ haat), skill.

Micro Enterprise Table :

Activities

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

Input for Micro Enterprise Table:

Number of entrepreneurs/ Group members:
Note down the number of entrepreneurs against each activity. Find out all the activities
undertaken commercially. Existing activities not listed in the micro enterprise can be noted
down in blank cells provided. Complete column 1 before moving to column 2.
Raw Materials :
Fill Y if raw material is available for the activity in the local area, otherwise fill N.







For livestock , availability of grazing land is considered raw material

For land based activities such as vegetable growing and horticulture, fertilizer,
pesticide and seeds are considered as raw material.
For production activities such as basket and soop making, materials like bamboo,
arhar sticks and plastic threads are considered as raw material.
For trading activities such as grocery , cosmetics, cloths/ garments, the product itself
is considered raw materials.
For trading activities such as grocery , cosmetics, cloth/garments, the product itself is
considered as raw material.
For service activities such as tailoring, carpentry and flour mill, tools and equipment
are considered raw materials.

108

Essential Support services:

Support services may be a prerequisite for some activities, not all . Services without which
an activity is not possible are called Essential Support Service .





For livestock, availability of veterinary service is an essential support service,

For land based activities, water is an essential support service.
Electricity and/ or diesel are essential support service for running a flour mill or a
pump set.

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.

Activity suggested for micro- enterprise:

Go through from column 1 to 5 to suggest micro enterprise on following basis.
 If all columns are Y for an activity then the activity should be selected for microenterprise.
Identifying new Activities :
After the micro enterprise table is completed for existing activities new activities that could be
taken up by members of SHGs can be identified.. By referring to activities undertaken in
nearby villages and haats, group members can be prompted to come up with their own
suggestions. These new activities can be suggested in the village on the basis of the
availability of raw material, support services, market and skill.
Identification of Best Practitioner:
Some criteria for identifying a successful member /entrepreneur as best practitioner. They
are:








High monthly sale (good profit margin)

Good growth rate
Good communication and public relations skills.
Problem solving approach
Superior technology used.
High awareness level of business/ market/ raw material sources.
Unique/ special marketing strategy
Good quality raw material used

109

Why a business plan necessary ?

Business plan helps implementer in assisting group members in following ways:





Planning for micro enterprise by individual

Credit Management
Preparation of application for a project loan
Proper facilitation and management by field worker by building linkages with market
and support agencies.

The implementing agency should identify different types of buyers listed below and
initiate business negotiations on behalf of the women :





Bulk buyers, local traders or middlemen

Existing marketing channel of government like vegetable federating , dairy ,
university farm, horticulture board etc.
Existing private marketing channel like cooperatives, Samities, NGOs / institutions.
By organizing Micro Enterprise Promotion Mela.

Linkages with support agencies:

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

Prioritization of Credit need:

Micro credit plans will be discussed in the SHGs with all the members and prioritize the
credit needs of the members before sending it to village organization., if the fund is to be
obtained from village organizations.
Priority will be given to the Self Help Group members having pressing needs for the loan in
the first round. Subsequently, the other members will also be covered. Entire prioritization
and selection process will be in a participatory manner, involving all the members.
Community Resource persons/ coordinators will make profiles of the members, their
economic condition, poverty level, existing livelihood activities, income, expenditure etc. This
will help in the prioritization process of giving loan. Village Organizations will also follow
similar norms, rules and principles in providing loan to the Self Help Groups and the
members.
Grading process of Self Help Groups will help in identification of Self Help Groups for
providing loan from Village Organizations. The Self Help Groups will have to manage their
activities as already mentioned in the earlier chapters. They will also maintain the accounts
and other records in proper form. Intensive training on book keeping, loan management and
preparation of micro credit plan will be organized in the field.
Separate manual will be prepared for flow and management of fund to the Self Help Groups
through the federations.

Eligibility of the SHGs for getting loans from the VOs:

Groups formed with the poor and the poorest of the poor only are eligible.
At least one year is to be completed from the date of the inception of the group.
Six months are to be completed as the member of the VO
Four meetings should have been conducted every month regularly.
Groups should have norms and adherence to the same is required.
Savings should be deposited and loans should be paid regularly.
Should encourage internal lending.
Should have Bank Account
Regular Book keeping is to be done.
Arears should not be here in the group.
Members should have understanding and be aware of the transactions of the group
Members should know the method of management of the group.
As already mentioned Micro Credit Plan will also be prepared in a participatory
manner in the group meetings., maintaining proper records in the minute books.
Income generating activities should be selected for the Micro Credit Plan on the basis
of the viability, technical and managerial skills of the members, profitability etc.
Existing income generating activities of the member should also be analyzed.

Sources of fund for micro credit will flow from different sources through the VO. A
separate manual will be prepared highlighting norms and procedures relating to
providing loan to the SHGs and its members. MOU will also be signed between
members and SHGs and VOs.

Various participatory meetings will be organized at SHG and VO levels for prioritizing
the needy members for loan. That is why the present status of the family of the
member applying for the loan, need for the loan, investment to be made, outcome
expected will have to be analysed and assessed.

VO will also select SHGs on the basis of their performance for providing the loan
including financial viability and commercial aspects.

111

Planning for Livelihood Activities:




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.

Preparation of a perspective plan through analysis of the resources of a block and

potential of each trade is imperative.




Each trade or business has got a saturation point in an area.

