State Report: Uttar Pradeshcomtax.up.nic.in/Comtaxtrg/PDF/Economic Status UP/UP...Uttar Pradesh State Report Page 5 of 38 Scheduled Commercial Banks (including RRBs) operating in the

Uttar Pradesh State Report

Page 1 of 38


On

Conducting an Assessment Study of design and

delivery of Financial Literacy among poor

Submitted to

by

BASICS Ltd., Ascent Tower, Opp. Karvy Consultancy,

Banjara Hills, Road No-10, Hyderabad 500 034,

Andhra Pradesh, India

June, 2010

BASIX

Equity for Equity


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Table of Contents

1.0 State Profile ......................................................................................................................................... 4

Area-wise Branch Network (All Banks) ........................................................................................... 5

Deposits/Advances/CD Ratio (All Banks) ....................................................................................... 5

Financial Inclusion .................................................................................................................................... 5

2.0 Primary Survey ........................................................................................................................................ 7

2.1 Respondents Profile: ................................................................................................................... 8

2.2 Details of FL Programme ........................................................................................................... 8

3.0 Tools used ............................................................................................................................................ 9

4.0 Duration of Programme ................................................................................................................. 9

5.0 Participant’s satisfaction and urge for repetition .............................................................. 10

6.0 General Behaviour-Pattern ......................................................................................................... 11

7.0 Saving .................................................................................................................................................. 13

7.1 Saving Products ........................................................................................................................... 14

7.2 Awareness level on Institutions ............................................................................................ 14

7.3 Content covered in FLP ............................................................................................................ 15

7.4 Content Covered on Saving in FLP ....................................................................................... 15

7.5 Impact ............................................................................................................................................. 16

8.0 Credit ................................................................................................................................................... 17

8.1 Awareness on Interest Rate of different Institutions ................................................... 18

8.2 Awareness on procedure and documentation ................................................................ 18

8.3 Impact ............................................................................................................................................. 18

9.0 Insurance ............................................................................................................................................ 19

9.1 Insurance Products .................................................................................................................... 19

10.0 Post FLP empowerment of Female participants ............................................................ 19

10.1 Topics suggested for improved training ....................................................................... 20

11.0 Summary ............................................................................................................................................ 21

12.0 Study Area .......................................................................................................................................... 21

13.0 Formal programmes .................................................................................................................. 22

13.1 Financial Literacy for Poor Women ................................................................................ 22

13.2 NABARD Financial Literacy Programme ....................................................................... 24

14.0 Informal programmes ................................................................................................................... 26

Summary and Way Forward .................................................................................................................... 27

Summary ..................................................................................................................................................... 27

SWOT for FL Programme ..................................................................................................................... 28

Future Strategies ..................................................................................................................................... 29

General recommendations .................................................................................................................. 29

Annexure I: Profile of Respondents ................................................................................................ 31

Annexure II: Tools used in the Financial Literacy Programmes ........................................... 32

Annexure III: Participants responses on a repeat FLP ........................................................... 33

Annexure IV: Responses on Satisfaction level ........................................................................... 34

Annexure V: Awareness about financial institutions ................................................................ 35

Annexure VI: Responses on awareness about Interest Rates ..................................................... 36

Annexure VII: Awareness on Insurance Products ........................................................................... 37

Annexure VIII: Responses on improvement in decision making status ................................. 38


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List of Tables Table 1: Demographic, Socio-economic and Health profile of Uttar Pradesh State as compared to India figures ........................................................................................................................... 4 Table 2: Bank branch network in Uttar Pradesh ............................................................................... 5 Table 3: Number of SHGs provided with bank loans ....................................................................... 6 Table 4: Financial Literacy Programmes conducted ........................................................................ 8 Table 5: Opinion on Duration .................................................................................................................. 10 Table 6: Duration Suggested for FLP .................................................................................................... 10 Table 7: Behavioural trend in deficit management ........................................................................ 11 Table 8: Trend on Surplus Utilization .................................................................................................. 12 Table 9: Track of Income & Expenditure ............................................................................................ 13 Table 10: Saving Pattern ........................................................................................................................... 14 Table 11: Type of Institutes: .................................................................................................................... 15 Table 12: Purpose of Saving ..................................................................................................................... 15 Table 13: Impact of FLP-Saving .............................................................................................................. 16 Table 14: Different Loan product covered in FLP ........................................................................... 18 Table 15: Empowered after FLP ............................................................................................................. 19 Table 16: Topics suggested to be covered in FLP ............................................................................ 20 Table 17: Area-wise FL programmes and resource agencies ..................................................... 21 Table 18: Teaching aids in formal FL programme by ISMW ....................................................... 23


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State Report: Uttar Pradesh

1.0 State Profile

The state of Uttar Pradesh (UP) has a population of 166.20 million. The decadal growth rate

of the state population is 37.80% as against 21.54% for the country and the population of the

state continues to grow at a much faster rate than the national rate. The Total Fertility Rate of

the State is 3.8. The Infant Mortality Rate is 67 and Maternal Mortality Ratio is 440 (SRS

2004-2006) which are higher than the National average. The Sex Ratio in the State is 898 (as

compared to 933 for the country). Comparative figures of major health and demographic

indicators are as follows:

Table 1: Demographic, Socio-economic and Health profile of Uttar Pradesh State as compared to India

figures1

S. No. Item Uttar Pradesh India

1 Total population (Census 2001) (in million) 166.20 1028.61

2 Decadal Growth (Census 2001) (%) 37.80 21.54

3 Crude Birth Rate (SRS 2008) 29.1 22.8

4 Crude Death Rate (SRS 2008) 8.4 7.4

5 Total Fertility Rate (SRS 2008) 3.8 2.6

6 Infant Mortality Rate (SRS 2008) 67 53

7 Maternal Mortality Ratio (SRS 2004 - 2006) 440 254

8 Sex Ratio (Census 2001) 898 933

9 Population below Poverty line (%) 31.15 26.10

10 Schedule Caste population (in million) 35.15 166.64

11 Schedule Tribe population (in million) 0.11 84.33

12 Female Literacy Rate (Census 2001) (%) 42.2 53.7

Covering an area of 240,928 square kms, UP is one of the largest states of India.

Administratively divided into 71 districts and 820 blocks, the state has 107,452 villages.

Ranking first in the country in terms of population, the state is densely populated. As

against the national average of 324 persons/sq. km., the state has a population density of

689 persons/sq. km. The other elements of the state demographic profile include its

predominantly rural character, high level of poverty and low percentage of working

population. About 80% of the population lives in rural areas and more than 30% of the

population still lives below poverty line2.

The state economy is predominantly agrarian and more than 70% of the work force is

engaged in agriculture and allied activities. The importance of agriculture in the state

economy can be gauged from the fact that share of agriculture in State Domestic Product is

35% as against its 22% share in the National GDP.

The State has a wide network of banks. It is being served by 39 Commercial Banks, 12

Regional Rural Banks (RRBs) and 2 Cooperative Banks. Out of total 9,632 branches of all

1 http://mohfw.nic.in/NRHM/State%20Files/up.htm (as extracted on 5th June 2010)

2 http://www.slbcup.com/pages/bankatglance.html (as extracted on 5th June 2010)

http://mohfw.nic.in/NRHM/State%20Files/up.htm

http://www.slbcup.com/pages/bankatglance.html


Page 5 of 38

Scheduled Commercial Banks (including RRBs) operating in the state, 4,972 branches are

operating in the rural areas and 1,715 in semi-urban areas.

In addition to this, 1,658 branches of District/Central Cooperative and Land Development

Banks are also serving in the state. Apart from this, 70 Urban Cooperative Banks are also

functioning through their 184 branches in the state.

Area-wise Branch Network (All Banks) Table 2: Bank branch network in Uttar Pradesh

Category March 07 March 08 March 09

Rural 6,049 6,098 6,210

Semi-Urban 1,828 1,946 2,078

Urban / Metro 2,460 2,720 3,002

Total 10,337 10,764 11,290

There were 36 RRBs in the state but now after amalgamation process the number has

reduced to 12. These RRBs are sponsored by 10 banks and catering to the needs of people

of 71 districts through their 2,961 branches.

Deposits/Advances/CD Ratio (All Banks)

Total deposits with the banking sector in the state increased by 21.56% in 2008-09 over

2007-08. At the end of March 2009, the total deposits stood at Rs.2, 72, 736.94 crore.

Commercial Banks which have the maximum share (86.46%) in total deposits registered a

growth of 21.90%. Deposits of RRBs and Cooperative Banks registered a growth of 18.60%

and 21.31% respectively over the level as at March 2008.

