Vodafone M-Pesa partners with Government to empower SHGs in Bengal
Currently, different Nationalised Banks give small loans to women in poor families to start different entrepreneurial projects.
Loans are given to the Self Help Group (SHG) and the SHG repay the loans to the banks in small amounts every month. Since the SHG is based at deep rural areas and the distance from their location to bank is very high, it is often found that SHG face a huge task in accessing the bank for repaying the EMIs. Time taken for transportation, standing time in the bank, possible loss of income of one day – these are the main challenges for which the SHG want the solution.
With M-Pesa account, the SHG can deposit the repayment amounts to their loan account instantly. Instead of travelling far away, now the SHG can open a M-Pesa account at the M-Pesa agents nearby their locations, load E-money to their M-Pesa account and can instantly send the E-money to their loan account of the bank.Vodafone M-Pesa facilitates instant, safe and secure cash transaction for the SHG, thereby saving huge transportation cost and time. Regular deposit into loan account at regular intervals using M-Pesa will further boost credit ratings. The partnership will boost the banking system in Bengal and facilitate higher loan disbursement for the poor.
Vodafone has entered into a six months pilot project with WBSRLM in nine blocks of Uttar Dinajpur District in West Bengal namely Itahar, Kaliyagunge, Hemtabad, Raigunge, Islampur, Chopra, Karandighi, Goalpokhore I and Goalpokhore II. The universe of the SHG in the district is approximately 15,600 and so far more than 600 SHGs have already enrolled themselves as M-Pesa Customers and have experienced the convenience of M-Pesa.
Speaking about the association Suresh Sethi, Business Head M-Pesa, Vodafone India said, “M-Pesa is an innovative financial service from Vodafone that brings the bank to the mobile and addresses the issue of access to financial services. We are delighted to extend M-Pesa offering to WBSRLM. We are confident that this association will go a long way in simplifying the payments process for WBSRLM from the Self Help Groups. Currently, we are running a pilot in nine blocks of Uttar Dinajpur District in West Bengal. We are hoping to extend the benefit of using M-Pesa (Mobile Wallets) and further enhance the capabilities of the VO/SHGs.”
Choten D Lama IAS, State Mission Director and CEO of West Bengal State Rural Livelihoods Mission stated that she was delighted with the partnership.
According to her, there are a lot of hidden costs when SHG women transact with banks.
Models like M-Pesa allow for significant reduction of these costs. This model has been successfully implemented in other nations and other states in India and is “an idea whose time has come”.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