Saturation point depends upon the local resources and infrastructure facilities
required to facilitate the growth of the income generating activities.
Maximum absorption capacity of a block for an income generating activity should be
assessed while preparing the perspective plan.
Absorption capacity of a trade can be enhanced through development of natural
resources and required infrastructural facilities.
Preparation of cluster perspective plan under NRLM needs a holistic approach
through convergence of all im portant components for the growth of the selected
income generating activity.
A comprehensive activity specific and location specific cluster perspective plan may
be prepared in each block with adequate facilities for backward and forward linkages
in each cluster.
Growth of an income generating activity cannot be isolated from other rural
development programmes and sectoral programmes. An integrated approach in the
preparation of the perspective plan is very much essential.
Linkages among NRLM, other rural development programmes and sectoral
programmes are very much essential for sustainability of the activities.








Critical gap in infrastructure :











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

District level marketing centres

Vertical linkages
Horizantal linkages

Block level marketing centres

Vertical linkages
Horizantal linkages
G. P. Level Markets

Village level / G. P. Level Markets / haats for location specific products.

Marketing centres will have to be created with the following facilities.

Internet facilities.
Storage.
113

Facilities for grading, packaging, labeling etc.



It is advisable to have a separate marketing cell in the department for promotion of

marketing of the products produced by SHGs.

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.

Essential requirement for the growth of income generating activities in SHGs :




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.

Diversification and value addition of income generation activities.

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 .

Points to be followed while selecting Livelihood Activities:











Any income generating programme for members should be based on traditional

knowledge , skills and aspirations of the group members.
Traditional handloom and handicraft and existing artisan activities in a locality may be
more successful at the initial stage than taking up altogether new activities.
The groups may be encouraged to adhere to the quality norms and diversify their
product range.
The raw material required for the selected activity should be available locally or can
be transported to the work site at a low cost.
Those activities should be chosen which require modest investment to begin with.
Simple and labour saving technologies may be introduced to facilitate Swarozgaries
work. For instance, if an SHG is engaged in rope making activity, the arduous task of
beating the fibre manually may be substituted with some easy to use mechanical
devices.
Selected activities should be such that these can be pursued at home or at the
village. Moreover, existing workload and availability of time must be considered
carefully. There is no need to move into factory type production.
The selected activities should , as far as possible, be such which are of short
gestation period and can provide immediate and perennial income. However , when
114

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.

Exercises to be undertaken in this chapter will help in taking up the following

activities:









Identification of livelihood activities.

Formation of livelihood collectives/ producer groups after formation of village level
organizations for promotion of selected income generating activities.
Identification of critical gaps in livelihoods activities of SHGs and enhancement of
their profitability through convergence of support services.
Identification of critical gaps in infrastructure required for the growth of the livelihoods
activities taken up by SHGs.
Identification of stakeholders, support services providers for establishing proper
backward and forward linkages required for the livelihoods activities taken up by the
SHGs.
Identification of gap in skill development of the SHG members for productive
management of livelihoods activities and organizing skill and management
development training programmes for them.
Identification of youth from poor families for skill development and placement.
Identification and cataloguing of training institute , companies , agencies etc. for their
training and placement.

Livelihoods opportunities for Self Help Groups in agriculture and allied sectors of
Assam :
Seed Production :



Seed producer
Agricultural input dealer

Vegetable seed production:




Commercial nursery
Vegetable seed dealer

Floriculture, landscaping & Bee keeping:





Nursery/ seed farm

Cut flower grower
Florist shop
115

 Floriculture/landscaping and interspacing consultant/ contractor

 Agriculturist
 Bee colony producer
 Honey producer
 Honey Seller
Horticulture:








Nurseryman
Fruit grower
Vegetable grower
Seed producer
Vegetable /fruit shopkeeper
Cottage Scale fruit and vegetable grower
Mushroom grower

Plantation crop management:




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

Animal base agro industries:

Dairying:





Running a dairy farm

Manufacture of dairy products
Cattle feed and fodder production
Running a milk parlor

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 :



Running a poultry farm

Poultry waste utilization unit

Swine production :




Running a piggery farm

Pork product sale parlour
Contract supplying of pork products

Inland Fisheries:






Fishing in water bodies

Running a fish/prawn farm
Fish seed production
Fish marketing
Marketing of fishing nets/ traps

Fish seed production :




Preparation of fish products

Sale of fish products

Fish Seed Production :




Ornamental fish breeder

Ornamental fish shopkeeper

Medicinal Plant Industry:






Raising nursery and production ad sale of seeds and planting materials

Cultivation of medicinal and aromatic plants
Running a distillation unit for production of essential oils.
Collection and marketing of medicinal and aromatic plants

Value addition of food production :

Fruit and Vegetables Preservation, Papad and Badi Making, fruit drinks, soup concentrates,
potato chips, dal milling , dalia preparation, noodles preparation etc

117

7.2 ECONOMIC ACTIVITY SPECIFIC INFRASTRUCTURE / COMMON FACILITIES/

SUPPORT SERVICES TO BE CREATED AND RUN BY LIVELIHOOD COLLECTIVES
It is very much essential to have certain common facilities, infrastructure and support
services for the growth of livelihood activities to be taken up by the SHGs. During various
studies, it has been observed that many income generating activities could not survive due
to the lack of support services for raw materials, processing, marketing etc. All the support
services cannot be managed by SHGs on their own. Some such infrastructures, common
facilities and support services have already been created under SGSY to facilitate the
growth of income generating activities taken up by the SHGs. Following economic activity
specific mapping of common facilities / infrastructures / support services has been done to
promote livelihoods under NRLM. Some key activities which are usually taken up by SHGs
have been taken up to identify the required common facilities, support services etc. under
each of them for their promotion. These common facilities / support services will be
managed by the livelihood collectives for the benefit of all the SHGs and their members
taking up different livelihood activities.
Activity

Infrastructure/Common Facilities/Support Services

Storage and marketing of agriculture produces.
Common repairing centres for farm implements.
Common centres for supply of agriculture inputs.