Similarly, during the same period, the total advances with the banking sector increased by

13.51%. At the end of March 2009, the total outstanding advances stood at Rs.1,27,639.76

crore. The growth registered by Commercial Banks was 14.44%, while outstanding loans of

RRBs registered a growth of 18.58%. Cooperative Banks have registered a negative growth

of 2.45% compared to their levels at March 2008. The share of Commercial Banks in total

advances was 83.97% whereas the share of RRBs and Cooperative Banks was 9.57% and

6.45% respectively.

The CD Ratio of the State has witnessed a quantum jump at the end of 2007, however it has

slide down in March 2009.

Financial Inclusion

As against the total population of 166 million, the adult population is 82.23 million and the

total number of bank accounts is 47.13 million. The total number of accounts includes 45.80


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million savings accounts. This suggests financial inclusion of 55.7% adult population. The

number of accounts per 100 of population is 28 and per hundred of adult population is 57 as

against the national average of 31 and 59 respectively3.

SHGs provided with bank loans over the years are as under4:

Table 3: Number of SHGs provided with bank loans

S. No. Year No. of SHG’s

1. 2003-04 25,214

2. 2004-05 40,438

3. 2005-06 42,263

4. 2007-08 23,094

5. 2008-09 40,476

3 Indian Institute of Banking and Finance (2006)

4 www.indiastat.com

http://www.indiastat.com/


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Part I

Primary Survey under the FL Study in Uttar Pradesh

2.0 Primary Survey

The demographic summery of the sample under the primary survey of Financial Literacy

Programmes (FLPs) in use is presented hereunder.

Profile of Respondents

33%

67%

6%

94%

38%

2%

31% 29%

9%4% 1%

Category

Perc

en

tag

e

Male Female Age > 60 Age < 60 BC ST

SC General Minority PWD PWHA

Profile Repondents

64%

36%

25% 22%

Category

Perc

en

tag

e

Income<=40,000pa Income>40,000pa

Male - Head of Family Female Head of Family


Page 8 of 38

2.1 Respondents Profile:

The total respondents surveyed were 1,040 surveyed from 9 districts of Uttar Pradesh namely

Jaunpur, Mirzapur, Agra, Baharaich, Jhansi, Meerut, Rae Barely, Varnasi and Lucknow. The

sample primarily consists of women 653 (64%).

The respondents were mainly from Backward Class (38%), followed by Scheduled Caste

(31%), General (30%) and Scheduled Tribe (2%). In the total sample, about 9% belonged to

the minority group, who were Muslims. Accordingly the sample represents people from

various categories and classes of the society. Details of the respondents of profile are

presented under Annexure 1.

2.2 Details of FL Programme

The total respondents covered were 1,059 out of which 624 (59%) participated in formal

FLP, 416 (39%) participated in informal FLP whereas 19 (2%) did not participate in any

programme. The formal FLPs conducted include programs conducted by Mahila Prabodhini

Foundation under the UNDP-ISMW program, FLCC by Bank of Baroda, FLCC cum SHG by

Rajeev Gandhi Trust and Union Bank of India FLCC, Bal Chetana Trust, Development

Association for Human Advancement, Panchasheel Development Trust , Bird Development

Trust and Jan Kalyan Samastha under UNDP-NABARD initiative, Development Alternatives

under NABARD program including leading MFIs like NEED and Cashpor. Further details

are as under:

Table 4: Financial Literacy Programmes conducted

Type of

Programme

Programme

Name

Support

Agency

Facilitating

Agency

Area

Covered

Total

respondent

covered

Formal

Financial

Literacy for

poor women

UNDP ISMW Jaunpur,

Mirzapur

624 UNDP-

NABARD

Financial

Literacy

UNDP NABARD

Agra,

Baharaich

Meerut,

Jhansi

Informal

Financial

Literacy credit

counselling

Bank of

Baroda

Bank of

Baroda Rae Barely

416

Financial

Literacy CASPHOR Varanasi

Financial

Literacy NEED Lucknow

Financial

Literacy credit

counselling

Disha

Not given

permission

. Over

phone

Further detail of the above mentioned programmes are contained in Part II of the report.


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3.0 Tools used

Overall, lectures (22%) are found to be the most useful tool followed by posters (15%) and

video (14%) in imparting training to participants. Among the females the highest responses as

useful are for lectures (23%) and next is posters (16%) whereas among males highest is again

lectures (21%) and street play is next (18%). Lectures reported highest responses as useful

from minority (33%), PWD (28%) and all social categories as well. The tools used in

informal training are few in number when compared to formal training. But, during field

interaction, video was found to be more effective than lecture. Puppet show and quizzes were

also very useful by the participants. Games seemed to tough for participants as it was

difficult for them to understand.

As regards to the informal programme, it is mostly lecture (44%) followed by posters (18%)

and video (11%). The highest responses for lectures are from minority (79%), next from

PWD (65%) and then females (53%). The aged preferred, next to lectures (25%), video

(20%) and posters (16%).

Whereas in formal training it is lecture (16%), posters (18%), street play (15%) and video

(15%) are reported as most useful tools. Of these, lecture and audio-visual are the most

preferred aids by the participants. With highest responses reported of 20% for lectures, under

formal FLP, as against the formal FLP, the responses are not skewed towards any one tool

(lectures 44% with highest 79% from minority under informal) but several tools were

reported almost equal usefulness such as lectures (16%), video (15%), street play (15%),

posters (15%) and stories (11%).

To sum up, the formal programmes could successfully use multiple tools like lectures, video,

street plays, posters and stories as compared to informal programmes where lectures were the

most used methods and other tools were reported to be less used. Cross analyzing with field

data, the methods only used a traditional lecture method which was mostly recalled by the

participants. But in terms of effectiveness, the video and puppet shows had made more

impact.

A detailed list of tools used and respondent responses on usefulness is attached in Annexure

II

4.0 Duration of Programme

Overall, 50% of the respondents reported that the training programme with a duration of three

days or less as too short. 52% of respondents from the formal training and 45% from the

informal training reported that the training period was too short. However it may be noted

here that some of the programmes are conducted in multiple sessions where each session is

less than three days duration.

The overall suggestion from the respondents was to have the training programme for at least

3-7 days, but with multiple sessions, the reason was participants were not able to understand

as well as remember all topics at one time. Most of the respondents, both in formal and

informal training programmes (49%) suggested that the training programme should be

between 3 to 7 days.


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The feedback from many program participants usually brings out the duration was too short

and longer duration is suggested. However, considering the other activities of the

participants, and also with the fact that some of the programmes are conducted in multiple

sessions over a period wherein each session is of less than three days duration, this will be the

preferred duration with the assumption of multiple sessions. The approach of multiple

sessions also helps in recollecting the contents taught, absorption and possible practice of the

teachings over a period.

Table 5: Opinion on Duration

Type of

Training

Grand

Total

Too

Short

Adequate Lengthy Do not

know

Informal 416 26% 54% 5% 15%

Formal 624 43% 49% 3% 5%

1040 37% 51% 4% 9%

Table 6: Duration Suggested for FLP

Formal/

Informal

Total

Participants

<3

days >3-7 days >7-14 days >14-30 days >30days

Informal 416 19% 47% 8% 6% 21%

Formal 624 21% 50% 9% 2% 17%

Total 1040 20% 49% 9% 3% 19%

5.0 Participant’s satisfaction and urge for repetition

The analysis of the participant‘s satisfaction level across all categories is very encouraging

which reported as found satisfactory (62%) and urged for repetition (93%) of programme. In

field, team found that BPL category participants are very satisfied with FLP and particularly

programme reached very interior areas like Bichaai at Baharachi. It was one of the successful

parameter for programme. Even though, it was tough to understand all topics at a time, the

field team felt that Jaunpur District participants understood the program better than

participants in any other district.

The number of respondents wanting to participate in a repeat FLP is very high in both formal

and informal training programmes across all categories. About 97% of the aged, 98% of

formal and 93% informal participants showed interest for repeat program. The same figures

for general category was 96%, for ST and minority it was reported to be 95% be it formal or

informal. The reasons behind it was, as of now, ST community has lack of exposure due to

being left over from all development programmes. So, first time, it was very tough to educate

at one time. The details on responses for repeat FLP and satisfaction level on FLP

participation are presented in the Table vide Annexure III and IV respectively.

The participants‘ desire to participate in a repeat FLP is very encouraging but to ensure the

success of such programmes and to ensure that the same ultimately leads to Financial

Inclusion, the program needs an inbuilt mechanism to intensively work with the participants


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after the conduct of the program and also to monitor the repeat programs so as to ensure there

is an element of recall and new learnings are imparted.

