Diary of a Rural Manager!

Market and State are principal agent of development. The welfare prone Indian state is now promoting the digital financial inclusion and cashlite economy.The demonetization narrative and data has been diverted towards digital and cashlite economy. The state appears to have vision of going cashless, notably like South Korea, Denmark, Sweden, and Norway. The cashless economy is an utopia but cashlite economy will happen till 2050. The digital ecosystem in India is demonstrated in the diagram below (Thanks Microsave) : The issues in move towards cash-lite economy has been discussed in detail here -: 1. Policy Level: RBI has drafted policies (in its Payment System Draft Vision Document ) to accelerate the shift towards electronic transactions. This policy will require an integration with National e Governance and Digital India plan for having a significant outreach and affect. The 'Committee on Digital Payments', headed by Ratan P Watal deployed by Ministry of Finance ...

Microfinance is financial services for poor and low-income communities, people who have been excluded from the mainstream financial system. Yet, there are the diverse opinions people have about Microfinance. I have encountered few in last 5-6 years and presenting them in summary format. 1. The MBA: "Truly amazing business model & poverty reduction tool." 2. The arrogant: “Unsustainable and too risky! Does it actually work?” 3. The over-informed: “Yes, I know about it, you give money to poor. Social enterprise!” 4. The ill-informed: “Thugs lending money to poor at high interest rates and brutal recovery techniques.” 5. The devout fan: "This is the future, only we need investment and scaling and may be P2P." Microfinance is not panacea from all troubles, this also means that not any poor person can obtain the loan. I can vouch with my experience that only micro loans can't solve poverty. There is enough evidence to support my claim :  Microloans Do...

ACCESS has hosted the Inclusive Finance India Summit from December 8th to 9th, 2015 at in New Delhi, India. The summit has gained recognition and the Inclusive Finance India Report has been quoted extensively in the Malegam Committee , and working report for the Microfinance Bill. The Summit has facilitated discourse on issues like-policy environment, data analytics in financial inclusion, mobile wallets, BC model, customer protection, impact of JAM, and innovations in the sector. I attended the summit as the delegate of ACCESS team. The Summit began with release of the Sector report 2015 was followed by several sessions on microfinance and financial inclusion in the country. The buzz of the sessions were around Mudra bank , Payment banks, cash less economy and Small Finance Banks. Eight out of 10 Small Finance Banks which have been given in-principle nod by RBI are microfinance institution (MFIs).  Sector experts are hopeful that Small Finance Banks  fill the "missing midd...