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

Common oil extraction plants.

Eco hatcheries.
Pisciculture

Fish spawn marketing.

Collective fish marketing facilities
Pig breeding centres for quality piglets.

Pig breeding and rearing

Pig feed mixing plants.

Collective Meat processing and marketing centres
Model farm for breeding cross breed cows.
Mini milk chilling plants.
Milk processing centres.

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

Poultry brooding centres.

Poultry feed mixing centres.
Collective poultry marketing facilities.
Common reeling and spinning facilities.
Common dyeing facilities.
Common pre loom activities.
Computer design making centres.
Facilities for blending, twisting, texturing and calendaring.

Handloom and sericulture

Facilities for quality testing and packaging.
Yarn banks.
Marketing outlets.
Common Cocoon collection and marketing centres.
Grainage for seed production for promotion of eri, muga and
mulberry.

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

1. All assets created shall be the property of the Community Organisation.

2. Assets created/constructed as part of the Project activity should be valued at
the direct cost incurred in creating/constructing the asset.
3. Assets acquired under the Project would be valued at cost including all direct
costs (i.e. purchase price, transportation expenses, installation charges and
other expenses incurred for bringing the fixed asset in working condition),
incurred prior to its first use.
4. Assets, both acquired and constructed, should be valued at its full cost
inclusive of the Communitys contribution.
Staffs:

Accounting at Community level organisation will be done by the village
Community Mobilizer / bookkeepers at village level. Accountant will be
appointed for the accounting of Block Level federation.

Community Mobilizer / Bookkeeper will be selected from the village itself.
Effort should be made to identify local qualified women having qualification of
at least 10th Class for the Community Mobilizer.
Accounting at SHG Level:
The Accounting at SHG level shall be done to ensure that savings, Inter loaning among the
members, Utilisation of Funds received from the project against CIS and from other sources
are properly recorded and also to ensure that grant and loan received by the SHGs are
properly managed and utilized for the purpose it was intended.SHG shall maintain the
following books of Accounts1.Meeting Minutes Book

2.Savings Ledger

3.Loan Ledger

4.Cash Book

5.Individual Pass Book

6.Attendance Register

7.Receipt and Payments Vouchers

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.

A literate member of an existing group willing to work as book keeper.

Selection of an outsider willing to work as book keeper if there is no literate member

in a group.

The book keeper must have studied upto Class VIII.

Book keeper must be good at arithmetic.

Woman member shall be given preference.

The Book keeper should have respect for the women members of the group.

The book keeper shall posses patience and service mindedness.

123

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.

Delegated Financial Limits and Methods for Procurement at various Levels as

per Procurement Manual,MoRD,Govt. of India:
Key
Implementi
ng Units

Description of
Procurement

1. Members Livelihood plans of SHG

of Self Help members towards enhancing
Groups
individual livelihoods and
personal consumption under
the funds from Livelihood
Investment Component.

Value (Threshold) per Contract and Review

Method of Procurement
Procedure
Maximum livelihood plan amount of Only
INR 2,50,000 per individual SHG programmatic
member.
supervision and
peer
group
Given that it is a loan to be paid back social audit of
with interest, and the nature of private loan focused on
procurement, the procurement by repayment and
SHGs will be carried out with use for intended
prudence
using
commercial purposes.
practices
and
requires
no
procurement procedures.

Goods and Works

2.Communi
ty
Based
Organisatio
ns
i.e.
SHGs,
Village
Developme
net
Organisatio
ns,
Milk
Cooperative
s, Producer

Expenditure for common

goods and services as well
as sub-projects under the
Livelihood
Investment
Component.
Example,
building an agricultural link
road for enhanced livelihood
opportunity, constructing a
village meeting/ storage
space under value chain
development, investing in
water harvesting technique,

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

check dam building, buying

seeds for food security,
buying mobile phones for
agricultural
inputs
etc.
Additionally
office
management
related
procurement
of
goods,
equipment, works.

Value (Threshold) per Contract and Review

Method of Procurement
Procedure
0
Open
Tendering

< 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

The above are the maximum per

contract value that can be issued at
this level. If there is a need to procure
an item above this value, the process
will be handled at the next higher
level.

Documents that must be maintained for procurement at every level:

Quotations invited for the procurement.

Bills & Vouchers for all the purchase made.

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


Procurement Register has to be maintained at every level in which following details

must be given for every procurement :
1. Date of Approval from the EC.
2. Name and quantity of items.
3. Date of purchase.
4. Name of Suppliers/Service provider/Contractor.
5. Total Budgeted and approved cost and quantity.
6. Detail list of items purchased.
7. If Contract period of contract

Composition & Roles of Procurement Commitee a t Village Level/Block Level:

Block
Level Finance & Procurement 1. Members from Executive Committee
Sub Committee
Federation
of BLF will be members of Finance &
.
Procurement subcommittee.
2. Guide Block level Federation in their
procurement functions.
3. Ensure that the Financial &
procurement guidelines are complied
with,
4. Assist the VOs to negotiate for
highest quality and best prices.
5.Ensure that all financial management
and
procurement
decisions
are
documented in the Minutes Books of
BLF/VO, Finance and Procurement
sub-committee meetings
6. Guide BLF in its financial
management functions.
7. Ensure that the Financial and
accounting Guidelines framed are
complied with.
8. Facilitate Audit Process.
9. Conduct Periodic surprise cash
checks.
10. Recovery of loan from members.
11. Help in Bank Linkages of eligible
SHGs after completion of grading.
Village Level
Finance & Procurement 1. Members from Executive Committee
Federation
Sub Committee
are member of Finance & Procurement
Sub Committee.
2. Guide VO in their Procurement
functions.
3. Ensure that the Procurement
guidelines elaborated in the Community
Operational Manual are complied with;
4. Assist the VOs to negotiate for
highest quality and best Prices.
5.Ensure that all financial management
and
procurement
decisions
are
documented in the Minutes Books of
VO, Finance and Procurement
sub-committee meetings
127