6.0 General Behaviour-Pattern

This section describes respondent‘s behaviour with reference to deficit, utilisation of surplus,

tracking of income and expenditure as well as planning and preparation of budget.

As is evident from the data, there is a clear distinction between the respondents falling Above

and Below Poverty Line. The BPL households mostly cut down their expenses (26%) as the

first step in times of deficit. Next preference is to borrow money from friends (22%) and

SHGs (20%).

Interestingly, the above Poverty Line households mostly use their savings to meet deficit

(27%). However, participants also borrow from friends (19%) or cut down their expenses

(18%) as the next step. Field team found that Jaunpur people had understood well about

budget management and managing expenses better as well as planned way after the program.

Overall, not many APL and BPL households reported approaching financial institutions (8%)

during deficit as seen in the table below. The response to borrow money from banks is very

poor and it was 5% only. Interactions with these households at field revealed that the FLP

among the low income group had contributed to educate them on cutting down on

unnecessary expenses. The investigators also observed that the saving behaviour of the

respondents of the formal programme had been changed after the training programme.

A detailed behaviour pattern on deficit management by different category of community is

shown in Table No 7.

Table 7: Behavioural trend in deficit management

Items Above

Poverty

Below

Poverty

No

Response

Grand

Total

BC

Cut Down Expenses 17% 32% 0% 27%

Withdraw from Savings 34% 10% 0% 18%

Borrow from Friends 18% 19% 100% 19%

Borrow from Money

Lenders

10% 16% 0% 14%

Loan from SHG 16% 18% 0% 18%

Loan from Bank 5% 4% 0% 4%

Total 100% 100% 100% 100%

SC

Cut Down Expenses 22% 23% - 23%

Withdraw from Savings 26% 13% - 15%

Borrow from Friends 23% 26% - 26%

Borrow from Money

Lenders

10% 14% - 14%

Loan from SHG 14% 21% - 20%

Loan from Bank 4% 3% - 3%

Total 100% 100% - 100%

ST

Cut Down Expenses 22% 5% - 10%

Withdraw from Savings 22% 25% - 24%


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Items Above

Poverty

Below

Poverty

No

Response

Grand

Total

Borrow from Friends 11% 15% - 14%

Borrow from Money

Lenders

22% 25% - 24%

Loan from SHG 11% 30% - 24%

Loan from Bank 11% 0% - 3%

Total 100% 100% - 100%

General




Borrow from Money

Lenders

9% 15% 17% 11%

Loan from SHG 10% 22% 17% 15%


Total 100% 100% 100% 100%

Total




Borrow from Money

Lenders

10% 15% 14% 13%

Loan from SHG 13% 20% 14% 17%


Total 100% 100% 100% 100%

Analysis of surplus utilisation shows that the respondents across all categories have

inclination towards savings for future with whatever surplus they have got wherein the

responses vary from 86%to 40%. The highest response was from ST-BPL with 86% and next

highest was from general-BPL with 79%. The lowest responses to save for future were from

ST-APL with 40% and SC-BPL with 58%.

The participants‘ preference to save for future and the reported preference of APL to tap the

savings in case of emergency also points to initiate steps to encourage and enable savings.

This when combined with the desire to participate in repeat FLPs signals that the FLPs are

driving the participants towards financial inclusion.

Table 8: Trend on Surplus Utilization

Data Above Poverty Below Poverty No Response Grand Total

BC

Spend it 15% 15% 0% 15%

Buying assets 6% 1% 0% 3%

Invest in enterprise 11% 10% 0% 10%

Save for future 63% 64% 0% 64%

Do not know 5% 10% 100% 9%

Total 100% 100% 100% 100%

SC

Spend it 12% 20% 19%

Buying assets 3% 1% 1%

Invest in enterprise 11% 11% 11%

Save for future 64% 58% 59%

Do not know 10% 10% 10%

Total 100% 100% 100%


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Data Above Poverty Below Poverty No Response Grand Total

ST

Spend it 20% 14% 16%

Buying assets 0% 0% 0%

Invest in enterprise 40% 0% 11%

Save for future 40% 86% 74%

Do not know 20% 14% 16%

Total 100% 100% 100%

General

Spend it 15% 9% 0% 12%




Do not know 4% 6% 0% 5%

Total 100% 100% 100% 100%

Total

Spend it 15% 16% 0% 15%




Do not know 5% 10% 17% 8%

Grand Total 100% 100% 100% 100%

As regards keeping note of income and expenditure, very few participants responded

maintaining written records. However, it was observed from all FLPs that the SC group had

the least tendency/practice to maintain records in comparison to others. Field team observed

that participants are practicing by reducing the cost.

Table 9: Track of Income & Expenditure

Category No Record Broad Idea (No Records) Keep Records No Response Grand Total

BC 23% 74% 2% 0% 100%

SC 12% 82% 2% 4% 100%

ST 21% 69% 3% 7% 100%

General 20% 80% 0% 0% 100%

Total 19% 77% 2% 2% 100%

7.0 Saving

This section provides an overview of the financial products and related institutional

awareness among the respondents. After knowing the utilisation of surplus which shows

community inclination for saving, the survey tried to find out the pattern of saving. The

finding shows that respondents have got the habit of saving irrespective of the fact that it is

leftover surplus or purposeful saving. The BPL respondents reported to save the leftover after

(67%), while the APL respondents reported to save purposefully (53%). Incidentally, around

11% of BPL respondents reported as not able to save.

ST among BPL and APL reported 67% and 60% respectively to save leftover. The general

category under BPL (67%) reported to save only leftover while it was 58% for SC-APL, 53%

for BC-BPL. Respondents who saved purposefully were mostly from the APL category and

their figures were more than those of BPL category


Page 14 of 38

Table 10: Saving Pattern

Category Saving pattern Above Poverty Below Poverty No Response Grand Total

BC

Save Purposefully 53% 34% 0% 40%

Save Leftover 42% 53% 50% 50%

Not able to save 6% 12% 0% 10%

No habit to save 0% 0% 50% 1%

Total 100% 100% 100% 100%

SC

Save Purposefully 58% 41% 44%

Save Leftover 38% 49% 47%

Not able to save 2% 10% 9%

No habit to save 2% 0% 0%

Total 100% 100% 100%

ST

Save Purposefully 40% 27% 30%

Save Leftover 60% 67% 65%

Not able to save 0% 7% 5%

No habit to save 0% 0% 0%

Total 100% 100% 100%

General





Total 100% 100% 100% 100%

Total





Total 100% 100% 100% 100%

7.1 Saving Products

This section presents the reported awareness among respondents with regard to saving

products across different categories. It was found that knowledge of savings account was well

known across all participants. The awareness level of other products was found to be lower.

For fixed deposit it was 35%,, for recurring deposit it was (28%) and for no frill account, it

was 34%. The awareness level among the respondents of formal training programme was

found to be better than that of the informal training programme. Awareness under formal and

informal programs about savings is 76% and 64%; Fixed Deposit 34% and 37%, Recurring

Deposit 29% and 26%, No Frills Account 45% and 17% respectively.

7.2 Awareness level on Institutions

Overall, it was found that the Bank (52%) and SHGs (35%) were reported as the familiar

institutions for saving. However, respondents‘ awareness of interest rate of SHG was higher

when compared to the Banks. Respondents who reported that they are not aware about

companies (62%), PACS (75%) and Chit Fund (89%) as saving institutions were high. Again,


Page 15 of 38

the formal programmes were found to be more effective than the informal ones. Among all

social categories majority of responses from formal programs reflect awareness about banks

and their interest rate compared to informal program participants. Even among the

participants of SHG programmes, the awareness levels about banks are high. The details on

the responses on awareness about institutions and their interest rates are presented vide

Annexure V and Annexure VI respectively.

7.3 Content covered in FLP

Overall, the content of both the formal and informal programmes consist of the basic

principles like money management, management of cash flow, dealing with life cycle events,

financial decision making process and planning for future. The content of the formal

programme was found to be better structured and covered the overall financial education;

whereas the informal programmes mainly focused on organisational or sponsor‘s objectives.

7.4 Content Covered on Saving in FLP

Overall, the content covered in both the formal and informal training programmes with regard

to saving involve purpose of saving, operational and documentation procedure of Savings

Account and institutional details for saving. Again, the impact of the formal training

programme was found to be better than the informal ones. Overall, 65% respondents were

able to recall Grameen Bank and 46% of them recalled SHGs. Sixty-eight percent

participants from the formal programmes were able to recall the importance of saving for

future emergencies.

Table 11: Type of Institutes:

Institutions Informal Formal %

Grameen Bank 25% 68% 51%

Commercial Bank 10% 19% 15%

Cooperative 4% 12% 9%

Company 5% 19% 13%

Chit Fund 1% 2% 1%

MFI 57% 11% 29%

SHG/JLG 37% 62% 52%

Post Office 14% 36% 27%

Insurance Company 18% 46% 35%

Total Participants 416 624 1040

Table 12: Purpose of Saving

Topics Informal Formal Grand Total

To meet additional expenses 34% 50% 44%

To repay debts 15% 33% 26%

To purchase assets 11% 17% 15%

For children‘s future and education 39% 66% 55%

For future emergencies 51% 68% 61%

To invest 33% 34% 33%

To get interest income 8% 18% 14%


Page 16 of 38

To have a secured future 13% 35% 26%

Others 4% 3% 4%

Didn‘t teach anything 8% 2% 4%


It is found that participant‘s awareness and knowledge about interest rate was found to be

much higher with reference to formal programmes than those who had undergone informal

programmes for most types of institutions. The reason behind this was, formal programmes

covered about all institutions informal ones only dealt with their immediate objectives of

creating awareness about their services.

7.5 Impact

The survey found both the formal and informal FLPs impacting the respondents across all

categories with regard to financial inclusion. The respondents have started saving in financial

institutions like the Bank (20%), SHG (35%) and Post Office (28%) after attending the

informal FLP whereas the same with reference to formal FLP are Banks (38%) and SHG

(39%). Overall, there is significant impact from these training programmes (both formal and

informal).

Through investigators observation as well as respondents interaction, it was clearly

understood that formal programme respondent‘s savings behaviour had changed. In the field,

ISMW programme is facilitating to open a No Frill Accounts. In Jaunpur, it was huge

success. In Mirzapur and Sant Ravidas, it was failure, due to external causes.

Table 13: Impact of FLP-Saving

Informal Formal

Institution Category No Yes Already

saving

earlier

No Yes Already

saving

earlier

Bank BC 56% 38% 7% 57% 28% 15%

SC 58% 28% 14% 41% 45% 14%

ST 50% 50% 0% 15% 85% 0%

General 51% 35% 14% 26% 43% 30%

Female 60% 38% 2% 49% 47% 4%

Male 36% 22% 43% 30% 29% 40%

Minority 65% 34% 2% 52% 39% 10%

Others 53% 35% 12% 41% 40% 19%

SHG/JLG/CIG BC 58% 30% 13% 62% 30% 8%

SC 60% 24% 16% 45% 49% 6%

ST 50% 33% 17% 46% 31% 23%

General 47% 42% 11% 72% 23% 5%

Female 51% 34% 15% 42% 49% 9%

Male 69% 25% 6% 81% 16% 3%

Minority 51% 42% 8% 74% 16% 10%

Others 55% 31% 14% 57% 36% 7%

Post Office BC 94% 4% 2% 96% 4% 0%

SC 98% 1% 1% 90% 2%

8%


Page 17 of 38

Informal Formal

Institution Category No Yes Already

saving

earlier

No Yes Already

saving

earlier

ST 83% 17% 0% 100% 0% 0%

General 89% 7% 4% 91% 6% 3%

Female 95% 3% 2% 92% 7% 1%

Male 85% 9% 6% 93% 5% 2%

Minority 97% 3% 0% 100% 0% 0%

Others 92% 5% 3% 92% 6% 2%

Companies BC 92% 6% 3% 95% 4% 1%

SC 94% 6% 0% 92% 8% 0%

ST 83% 17% 0% 77% 15% 8%

General 90% 6% 4% 87% 8% 5%

Female 93% 6% 2% 92% 7% 1%

Male 87% 7% 6% 89% 7% 4%

Minority 95% 5% 0% 84% 10% 6%

Others 91% 6% 3% 92% 7% 2%

PACS (Cooperatives) BC 97% 3% 0% 98% 2% 0%

SC 99% 1% 0% 97% 3% 0%

ST 100% 0% 0% 100% 0% 0%

General 96% 3% 1% 95% 3% 2%

Female 98% 1% 0% 98% 2% 0%

Male 92% 7% 1% 96% 3% 1%

Minority 100% 0% 0% 100% 0% 0%

Others 97% 3% 1% 97% 3% 1%

Chit Funds BC 99% 1% 0% 100% 0% 0%

SC 96% 4% 0% 98% 2% 0%

ST 100% 0% 0% 100% 0% 0%

General 99% 1% 0% 98% 2% 0%

Female 99% 1% 0% 99% 1% 0%

Male 98% 2% 0% 98% 2% 0%

Minority 98% 2% 0% 100% 0% 0%

Others 99% 1% 0% 98% 2% 0%

8.0 Credit

This section presents the awareness level of respondents on different loan products. It was

found that the overall respondents‘ awareness on different loan products across all strata was

less than 50% (personal loan - 40%, vehicle loan - 42%, education loan - 40%, non-farm loan

- 44% and agriculture loan - 49%). Significantly, there is visible enhancement in awareness

among the participants of formal programme when compared to the informal programme.

The participants of the formal programme were found to be more aware of agriculture and

allied loan products. The content covered about various loan products is more in the formal

training programmes than in the informal training programmes (see Table No. 14).

Participants‘ awareness for different loan products is also high among the formal FLP

participants. It also shows that informal training content and awareness are more focused

towards personal or general purpose loan or agri-allied loan, especially from SHGs. There is


Page 18 of 38

visible difference in awareness among the participants of formal programme compared to

informal.

(A detailed list of loan products and its awareness across different category of respondents

are presented hereunder vide Table 14)

Table 14: Different Loan product covered in FLP

Type of Loan Informal Formal Grand Total

Personal Loan 46% 64% 57%

Vehicle Loan 41% 60% 52%

Education Loan 37% 60% 51%

Non Farm Loan 45% 60% 54%

Agriculture Loan 36% 63% 52%

Agriculture Allied Loan 40% 71% 59%


8.1 Awareness on Interest Rate of different Institutions

Overall, the respondents were well aware of the interest rates of loans from Bank and SHGs.

However, awareness on other institutions like the MFI and companies is low. Interestingly

the men were found to be more aware of the interest rates of Bank when compared to women.

Similarly, women were more aware of the interest rates of SHG and MFI. Once again, the

formal training programmes were found to be more effective in bringing awareness among

the participants when compared to informal ones. The details on analysis of responses on

interest rates are furnished under Annexure IV.

8.2 Awareness on procedure and documentation

Overall, respondents were aware of the procedure and documentation of institutions like

Banks and SHGs. There is significant increase in the awareness level of the participants of

formal programme about procedure and documentation. (Details are attached in Annexure)

8.3 Impact

Field team observed that the participant‘s awareness and knowledge was found high for

formal programme, but, interest rates was found to be much higher for informal programme.

The reason behind this was, formal programme is informing on all institutions but not

covering in-depth. The formal programme is project based and run for particular period while

informal is a continuous process wherein the participants also engage in financial

transactions, leading to higher knowledge about interest rates and other expenses.


Page 19 of 38

9.0 Insurance

9.1 Insurance Products

It was found that 69% respondents were aware of products related to life insurance. The

overall trend shows the awareness level of respondents in decreasing order was health

insurance (39%), cattle insurance (38%) and asset and micro enterprise insurance (27%).

However, both the informal and formal programmes have not significantly raised the

awareness levels of respondents as far as insurance products are concerned. Details are

furnished under Annexure VII.

While analyzing the content covered on insurance, it is found that in all training programmes

the coverage has been low. Based on the discussions the reason for the low coverage of

insurance, it was found that the subject is more technical or difficult for participants to

understand the concept.

Even though both the formal and informal training programmes emphasised on the need for

insurance, the other features like the terms and conditions of risk cover and when the claim

could be rejected were not covered by the programmes. Likewise, other features of insurance

like the maturity value and amount of risk coverage were also not taught to the participants in

both the programmes.

10.0 Post FLP empowerment of Female participants

Only 30% of the women reported to be head of the family, the corresponding figure for men

was 69 percent. The following Table no. 15 shows that 66% women respondents reported as

participating in financial decision making. Fourteen percent participants reported no change

in their status. Overall, formal training programme was found to be more effective. The field

team found that women in Rae Barely were more empowered than women in other areas. The

reason found to be the women involvement in income generation activities mainly through

enterprise development. This helps them in their skill enhancement and exposure which also

facilitated to take part in household decision making. Details on responses about status on

decision making are presented under Annexure VIII.