6.Guide VO in its financial management

functions.
7. Ensure that the Financial and
accounting Guidelines framed are
complied with.
8. Facilitate Audit Process.
9. Conduct Periodic surprise cash
checks.
10. Recovery of loan from VLF/SHG
members.
11. Help in Bank Linkages of eligible
SHGs after completion of grading

Other Functions of Procurement Committee of Federations:

The Procurement Committee will have the following functions :

The Procurement Committee will ensure that all community procurement rules are
followed in procuring goods or services.

The Procurement Committee will scrutinize all the payment and recommend it for the
disbursement.

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 instalment will be made out by the Sub- Committee once the
triggers are achieved on the next instalment.

Help the Village Organization in appraising the CIF proposal.

Liaise with the social audit committee in giving clearance for the CIF project proposal.

128

CHAPTER 11
SOCIAL AUDIT

Activities to be covered under Social Audit process :

Raising awareness of rights, entitlements and obligations under the project.

Specifically , about the right to participate in a Social Audit.
Ensuring that all forms and documents are user friendly.
Ensuring all relevant information is accessible, displayed and read out.
Ensuring that the decision making process is transparent, participatory and as far as
possible , carried out in the presence of the affected persons.
Ensuring that all decisions, and their rationale are made as soon as they are made.
Frequent meeting/ interaction among implementing units, service providers,
federations and Self Help Groups.
Ensuring that the findings of social audits are immediately acted upon.
Also ensuring that these findings result in the required systematic changes.

Steps in Social Audit:

Identify the various stages of NRLM

Identification of the vulnerabilities in each stage: Vulnerabilities will be identified in
terms of what can go wrong, what can be corrected, what distortions can occure and
what biases crip in.(An analysis has been explained below)

Identify for each stage appropriate measures o be take to ensure that the identified
vulnerabilities are addressed through relevant Social Audit mechanism.

Identify the professionals and institutions that will be responsible for ensuring that the
Social Audit is organized properly.

Call a meeting of the group, federation and other stakeholders to discuss about the
principles and methods of Social Audit

Public hearing of affected persons

Follow- up actions on Social Audit.

Survey Method under Social Audit:

Different methods can be chosen for Social Audit so as to capture both quantitative and
qualitative information of the Self Help Group, Federation and other Stakeholders.
Different Methods:

Postal survey: This method of survey is relatively less expensive and found to be
more useful when same instrument can be sent to a large number of SHGs and
federations.

Group administered questionnaire:
Under this method, a sample of respondent , number of SHGs and Federations is
brought together and asked to respond to a structural sequence of questions. This
method is ideal for collecting information from the groups who join for village meetings
and it is relatively easy to assemble the group in a village setting. This method offers a
higher response rate and if the respondents are unclear about the meaning of a question
they could ask for clarifications.
129


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.

Personal interviews with the members of SHGs, federations and the

stakeholders:
Interviews are a far more personal form of research han questionnaires and is very
useful in finding qualitative remarks. This method helps to learn more about the situation
in detail, to discuss issues that would be difficult to address in group situations and to
reveal their personal perspectives on a particular topic

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

Steps to ensure transparency and Social Audit

Social Inclusion

Exclusion due to remote place, bad connectivity, poor

access etc.

Wide publicity and sensitization

Selection of Beneficiaries: Effective
targetting is a key way to ensure inclusion.
 Some approaches for effective targeting
used by various projects are :
Lack of access to mission units, Community Service -Spatial or geographical targeting
Providers
-Social group targeting



-Economic or occupation targeting

Physical segregation of primitive tribal groups and lack of
access to the services.
-A focus on women

Exclusion of disadvantaged, marginalized sections.

Exclusion of disabled and physically , mentally

challenged people of the poorest of the poor category

Social exclusion of women because of social and familial

proscription.

Social Exclusion due to domestic responsibilities

Exclusion due to migration






Targeting areas using human development

indicators.
Areas with poor infrastructure development
Areas prone to disasters.
Conflict- prone zones
Innovative Approaches to include Remote
areas.

Participatory identification of poor.




Landless Labourers.
Other occupational vulnerabilities

Focusing on Social Groups and Women:

 Dalits and Adivasis
 Women
 Socially invisible groups.
Building institutions of and for the poor:
 Self Help Groups

131

Homogeneous Groups

Wide publicity and sensitization on the

norms of institution building

Proper analysis of the people and the

community.
Rapport building with each and every
community and their leaders.
Involvement of formal and informal
leaders to motivate women to join the
Self Help Group movement.
Make them understand the importance
and benefits of joining the Self Help
Groups.
Involve the excluded women in finding
out and analyzing root causes of
community problems.
A close relationship with each family and
community by day to day contact.
Informal sharing of development concerns
and problems.
Proving useful to the community with
sound knowledge of the project
Building rapport with the community
Demonstration of concerns for the peoples
cause without bias of any kind to any
member in the community.
Dialogue with village formal leaders , local

Self exclusion for various reasons

Institution
Building

Exclusion from the groups because of rigidity in the

norms of the groups- particularly in case of vulnerable
sections.

Dropout due to domestic responsibility, social inhibition,

familial proscription.