Table 15: Empowered after FLP

Categ

ory

Informal Formal Total

Yes,

I

enjo

y

bett

er

stat

us

Alrea

dy

part

of

decisi

on

maki

ng

No

,Cha

nge

No

Respo

nse

Yes,

I

enjo

y

bett

er

stat

us

Alrea

dy

part

of

decisi

on

maki

ng

No ,

Chan

ge

No

Respo

nse

Yes,

I

enjo

y

bett

er

stat

us

Alrea

dy

part

of

decisi

on

maki

ng

No

,Cha

nge

No

Respo

nse

BC 56% 21% 16% 6% 57% 11% 18% 14% 57% 17% 17% 10%

SC 63% 14% 18% 5% 83% 5% 8% 4% 78% 7% 11% 4%

ST 50% 17% 33% 0% 50% 0% 42% 8% 50% 6% 39% 6%

Gener

al

63% 21% 11% 6% 71% 7% 14% 7% 66% 15% 12% 7%


Page 20 of 38

Categ

ory

Informal Formal Total

Yes,

I

enjo

y

bett

er

stat

us

Alrea

dy

part

of

decisi

on

maki

ng

No

,Cha

nge

No

Respo

nse

Yes,

I

enjo

y

bett

er

stat

us

Alrea

dy

part

of

decisi

on

maki

ng

No ,

Chan

ge

No

Respo

nse

Yes,

I

enjo

y

bett

er

stat

us

Alrea

dy

part

of

decisi

on

maki

ng

No

,Cha

nge

No

Respo

nse

Minori

ty

63% 20% 13% 5% 53% 0% 24% 24% 60% 16% 15% 9%

Others 59% 19% 16% 6% 72% 8% 13% 7% 67% 12% 14% 7%

Total 59% 19% 15% 6% 72% 7% 13% 8% 66% 13% 14% 7%

10.1 Topics suggested for improved training

The topics suggested by participants for improvement of FL training have been shown in

Table No 16. The participants are looking for more elaborative information on process of

taking loan, loan products, insurance products and their terms and conditions. At the same

time there is an urge to know about different saving products.

Table 16: Topics suggested to be covered in FLP

Products Particulars Informal Formal Grand Total

Savings Information on Savings Products 33% 31% 31%

Opening Account 22% 21% 22%

Operating and Documentation 19% 21% 20%

Source of Cheaper Loan 26% 27% 27%

Total Number of Responses 916 1605 2521

Loans Process to take Loan 44% 46% 45%

Info on different loan products 45% 47% 46%

Other Information 11% 7% 9%

Total Number of Responses 499 750 1249

Insurance Information on Insurance Products 30% 31% 31%

Process of buying Insurance 21% 21% 21%

About Terms and Conditions 33% 29% 31%

Where can insurance be purchased 16% 19% 18%

Total Number of Reponses 745 1438 2183


Page 21 of 38

Part II

Compilation and Analytical Overview of Financial

Literacy Packages in Uttar Pradesh

11.0 Summary

Financial inclusion has been strategized as one of the potent tools to alleviate poverty by the

Government of Uttar Pradesh. To this end, the State has initiated Financial Literacy

Programmes (FLPs) in collaboration with Government agencies, voluntary organisations and

financial institutions. An independent assessment of the FLPs run in the State (using both

primary and secondary data), undertaken to give an overview of available FL packages,

identified the major active players working in both formal and informal FLPs. They include

organizations like ISMW, CASPHOR, NEED and bankers like Bank of Baroda and Union

Bank. The formal FLPs are mostly funded by UNDP implemented through ISMW and

NABARD in the State, whereas the informal FLPs make use of the FLCC and SHG

programmes to impart trainings. Of the two set of FLPs, the formal programmes were found

to be more effective and preferred by the beneficiaries, as these used lectures, audio-visual

aids, posters and puppet shows. The other reasons for its success involve cooperation of

Banks, hand-holding support and continuous monitoring.

12.0 Study Area

The study covered two formal and three informal programmes in the nine districts namely

Jaunpur, Mirzapur, Agra, Baharaich, Jhansi, Meerut, Rae Barely, Varanasi and Lucknow.

The programmes of ISMW and NABARD were studied for the purpose of formal FLP,

whereas the programmes of CASPHOR, NEED and Bank of Baroda were studied for

informal FLP. Here is an account of area-wise programmes and their resource agencies:

Table 17: Area-wise FL programmes and resource agencies

Type of

Programme

Programme Name Support

Agency

Facilitating

Agency

Area Covered

Formal Financial Literacy for poor

women

UNDP ISMW Jaunpur, Mirzapur

UNDP-NABARD Financial

Literacy

NABARD NABARD Agra, Baharaich,

Meerut, Jhansi

Informal Financial Literacy credit

counselling

Bank of

Baroda

Bank of Baroda Rae Barely

MFI CASPHOR Varanasi


Page 22 of 38

Type of

Programme

Programme Name Support

Agency

Facilitating

Agency

Area Covered

MFI NEED Lucknow

Financial Literacy credit

counselling

Union Bank of

India

Varnasi – visited

only office

Financial Literacy credit

counselling

Disha Not visited

13.0 Formal programmes

There are two major formal FLPs run in the State: Financial Literacy for Poor Women and

the NABARD FLP.

13.1 Financial Literacy for Poor Women

Name of programme: Financial Literacy for Poor Women

Sponsored agency: UNDP

Content designed and facilitated by: ISMW

Implementing agency: Mahila Prabhodhini Foundation

Objectives:

To build awareness on financial planning

To build awareness for financial planning or thinking about life cycle needs

To build knowledge about basic financial concepts to enable financial decisions on

risks and returns

To create demand for financial services

To build basic financial skills like preparing budget or plan for availing financial

services

To make proper and productive use of credit

Timely repayment and scaling up.

Duration of training: Three days (9 hours - 3hrs per day)

Description

The sample study found this programme to be successful and best in both imparting

knowledge on financial literacy and financial inclusion. A total of 2,776 participants have

been trained; 936 frill accounts and 1,418 saving account have been opened; 658 applications

for life insurance (Jan Shree Bima) and Rs.8, 600 deposits mobilised in 161 accounts. The

success of programme owes mostly to the structured trainings, timely inputs and continuous

monitoring. ISMW has deployed a separate team for monitoring and providing timely hand-

holding support.


Page 23 of 38

Content

The content focused on giving inputs on personal financial management and knowledge on

operational part for availing financial services. The topics covered include:

1. Personal financial management

a. Thinking for future vs. day-to-day living

b. Savings – habit formation

c. Credit

d. Consumption – impulsive behaviour/compulsive reasons

e. Insurance

f. Investment

g. Preparing a plan.

2. Operational knowledge to avail financial services (Banking – Savings, Credit and

Remittance)

a. Account opening procedure (for instance, KYC norms)

b. Types of saving accounts

c. Operational aspects (for instance, nomination)

d. Operational instructions (for instance, ‘Either‘ or ‗Survivor‘)

e. Terms and Conditions of credit for different types of schemes

f. How to avail insurance, remittance and services

Tools and methodology

It was found that the teaching aid was a key facilitator as it was tuned with the requirement of

the participants and content delivery channel. It was developed in the local language. The

audio-visual had the most impact compared to other tools. The movies ―Ganga Jamuna‖ and

―Ant & Grasss Hooper‖ were so effective in Jaunpur district that the participants recollected

the content and theme of movie even after three months of training. However, irregular

supply of electricity in few areas did hamper the process. Besides, lecture was also found to

be effective tool after the audio-visual. Overall, all the Training of Trainers (ToTs) were well

planned and monitored regularly.

Table 18: Teaching aids in formal FL programme by ISMW

Teaching aids Tools

- Trainers Guide for FL trainers

- Tips to trainers (soft skills)

- Videos/Films (six): Ant & Grass hopper (Planning), Ganga

Jamuna (planner vs. non-planner) and Izzat ka Sawal Hai

(Big ticket expenses)

- Posters (21 on messages of Financial Literacy)

- Songs (thematic songs on financial literacy components)

- Posters Booklet, Calendar, Budget Book and Charts

Lecture, Audio-visual

display, Flip charts, Flash

Cards and Posters


Page 24 of 38

Observation

Overall, the programme was found very effective by meeting its objectives. Beneficiaries

from Jaunpur district found to be more empowered compared to Mirzapur and Sant Rabi Das.