Membership criteria may be tilted for dominant groups.

Norms and functioning of the institutions may not be

friendly to the poorest of the poor.





The influence of external forces can lead to exclusion of

the poorest of the poor from the groups.




Leadership styles may exclude poorest of the poor.





132

The project may focus on women but failed to address

gender


Financial
Inclusion

Membership norms, style of functioning not pro-poor

Constraints in accessing bank services- poor physical

access, affordability and social distance, including
discriminating attitude





Low quality of services and high transaction costs, in

accessing bank services in case of socially marginalized
section.

Procedure for opening accounts

complicated and time consuming.

and

loan

are


Formal credit institutions are viewed as inaccessible and
unfriendly by the poor.

Collateral and security requirements for loans.

Poor often do not have clear title to land.

133

officials, teachers, respected leaders in

different communities and caste groups.
Initiating development process with such
activities which can show quick results and
establish credibility.
Listening to everybody and then making
decision.
Interface between rural poor and the
bankers
Financial literacy/ councelling services on
savings/ credit
Engagement of bank mitras, business
facilitators, bank correspondents etc.
Hand holding support to the SHG for
financial inclusion
Frequent interaction between bank linkage
sub-committees
of
federations
with
bankers.
Frequent interaction between project units
and bank officials
Transparency in credit disburstment

Opening of accounts, harrowing experience

Inadequacy of loan, rigidity of terms and lack of
timeliness.
Livelihood
Development

Improper identification of activities




Choice and type of livelihoods activities alienate the poor

in the groups.





Improper preparation of micro credit plan.


Lack of participatory selection of activities and members
for loan

Lack of understanding the vulnerabilities of the poorest.

Inadequate access to land and other resources.

Poor infrastructure and marketing support

Skewed delivery of services.

134

Participatory identification of income

generating activities
Training on selection of activities for
livelihoods and selection of micro credit
plan.
Convergence of support services
Hand holding support for marketing
Field level technical and managerial
guidance
Frequent monitoring on availability of
support services for the growth of income
generating activities.

Lack of access to credit

Lack of skill and managerial capacity

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:













Poor availability of services.

Poor affordability of services.
Social access.
Poor targeting.
Poor quality of services
Poor infrastructure maintenance and supply.
Poor capacities of staff.
Poor governance and accountability.
Poor supervision and monitoring.
Complex and time consuming procedure.
Lack of mechanism for citizen feedback.
Discrimination.
Elite capture.

135
















The SMMU, DMMU and BMMUs including

community service providers adhere to the
values/ norms / principles.
Well-being of the people
Transparency
Participatory approach
Equity
Inclusiveness
Responsiveness
Concensus
Efficiency
Accountability
Quality of performance
Statutory and procedural standards
Timely service delivery
Timely redressal of grievances.

CHAPTER 12
MONITORING, EVALUATION (M&E) & LEARNING.

Approach of Monitoring & Evaluation:

MIS
System

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

11.1.NEED FOR A COMPREHENSIVE MONITORING, EVALUATION AND

LEARNING FRAMEWORK
NRLM is a process Intensive programme as it aims at eradicating rural poverty in its various
dimensions. For the programme to succeed it is important that it constantly reviews,
assesses and learns from the progress achieved, both in terms of qualitative and
quantitative targets. This requires putting in place a robust I.T. based Monitoring, Evaluation
and Learning (MEL) system, which facilitates learning and continuous improvement and
supports informed decision making at all levels of programme planning and implementation.
The Monitoring & Evaluation system will be developed to check as to how project activities
are progressing. It will be a process of systematic and purposeful observation. M & E will be
a mechanism to give feedback about the progress of the project to Government of India,
World Bank, Self Help Groups and Federations. Continuous and periodic review will be done
by the units at State, District and Block level of the implementation of the activities to ensure
that work schedules, targeted outputs and other required actions are proceeding according
to plan. Recording, collecting, processing and communicating information will be undertaken
to assist project management decision-making.
Monitoring will be carried out in terms of --1) Whether the various tasks are carried out according to schedule.
2) Whether project results are linked to lead to realization of project objectives?
3) Whether project objectives/ targets / execution needs adjustments?
Various Mechanisms of Monitoring under NRLM
I. Self-monitoring systems at the community level
(a) Self-monitoring of SHGs/primary level federations and other organizations of the
poor;
(b) Training on frontline staff to enable S.H.G.s and their federations to monitor their
own work.
II.Management Information System (MIS) based on input -output monitoring.
a) Under ASRLMS, the first step will be the development of comprehensive web based
Management Information System (MIS) to support informed decision making and real
time input output monitoring.
b) The information in the MIS would be entered at Block, District and State Levels and
also be monitored at each level.
c) The entry of data pertaining to other agencies involved in the process of NRLM like
RSETI, Banks, Skill development and placement project implementing agencies etc.
will also be ensured by the respective states.
d) The GOI will developed and information technology framework for the MIS under
NRLM.
(I)

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.

11.2.MONITORING PLAN FOR SHGS AND VILLAGE ORGANIZATIONS

Self monitoring system:
SHGs and federations will develop a self monitoring system with the help of the following
indicators:

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 :







Reduction in womens burdens.

Enhanced nutritional well- being of children and adolescent girls.
100 % immunization of children and pregnant women.
Higher enrolment of girls at school.
Involvement in decision making in family.
Changes in gender roles in family.

Long Term :





Reduction in maternal and infant mortality.

Higher age of marriage for girls
Acceptance of small family norms and child spacing
Perceptible changes in gender biased socialization practices, such as improvement
in discriminatory food intakes, freedom of movement of girls, participation of boys in
household work.