The proactive role of bankers was found to be one of significant factors of success. However,

most of the representatives of the Banks are not well equipped to handle training and

motivation. And one of the reason was allotted less amount for pilot study, particularly, not

included the cost of monitor and follow-up for implementing agency staff. In eastern U.P.,

particularly there was a huge current problem, here, generators cost was also not included on

project proposal. So, Implementer is paid from his pocket.

13.2 NABARD Financial Literacy Programme

Objective

Financial Inclusion through Financial Literacy

Description

The project has been implemented through partnership with local NGOs like Bal Chetana

Trust, Dev. Association for Human Advancement (DEHAT), Panchaeel Development Trust,

Bird Development Trust, Jan Kalyan Samastha and working in remote villages of Agra,

Baharaich, Jhansi and Meerut districts. The advantage of this programme is reaching interior

areas, involving children and college students. Audio-visual aids, puppet shows, quiz, poster,

wall painting and slogan have been used as main teaching aids. The quiz programme

conducted in the nearby schools and colleges sensitized the next generation considerably. The

movies ―Ganga Jamuna‖ and ―Raju Dreams and Money Tree‖ (developed by RBI) have been

found to be very effective in enhancing the awareness among the participants.

Although NABARD programme has tried to cover all parts of UP, there is a need for

continuous hand-holding support in financial inclusion. The programme covered tribal

households in a village in Behariach district have been covered under this programme. Yet,

the villagers urged for repetition of the programme, as one-time training here was inadequate

to impart knowledge among the participants. There is also demand from the other tribal

households in the area.

Training Aids

- Calendar

- Poster

- Wall Paintings

- Slogans

Methodology

- Village level meeting

- Quiz at village and schools and colleges

- Puppet show

- Two Films


Page 25 of 38

Observation

Even though the programme has reached the remote tribal villages, the programme was found

to be less effective due to lack of continuous support and monitoring from resource agencies.

Prior intimation was not given to community. So, participation was less. A marvellous

achievement are also happened in NABARD programme i.e., particularly reaching Bichaaiah

area at Baharaich District which is un-revenue ST village, 5 kms far from NEPAL border and

In Agra District, NGO had initiated Village Level Credit Counselling Centre at Taharpur

Village of Sainya Block and supporting surrounding two village populations.

The major gap found in NGOs is: Identifying the right NGO.

The following table shows over all districts, villages covered in NABARD-UNDP

Collaboration project on Financial Inclusion (through Financial Literacy)

S.

No.

Name of the

District

No. of

villages

covered

No. district

wise

meeting

with

NGOs,

Bankers,

LDM,

Local

leaders….

No. of

villages

having

village

level

meeting

(interactin

g with

PACS,

SHGs)

Puppet

Shows /

Nukkad

Nataks

was

happene

d in no.

of

villages

Quiz

Progr

amm

e at

Schoo

ls and

colleg

es

Wall

Paintin

g with

slogan

Remarks

1 Allahabad 5 1 meeting 5 5 5 0 Not visited

2 Agra 6 1 meeting 6 6 6 0 NGO started

Credit

Counselling

Centre at Village

level. It is useful

for 3 neighbour

villages. Visited

1 FFL and 4

VDP.

3 Firozabad 4 1 meeting 4 5 5 5 Not visited

4 Azamgarh 5 1 meeting 5 5 5 0 Not visited

5

Baharaich

4

1 meeting

4

4

4

0

Visited non-

revenue village.

Good at

Education

system

6 Bareily 5 1 meeting 5 5 1 0 Not visited

7

Barabanki

5

1 meeting

5

5

2

5

Not visited

8

Jhansi

5

1 meeting

5

2

2

0

Visited

9

Sitapur

5

1 meeting

5

5

5

0

Not visited

10

Moradabad

5

1 meeting

5

5

5

0

Not visited

11

Unnao

5

1 meeting

5

5

4

0

Not visited

12

Gonda

4

1 meeting

4

4

4

0

Not visited

13

Etawah

5

1 meeting

5

0

5

0

Not visited


Page 26 of 38

S.

No.

Name of the

District

No. of

villages

covered

No. district

wise

meeting

with

NGOs,

Bankers,

LDM,

Local

leaders….

No. of

villages

having

village

level

meeting

(interactin

g with

PACS,

SHGs)

Puppet

Shows /

Nukkad

Nataks

was

happene

d in no.

of

villages

Quiz

Progr

amm

e at

Schoo

ls and

colleg

es

Wall

Paintin

g with

slogan

Remarks

14

Meerut

5

1 meeting

5

2

5

0

Visited

Note: Opinion of senior officers was assessing the impact for 15 days Programme is very tough.

Overall observation of formal programmes

Training of Trainers is the best tool used by both the players and the village level meeting

emerged as the best training methodology. The state and district level meetings played as a

platform to get the overall view and understanding of all the stakeholders. In terms of tools,

films, puppet shows and quizzes were the most effective. The content had to be repeated

twice in the remote areas. Thus, it becomes vital to give a break of 3-4 days between two

training days as people need time for internalising new concepts. And, in case of remote areas

(particularly tribal), training has to cover more times than compare to normal rural areas. It

was also observed that wherever the banks were cooperative and the trainings were

accompanied by skill development trainings, the programme was a huge success.

14.0 Informal programmes

Objective

To provide credit counselling on repayment pattern, re-structuring, re-scheduling and fresh

credit during distress situations for rural people.

Description

It was found that most of the informal programmes were in the form of Financial Literacy

Credit Counselling (FLCC). The major objectives of FLCC are financial credit uptake,

providing financial counselling services through face-to-face interaction and e-mail, fax and

mobile, among others and educating rural and urban mass to avail products and services from

formal financial sector.

The major players in the informal FLPs in the State are the existing banks (Bank of Baroda

and Union Bank, Disha initiative of ICICI Bank), MFI (NEED and Cashpor) and NGOs

(Development Alternatives, NABARD partner). The content mainly covers the loan attributes

of the available loan products. The representatives of these institutions visit respective village

to provide concept and knowledge of loan products, their advantages and how to avail them.

The major target audience in informal FLPs is farmers, school children and youth. The audio-


Page 27 of 38

visual aids are not used here, as do the formal programmes. Yet, comic books, style

pamphlets and posters used to inform clients about available banking services and schemes.

Content

Opening bank account

Operational knowledge on FL services

Procedure for loan, savings and insurance system

Facilitation of government schemes

Identification of Rs.500/- and Rs.1000/- notes

Major Players

The study identified three major players in the informal FLPs in the State: SAARTHEE

initiative of Bank of Baroda, (Bank Bandhu) initiate of Union Bank of India and Disha

initiative of ICICI Bank

Bank of Baroda has opened FLCC Centres as part of their Corporate Social Responsibility

(CSR) initiative. The initiative is christened as ―SAARTHEE‖ amply indicating its basic

objective of steering those under financial distress and educating others to avoid financial

mess. In the same way, Union Bank of India has opened FLCC Centres and yet to be named,

tentative name is: Bank Bandhu. In the same line, ICICI bank has opened FLCC Centres and

performing very well by giving best service to community.

Summary and Way Forward

Summary

The population in Uttar Pradesh is more than 150 million. Nearly 53 banks are providing

bank services. About 30% of the villages are covered through the banking services and only

5% of the villages aware of Financial Literacy. Financial education is seen as an imperative

step towards financial inclusion and is required for all categories like poor, medium, rich

including rural, semi-urban and urban areas. The focus of financial literacy is primarily the

individual, who usually has limited knowledge and skills to appreciate the complexities of

financial dealings with financial intermediaries on a continuous basis. Through financial

Literacy Programme, financial education has reached to various categories like female,

deprived communities like SC and ST categories and covering interior villages.


Page 28 of 38

SWOT for FL Programme Strengths

ISMW FL training Programme:

o Identified 3 poor districts

o Covered poor families

o Proper planning and implementing

o Prior intimation to participants

o Used the piloted modules, tools and

techniques

o Used local trainers

o ToT had conducted in proper

structure way

o Exposure visit had organized for

trainers

o Monitoring and follow-up on FL and

facilitating for FI

o Involved local reputed NGO

o Made films with live case studies.

So, videos like Ganga-Jamuna, ant

and grass hopper, big tickets (budget

maintenance for marriages, death

ceremonies, big festivals) are

touching all hearts and able to

remember for long period

o ISMW had monitored implementing

agency

NABARD

o Covered interior areas, covering un—

revenue forest area like Bichaiah, 135

km far from Baharaich District and

facilitate to open bank accounts.

o Piloted in all regions of U.P i.e., 14

districts

o Facilitated NGO to initiate Village

Level FLCC at Agra

o Quiz, puppet show, Raju-ka-Phed

Video and involving school and

college students are highlighted

Weaknesses

Some of the Bankers are not favour of

involvement of private organization

programmes

Revised FLCC concerned staff are not clear

with roles and responsibilities

ISMW training Programme:

o Lack of planning on budget

preparation.

Shortage of funds for salaries of

trainers, particularly for the period

of monitoring and follow-up.

Shortage of funds for showing films

at villages, particularly for using

invertors in So, ISMW and NGO

paid additionally from their pocket.

o In-depth topics have to cover on

loaning interest rates

NABARD training Programme

o No monitoring from State Level Body

o No prior intimation to villagers

o Effective training programme is based

on District level officer and his

commitment on work. So, it varies

from one district to another district

o State as well as District officials have

lack of confidence on programmes

Opportunities

Both Government and Private Organizations

have piloted FLP across the state covering

both rural and urban areas. Model is well

understood and can be scaled-up further

NABARD is already involved in FLP. So,

there is lot of advantage to take further,

because, it is maintaining FI fund and its

presence in all districts

U.P. is largest state as well as poorest state in

India. So, FL is the one of the appropriate

measures to resolve or reduce the poverty

Adding FL topic in U.P. State Syllabus.

Threats

Both Private and Government Organizations

sometimes face bureaucratic hurdles

It is still a induced program with directions

from top, be it NABARD or facilitating NGO


Page 29 of 38

Future Strategies

1. Forming a Nodal Agency: Nodal agency have to identify to take further steps on FL

Programme. It helps to reduce (or) stop the duplication of similar activities and also

helps on mobilizing various FL resource fund from various schemes through

convergence

2. Scaling –up: U.P. is the large state. So, initially, focus to scale-up in poorest districts

of U.P. like Eastern U.P., Bundhel khand area etc

3. Identify the State as well as Regional / District Level Implementing Agencies: To

implement the FL Programme, identify the State Level Implementing Agency, who

has good command on FL and FI, through knowledge and experience. And also,

identify the regional /district level NGOs to implement the programme in ground level

4. Modify and Finalization of modules: Modules are already available. But, there is a

need to re-customize by incorporating some more contents like interest rates as well

as different types of insurance products etc and finalize the modules

5. Follow-up and monitoring: There is a need to regular follow-up and monitoring the

FLP. During follow-up, facilitator must link trainee with FI.

General recommendations

Bankers must aware on FL importance including why to open No Frill Accounts for

poor community

Bankers have to follow RBI guidelines like not using the banker‘s premises for FLCC

that means it also includes not using the premises of Bankers RUDSETI‘s also.

FL success when FL goes beyond it and includes skill development, it gives whole

shape and support for poor.


Page 30 of 38

ANNEXURES


Page 31 of 38

Annexure I: Profile of Respondents

Detailed district-wise coverage of sample respondents in below table:

District

Gen

der

Caste Aged Health Category Religion Annual Income in INR Grand

Total BC SC ST General <60 Yrs >=60 yrs PWD PWHA Others M

i

n

o

r

i

t

y

O

t

h

e

r

s

> 40,000 <=40,000

AGRA

Female 2% 0% 0% 1% 3% 0% 1% 0% 2% 0% 3% 1% 2% 3%

Male 1% 2% 0% 2% 4% 0% 0% 0% 4% 0% 5% 2% 3% 5%

BAHRAICH

Female 4% 1% 1% 3% 8% 0% 0% 0% 8% 0% 8% 1% 8% 8%

Male 2% 1% 0% 1% 3% 0% 0% 0% 3% 0% 3% 0% 3% 3%

JAUNPUR

Female 3% 8% 0% 0% 11% 0% 0% 0% 11% 0% 11% 1% 10% 11%

Male 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

JHANSI

Female 2% 1% 0% 1% 4% 0% 0% 0% 4% 0% 4% 2% 2% 4%

Male 7% 4% 0% 3% 12% 1% 1% 0% 13% 0% 13% 5% 8% 13%

LUCKNOW

Female 6% 3% 0% 5% 14% 0% 1% 0% 14% 4% 10% 9% 5% 14%

Male 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

MEERUT

Female 0% 0% 0% 1% 2% 0% 0% 0% 2% 1% 1% 1% 1% 2%

Male 1% 1% 0% 9% 9% 2% 0% 0% 11% 1% 10% 9% 2% 11%

MIRZAPUR

Female 1% 8% 0% 0% 10% 0% 0% 0% 9% 0% 9% 1% 9% 10%

Male 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

RAEBARELI

Female 1% 0% 0% 2% 3% 0% 0% 0% 4% 0% 3% 1% 3% 4%

Male 0% 0% 0% 0% 1% 0% 0% 0% 0% 0% 1% 0% 0% 1%

VARANASI

Female 7% 1% 0% 1% 10% 0% 0% 0% 9% 2% 8% 3% 7% 10%

Male 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Total 38% 31% 2% 30% 94% 6% 4% 0% 95% 9% 91% 36% 64% 100%


Page 32 of 38

Annexure II: Tools used in the Financial Literacy Programmes

Tools BC SC ST General Female Male <60 >=60 PWD PWHA Others Minority Other Total

Informal

Video 11% 11% 11% 12% 9% 17% 11% 20% 10% 50% 11% 1% 13% 11%

Street Play 6% 4% 6% 7% 3% 12% 6% 11% 5% 0% 6% 1% 7% 6%

Role Play 1% 0% 0% 2% 1% 2% 1% 5% 0% 0% 1% 0% 1% 1%

Stories 6% 5% 11% 8% 5% 11% 6% 9% 0% 0% 7% 0% 7% 7%

Posters 17% 20% 28% 18% 19% 18% 18% 16% 20% 50% 18% 16% 18% 18%

Songs 4% 5% 6% 6% 4% 7% 5% 7% 0% 0% 5% 0% 6% 5%

Flash Charts 2% 3% 6% 4% 3% 4% 3% 2% 0% 0% 3% 0% 4% 3%

Lectures 50% 51% 28% 36% 53% 26% 46% 25% 65% 0% 44% 79% 41% 44%

Games 2% 1% 0% 4% 2% 3% 3% 2% 0% 0% 3% 1% 3% 3%

Exposure Visit 1% 1% 6% 2% 1% 1% 1% 2% 0% 0% 1% 1% 1% 1%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Formal

Video 16% 17% 11% 13% 16% 14% 15% 14% 19% 17% 15% 12% 16% 15%

Street Play 16% 12% 19% 16% 12% 19% 14% 20% 17% 6% 15% 16% 14% 15%

Role Play 4% 4% 6% 8% 5% 6% 5% 6% 3% 6% 5% 5% 5% 5%

Stories 10% 13% 13% 11% 13% 9% 12% 8% 9% 17% 12% 13% 11% 11%

Posters 14% 16% 15% 13% 15% 13% 15% 11% 19% 17% 14% 13% 15% 15%

Songs 9% 10% 11% 10% 10% 9% 10% 8% 5% 11% 10% 13% 9% 10%

Flash Charts 6% 6% 6% 4% 6% 4% 6% 5% 3% 6% 6% 4% 6% 5%

Lectures 16% 15% 11% 16% 13% 20% 15% 19% 20% 17% 16% 12% 16% 16%

Games 6% 5% 6% 7% 7% 4% 6% 6% 1% 6% 6% 8% 6% 6%

Exposure Visit 2% 1% 2% 2% 2% 2% 2% 4% 3% 0% 2% 3% 2% 2%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Total

Video 14% 16% 11% 13% 14% 15% 14% 15% 17% 20% 14% 9% 15% 14%

Street Play 13% 11% 15% 14% 10% 18% 12% 18% 15% 5% 13% 11% 13% 13%

Role Play 3% 4% 4% 7% 4% 5% 4% 6% 3% 5% 4% 4% 4% 4%

Stories 9% 12% 13% 10% 11% 10% 11% 8% 8% 15% 10% 9% 10% 10%

Posters 15% 17% 18% 14% 16% 14% 16% 12% 19% 20% 15% 14% 16% 15%

Songs 8% 9% 10% 9% 9% 8% 9% 8% 4% 10% 9% 9% 9% 9%

Flash Charts 5% 6% 6% 4% 6% 4% 5% 4% 3% 5% 5% 3% 5% 5%

Lectures 26% 19% 15% 22% 23% 21% 22% 20% 28% 15% 22% 33% 21% 22%


Page 33 of 38

Tools BC SC ST General Female Male <60 >=60 PWD PWHA Others Minority Other Total

Games 5% 5% 4% 6% 6% 4% 5% 5% 1% 5% 5% 6% 5% 5%

Exposure Visit 2% 1% 3% 2% 2% 2% 2% 3% 3% 0% 2% 3% 2% 2%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Annexure III: Participants responses on a repeat FLP Programme BC SC ST General Female Male <60 >=60 PWD PWHA Others Minority Others Grand