Quantitative Indicators :








Number of gender sensitization training programmes conducted.

Number and proportion of non- conventional economic activities taken up.
Range of economic activities promoted.
Number of loans procured.
Amount of savings accrued
Average increase in womens incomes
Number of women beneficiaries.

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













Nature of intervention: The relationship between the community and groups or

other development workers- whether it is based on trust and mutual understanding or
suspicion and intimidation.
Relationship with other groups : Process of discussion , level of intergroup contact
, joint action etc.
Group sustainability : Number of years that the group is functioning , number of
times the revolving fund has been recouped , number of members who have dropped
out with reasons, number of new members added as replacements, diversification of
activities etc. will give some indication of group sustainability.
Economic Autonomy
Opportunities given and handled.
Increase in decision-making capacities.
Attitudinal changes.
Role perception (self and perception of the community)
Increase in quality of living.
Increase in earning and purchasing power.

Indicators relating to Self generated thrift and credit:

Regularity of thrift form the members.
Rotation of atleast 90% of the thrift among the members by way of loans. With
amounts given to more number of members at a time.
 Utilization of atleast 70% of the loans for income generation, agricultural purposes,
asset building, and loan repayment.
 More group loans for group activity.
 Prompt repayment with interest.
 Regular meetings of the group members for (a) Feedback on utilization of amount
(b) Sharing on experience with amount utilized (c) Exploring various incomegeneration and enterprise options .
 Presence of strong committee within the group to prioritise needs.
 Strong peer pressure for proper utilization of amounts. Presence and regular update
of related books namely.
 Thrift Register
 Loan register
 Minutes book
 Pass book
Indicators relating to Livelihood Activities :


















Number of Programmes taken up

Range of activities taken up
Group vs individual activities.
Marketability of the produce/ product within the project area.
Direct bearing of the activity on the income levels of the people concerned.
Number of skill trainings imparted.
Number of skilled trainees taking up the activity.
Network linkages (with banks, administrative etc) built up for initiating activity.
Activity vs development of area , change/ improvement in peopls practices etc.
Number of activities promoting (a) indigenous technology (b) Environmental
conservation and (c) Programmes of national importance (sericulture, NPM, nonconventional energy)
Number of assets of peoples utility built up in course of activity.
Number of people benefiting form sub- components of activity in quantifiable terms ,
like wages etc.
Replication of these activities within and outside the area.
Number of Grass root level extension workers developed for person- to person
transfer of skills.
141






Number of people directly benefiting through imparting the training as professionals.

Number of second-line trainings taken place (through grass root level extension
workers)
Range of marketing arrangements option build up within outside the area.
Sharing of produce amongst the people.

Monitoring and Evaluating the broad areas:

 Internal Cohesion
 Group solidarity
 Active and critical participation
 Reduced dependence/ increased confidence
 Self Management capability.
 Democratization of power , collective responsibility.
 Involvement in regular discussion with other similar groups and institutions.
 Involvement in creation of similar groups and
 Ability to deal with government officials.
Characteristics of a good Group :
The Group members should have a feeling of self reliance

- A Self Help Group

The Group should have clearly defined goals

- A Group with goals

The members should have relations of Trust, cooperation

& love among themselves

- An Affinity Group

All members of the Group should be poor having similar

& social & economic problems/ background

- A Homogeneous Group

All members of the Group should run it unitedly

- A Democratic Group

All the Group members should possess leadership qualities - A Leadership Group

The Group should follow good rules and regulations

- A Disciplined Group

The transactions of the Group should be transparent

- A Transparent Group

The living standards of Group members should gradually

Improve

- A Progressive Group

The Group members should acquire social consciousness - A Conscious Group

142

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.

Additional criteria for Assessing performance of Self Help Groups:

Criteria for Assessing Changes in standards of SHGs
Productivity
1. Group members keenness , leadership and sense of responsibility
2. Group capacity and level of confidence
3. Status of growth in financial capital
4. External linkages- vertical and horizontal
5. Technologies and improvement

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

18.Power within and power with

19.Access to information and responsive governance
20Transparent decision making from above
Total Score 100

Qualitative Monitoring of Federations/ VOs:

Equality among members:




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.

Member savings must be protected:





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.

Credit Services provided to members must be sustainable:








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.

Representatives of member- SHGs must be financially literate to be in control of the

Federation:




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.

Federation must itself be sustainable, democratic and accountable:

Resources: Organizational resources must be protected and developed.

Equality : There should be equality among members.
Viability: SHGs should be financially viable.

Organizational resources must be protected and developed:

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.

The Federation should be financially viable:

145

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)

Analysis and prevention

Grievance Redress Mechanism under NRLM will follow up bottom up approach

Grievance Redress Mechanism at BMMU level:

Every BMMU shall make arrangements for receiving Grievances brought personally by the
complainant or received by post. The BMMU shall identify the place, time and a personal for
receiving Grievances. Arrangement in the form of an internal desk/unit/section/division in the
BMMU office will be made. A person would be responsible for receiving the Grievances,
issuing the acknowledgement receipt and maintain record in the format given bellow. In case
of online system the acknowledgement will be sent automatically.
To ensure that all relevant particulars are available for further actions to be taken, full details
must be recorded at the time of receiving a Grievance or complaint as shown below and
additional column will be provided for tracking date of redress.
# Date
of
Rec
eipt

1 2

Particulars of the stake holder

Na
me

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

Communication to the complainant:

The BMMU at the time acknowledgment should provide the following information to the
complainant.
a. Grievance number to facilitate monitoring and reminders by complainants
b. Expected time of redress
c. If not addressed within expected time, action to be taken by complainant
If the grievance is not redressed within the expected time, the complainant should be
provided with the following information by the person responsible for receiving the
manual/postal grievances:
a. Information on reasons for delay
b. Updated expected time of redress
c. If not addressed within expected time, action to be taken by complainant.
At the time of final redress, the complainant should be provided with the following
information by the office responsible for redress of the grievances:
d. Action taken for redress
e. If not satisfied with the redress action, avenues for pursuing the matter further.
The information should be given in the same letter/order through which the final decision on
redress is conveyed to the complainant.
A complainant can also directly lodge a grievance at DMMU or SMMU level.
147

Criteria for classification of grievances:

Different types of grievances need different responses. Therefore the grievance must be
categorized to facilitate action appropriate to the type grievance. BMMU will categorize the
grievances in the following format.
#

Criteria

Grievance Category

Grievance redress committee at BMMU level:

A committee will be constituted with the following members at BMMU level to redress
grievances that can be done at that level.
1.
2.
3.
4.

Block Development Officer Chairperson

A Representative from DMMU-Member
Block Mission Manager-Member Secretary
Representative of concern Panchayat (as per the need to redress the Grievance)special invitee
5. Branch Manager of the Concern Bank Branch Special Invitee
6. Technical persons (in case of grievances having technical implication)-Special Invitee

Level for redress:

If the grievances cannot be redressed at BMMU level it will be redressed at DMMU level. In
the same manner if the grievances cannot be redressed at DMMU level it will be redressed
at SMMU level.

Grievance redress Committee at DMMU level:

A grievances Redress committee will be set up at DMMU level with the following members to
redress grievances coming to DMMU level.
1. Project Director DRDA - Chairman
2. District Mission manager- Member Secretary
3. A Representative of the Deputy commission preferably additional deputy
commissioner development - member
4. Representative of the concern Panchayat -Special invitee
5. Representative of concern Bank branches-special invitee
6. A technical expert Special Invitee
The grievance at DMMU level will redress grievances received at DMMUs office within the
time norms for redress. It will be the responsibility of the District Mission manager to
convene the committee to redress the grievance in time. Invitees from panchayat banks and
technical experts will help to redress grievances of different nature. NRLM being a multi
sectoral approach the representatives of the deputy commissioners will help in maintaining.

148

Coordination among different departments, agencies, institutions, financial institutions, to

redress the grievances belongings to different categories.

Grievance redress cell at SMMU level:

The grievances which cannot be redressed at DMMU level will be redressed at SMMU level.
A grievance redress cell will be set up SMMU level under a responsible officer to keep track
of the grievances and their timely redress.

Grievance Redress Committee at SMMU level.

A grievance redress committee will be set up at SMMU level following members to
redress grievances coming to SMMU level
1. SMD- Chairperson
2. Assistant/deputy mission director-Member secretary
3. Representatives of concern bank special invitee
4. Representatives of concerned line departments/agencies -special invitee
5. Technical experts as per requirement Special Invitee
Following table will be prepared to redress grievances at different levels along with time
line
#

Type of Grievance

Time line
redress
BMMU

for Time line

at redress
DMMU

for Time line

at redress
SMMU

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.

Analysis and prevention:

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

Formats for root cause analyses of grievance areas:

#

Date
and Grievance
description
prone

Root cause Action

Planned
Action
identified
required to date
and taken
149

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.

Design of the Citizen Charter and steps to be followed in its preparation:

1. Identification of services delivered by SMMU, DMMUs and BMMUs
2. Identify indicators to measure services Standards in the services delivered by
SMMU, DMMUs and BMMUs
3. Consultation with stake holders on service standards on the basis of their reasonable
expectations.
4. Preparation of the Citizen Charter after consultation with stake holders
5. Ensure implementation of the Charter by SMMU, DMMUs and BMMUs
Formats to be used in the preparation of the Citizens Charter by SMMU, DMMUs and
BMMUs:
Sl
No.

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%

The exercise will be conducted by specially designated teams selected by SMMU.

CHAPTER 15
PERFORMANCE MANAGEMENT SYSTEM

152

Objectives of performance management system

Performance management is an integral part of comprehensive human resource
management strategy. Its objective is to maximize staff performance and potential with a
view to attaining organisational goals and enhancing overall efficiency and productivity. A
performance management system aims:
To enhance performance of individuals/Teams/ and thus help achieve project
objectives. Projects formulate strategies and objectives to support their vision,
mission and values. To achieve these broad objectives, the teams have to turn them
into specific objectives and targets for the districts, and subsequently individual job
objectives and targets for implementation. Performance management acts as a tool
to define and focus on critical elements on which the overall performance of the
organization depends.

To enhance self esteem of the staff by rewarding, the staff performance management
system provides a mechanism to monitor and evaluate stuff/ team performance.
Performance objectives are set at the beginning of the performance management
cycle through open discussion between the project management and the teams.
Progress is monitored regularly and feedback from stuff is collated to help clarify
objectives and output expectation; and to enhance performance. Teams which
perform are then recognized and rewarded for their achievements. Thus the system
should also be seen as a tool for enhancing the self esteem of the performing
employee and to bring in a culture of healthy competition to perform.

To identify gaps in performance and pave way for future capacity building. The
performance management system serves as a multi-purpose management tool. It
provides valuable information to help identify gapes in performance and hence
training needs of staff teams to develop their potential furthers.
Guiding principles of performance management system

As far as possible, the system should be based on clear and Key Performance Areas
(KPA), each of which will be defined with Key Performance Indicators (KPI). These
should be linked with the action plan for the State/District/Block level.

The method of verification of Key Performance Areas (KPA) should be developed to
make the process transparent.

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

5. Project ManagerFinancial Inclusion.

6. Project ManagerSM,IB & CB.
7. Project Manager--- HR, M&E
8. Project Manager---Livelihoods, Skill Development & Placement
9. Chief Finance Officer
10. Finance Officer
11. Accounts Officer.
12. Accountant Assistant
13. MIS Manager.
14. Data Entry Operator
Additional Positions created during the Project would be added to the respective teams.
Define performance year

The period of January 1 to December 31 of a calendar year is defined as the
performance year. Since the financial year is from April 1 to march 31, the lead-time
between January 1 to March 31 can be the period when all appraisals are completed
in the organisation and necessary advice be passed on to the finance section for
award of performances.
Identifying key persons for coordinating performance management

A key person is needed to anchor the system at the state as well as the district level.
The SPM, PM and the DPM would be the key persons responsible for managing the
performance management system. These persons would be responsible for collating
all the necessary data for performance appraisal.
Actionalizing Performance Management System
The table below identifies steps through which the Performance Management System would
be implemented.
SL.
No.
1.

Component
Identification
KPIs
(for
Assessment
Period)

Process

Key Responsibility

of Step1: Finalization of Project Action Plan

SPM
the Step 2: Finalizing KPIs at all levels through
workshops (quantitative & qualitative, individual &
team performance)
Step 3: Official communication from final KPIs
across levels
PM-CB & Training

2.

Performance
Assessment.

Step 1: Consolidation of quantitative indicators SPM & DPMs (for dist

for each from MIS data
level)

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

Step 2: Communicating CB needs to the SPM PM-CB&Training.

for initiating CB initiatives

4.

Rewarding

Step 1: Categorizing staff based on performance SPM

for monetary rewards
Step 2: Finalizing non monetary rewards

SPM

Step 3: Organizing Performance Rewards SPM

Function for recognizing and awarding the
performers
Component 1: Identification of Key Performance Indicators
As indicated earlier, the Key Result Areas and Key Performance Indicators would flow from
the Overall Project Objectives and Annual Plan for the year. The reference design of KPIs
for staff at BMMU, DMMU and SMMU are provided in Annexures. These KPIs will vary from
time to time as per progress in the project and changing role of the project staff. Hence the
annual KPIs will finally be prepared in the beginning of the each project year. The SPM, PMCB & Training and DPC will be responsible for preparing the KPIs in consultation with team
and State Mission Director.
Component 2: Performance Assessment
Most of the indicators can be measured by the data provided by the MIS system of the
project. It would be the responsibility of the SPM, PM- HR,M&E & DFE-HR,M&E to obtain
the necessary data needed for performance assessment from the MIS system.
It would be the responsibility of the SPM, PM- HR, M&E & DFE-HR, M&E to compile data
from any other source in case required. The Field Team assessment scores would be
compiled and shared with them by the concerned DPM, DFE-HR, M&E along with one
representative from the SMMU.
Component 3: Identification of Capacity Building Needs
The appraising team would identify areas of growth and capacity building for staff based on
the performance and data from one to one interaction. Areas in which performance is below
60% could be explored for further capacity building. This could be done at the time of the
Personal Interview with each staff for reviewing Performance Appraisal Scores.
These would be consolidated by PM- HR, M&E (for all DMMU staff).

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

Defining each score to assist panellists and standardize across districts.

Assessment Team and the Procedure

A team of 3-4 persons comprising SPM, DPM, PM, Block Project Manager (two
leaders of well performing community institutions may be included as part of the
assessment team in later years) would be formed for assessment.

This Assessment team should comprise of staff from another Project district/s (than
the district for which assessment is being made).The should visit a sample of 5% (or
at least 10 institutions SHGs/Federations/Producer Groups) of the institutions
promoted.

Each team member should give her/his own score on the sheet. Once the field visits
are completed, a consolidated score from all the team members should be
developed, and scores awarded to the Team.

The scores of quantitative as well as qualitative assessment would be consolidated
to arrive at one final score for the individual/team. Based on this score the
performance would be rewarded.
Rewarding Performance
A combination of monetary and non monetary incentive system based on performance
would be awarded. The details are provided bellow.
Monetary Incentive
The following monetary incentives as Annual Performance Pay will be provided.
SI .no
1
2
3
4

Performance Score
Those scoring overall
Grade A
Those scoring overall
Grade B
Those scoring overall
Grade C
Those scoring overall
Grade D

Score According To Grade

Target achievement 100% or
above
Target achievement 91-99%
Target achievement 75-90%
Less than 75%

Incentive
5% of their total
remuneration
3% of their total
remuneration
2% of their total
remuneration
No
performance
incentive

Non Monetary Incentives

Recognition: Three best performing Block Team Shield across the project will be
instituted and awarded. The basis for selection would be the overall performance
score.(in case of a tie, tie the SMMU would make the judgement).

Similarly a best performing DMMU Shield would also be instituted. These awards will
be presented to the best teams in an event organized for the entire project.

The best performing BMMU/DMMU/SMMU team members can be nominated and
sponsored to attend short term courses such as MDP(management development
programmes) at institutions such as IIMs, IRMA, XLRI etc. The decisions on can be
taken by the SMD.

In case of a member is awarded an overall A Grade for two consecutive years,
he/she (or the entire team) could be sent for an exposure visit outside the state. The
decision on this can be taken by the SMD.

Further incentives will be designed by SMD as and when required.

KEY PERFORMANCE INDICATORS FOR NRLM STAFF

157

Score
100% or >100%

Grade
A

Score
75%-90%

Grade
C

91%-99%

<75%

158