Total

Informal 94% 92% 100% 97% 97% 87% 95% 93% 94% 100% 95% 100% 94% 95%

Formal 96% 93% 100% 97% 94% 96% 95% 98% 96% 75% 95% 94% 95% 95%

Total 93% 91% 95% 96% 94% 91% 93% 97% 93% 80% 93% 95% 93% 93%

Participants in Informal 189 85 6 136 329 87 402 14 18 1 397 65 351 416

Participants in Formal 201 236 13 174 369 255 573 51 25 4 595 31 593 624

Total Participants 399 326 20 314 706 353 994 65 44 5 1010 99 960 1040


Page 34 of 38

Annexure IV: Responses on Satisfaction level Type of

Training

Satisfaction Level Caste Gender Aged Health Conditions Gender Grand

Total BC SC ST General Female Male <60

Yrs

>=60

yrs

PWD PWHA Others Minority Others

Informal

Fully Satisfied 55% 61% 67% 51% 56% 52% 55% 64% 50% 100% 55% 40% 58% 55%

Satisfied to some

extent

32% 32% 33% 44% 35% 38% 36% 29% 33% 0% 36% 55% 32% 36%

Not Satisfied 13% 7% 0% 4% 9% 10% 9% 7% 17% 0% 9% 5% 10% 9%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Formal

Fully Satisfied 59% 73% 62% 68% 69% 64% 67% 71% 72% 100% 67% 77% 66% 67%

Satisfied to some

extent

33% 22% 38% 28% 27% 29% 28% 24% 20% 0% 28% 23% 28% 28%

Not Satisfied 7% 6% 0% 3% 4% 7% 5% 6% 8% 0% 5% 0% 6% 5%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

U P State

Fully Satisfied 57% 70% 63% 61% 63% 61% 62% 69% 63% 100% 62% 52% 63% 62%

Satisfied to some

extent

33% 24% 37% 35% 31% 31% 31% 25% 26% 0% 31% 45% 29% 31%

Not Satisfied 10% 6% 0% 4% 6% 8% 7% 6% 12% 0% 7% 3% 7% 7%

State Total 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Sample Size Informal 189 85 6 136 329 87 402 14 18 1 397 65 351 416

Formal 201 236 13 174 369 255 573 51 25 4 595 31 593 624

Total 390 321 19 310 698 342 975 65 43 5 992 96 944 1040


Page 35 of 38

Annexure V: Awareness about financial institutions

Institutions Awareness Level Informal Formal

BC SC ST General BC SC ST General Total (Overall)

Bank NO 42% 39% 67% 24% 23% 16% 31% 22% 26%

Yes but no idea of interest rate 44% 49% 33% 46% 62% 59% 62% 47% 52%

Yes also know the interest rate 14% 12% 0% 29% 15% 25% 8% 31% 21%

SHG/JLG/ CIG NO 41% 56% 67% 29% 41% 21% 46% 39% 36%

Yes but no idea of int rate 32% 25% 0% 37% 34% 44% 38% 35% 35%

Yes also know the int rate 27% 19% 33% 34% 25% 35% 15% 26% 28%

Post Office NO 68% 80% 67% 65% 64% 65% 69% 44% 63%



Companies NO 73% 82% 83% 70% 75% 72% 69% 56% 71%



PACS

(Cooperatives)

NO 89% 96% 83% 88% 84% 87% 100% 64% 84%



Chit Funds NO 92% 98% 100% 96% 90% 89% 100% 84% 91%



Sample size 189 85 6 136 201 236 13 174 1040


Page 36 of 38

Annexure VI: Responses on awareness about Interest Rates Formal/

Informa

l

Interest Rate in

Institutions

BC SC ST Gene

ral

Fema

le

Male <60 >=60 PWD PWH

A

Othe

rs

Mino

rity

Othe

rs

Gran

d

Total

Informal

Interest Rate of Bank 42% 51% 83% 63% 47% 68% 50% 79% 67% 0% 51% 43% 53% 51%

Interest Rate of SHG 37% 42% 83% 47% 41% 45% 41% 71% 44% 0% 42% 25% 45% 42%

Interest Rate of MFI 60% 56% 67% 58% 64% 40% 58% 71% 72% 0% 58% 72% 56% 59%

Interest Rate of Companies 23% 21% 50% 28% 22% 33% 23% 57% 39% 0% 24% 18% 26% 25%

Formal





Total





Sample

Informal 189 85 6 136 329 87 402 14 18 1 397 65 351 416

Formal 201 236 13 174 369 255 573 51 25 4 595 31 593 624

Total 390 321 19 310 698 342 975 65 43 5 992 96 944 1040


Page 37 of 38

Annexure VII: Awareness on Insurance Products

Formal/Informal Insurance Product BC SC ST General Female Male <60 >=60 PWD PWHA Others Minority

Informal

Life Insurance 63% 53% 50% 79% 66% 67% 65% 86% 56% 0% 67% 69%

Health Insurance 39% 38% 67% 49% 41% 48% 42% 64% 28% 0% 43% 38%

Asset Insurance 20% 20% 50% 35% 25% 28% 24% 57% 11% 0% 26% 15%

Cattle Insurance 20% 29% 50% 35% 25% 37% 26% 57% 11% 0% 28% 22%

Micro Enterprise Insurance 17% 22% 33% 32% 22% 31% 22% 57% 11% 0% 24% 20%

Other Insurance 6% 11% 17% 10% 7% 13% 8% 14% 11% 0% 8% 2%

Formal

Life Insurance 61% 74% 62% 76% 66% 76% 71% 59% 64% 75% 70% 65%


Asset Insurance 26% 28% 38% 32% 24% 35% 29% 20% 24% 50% 29% 32%



Other Insurance 10% 10% 0% 17% 7% 19% 12% 14% 16% 0% 12% 6%

Did not attend

Life Insurance 67% 80% 100% 75% 75% 73% 74% 100% 72% 67%

Health Insurance 56% 40% 100% 0% 50% 36% 42% 0% 44% 33%

Asset Insurance 44% 20% 100% 25% 50% 27% 37% 0% 39% 33%

Cattle Insurance 44% 40% 100% 25% 50% 36% 42% 0% 44% 33%

Micro Enterprise Insurance 44% 20% 100% 0% 50% 18% 32% 0% 33% 33%

Other Insurance 44% 20% 0% 50% 25% 45% 37% 100% 33% 0%

Total

Life Insurance 62% 69% 60% 77% 66% 74% 69% 65% 61% 60% 69% 68%


Asset Insurance 23% 25% 45% 33% 25% 33% 27% 28% 18% 40% 28% 21%



Other Insurance 9% 10% 5% 14% 7% 18% 11% 14% 16% 0% 11% 3%

Sample Size

Informal 189 85 6 136 329 87 402 14 18 1 397 65

Formal 201 236 13 174 369 255 573 51 25 4 595 31

Did not attend 9 5 1 4 8 11 19 1 18 3

Total 399 326 20 314 706 353 994 65 44 5 1010 99


Page 38 of 38

Annexure VIII: Responses on improvement in decision making status Category Informal Formal Total

Yes, I

enjoy

better

status

Already

part of

decision

making

No

Change

No

Response

Yes, I enjoy

better status

Already

part of

decision

making

No

Change

No

Response

Yes, I

enjoy

better

status

Already

part of

decision

making

No

Change

No

Response

BC 56% 21% 16% 6% 57% 11% 18% 14% 57% 17% 17% 10%

SC 63% 14% 18% 5% 83% 5% 8% 4% 78% 7% 11% 4%

ST 50% 17% 33% 0% 50% 0% 42% 8% 50% 6% 39% 6%

General 63% 21% 11% 6% 71% 7% 14% 7% 66% 15% 12% 7%

Minority 63% 20% 13% 5% 53% 0% 24% 24% 60% 16% 15% 9%

Others 59% 19% 16% 6% 72% 8% 13% 7% 67% 12% 14% 7%

Total 59% 19% 15% 6% 72% 7% 13% 8% 66% 13% 14% 7%

Documents

State Report: Uttar Pradeshcomtax.up.nic.in/Comtaxtrg/PDF/Economic Status UP/UP...Uttar Pradesh State Report Page 5 of 38 Scheduled Commercial Banks (including RRBs) operating in the