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Road MapI. Status Quo:• Vicious Circle
II. Financial Inclusion
III. Case Study – Wadarwadi• Plan – Koshish• Feasibility• Monthly Income and Expenditure• Financial Planning – Stage 1• Financial Planning – Stage 2• Comparative Analysis
IV. Conclusion
Vicious Circle
FINANCIAL ILLITERACY
Prey to Frauds
Lack of Saving Habit
Bank Account
Financial Inclusion
Incentives to Users
Incentives for Banks
Demand Side ProblemSupply Side Problem
Financial Literacy
Case Study - Wadarwadi
10 Women (6 Domestic Helps, 4 House-wives) and Their Families
Husbands – Daily Wage Labourers / Employed in Offices for Menial Jobs
Average Family Income – Rs. 10 to 15K / Month
Mostly Illiterate
3 women Had Bank Accounts
Unaware of Bachat Gats
Formal Financial
Institutions
Target Population
INFORMATION ASYMMETRY
Information Asymmetry
KOSHISH
FINANCIAL ILLITERACY
Plan - Koshish
Step 1: Formation of Bachat Gat
Step 2:Bank Linkage
Step 3:Financial Planning for Poor
For Active Intermediation
For Institutional Support
For Sustainable Change
Objective – Bridge Information Asymmetry
The Innovation: Financial planning
Creation of Relevant Information Pool
Creating Apt Financial Plan
Optimum Saving Generation
Institutionalising Savings
Financial Planning => “Upward Spiral”
Upward Spiral => Addresses the Supply Side Problem
Financial Pyramid - Feasibility
• Gat Membership – Initiated to Banking
• Community Based Endeavour
• Tutorials Ensure Personal Finance
• Trickle Down Effect
• Bank Linkage + Financial Planning - Incentivises Use of Accounts
• Accounts – Used for Deposits + Credit Collection
• Future Potential – Investments in Gainful Financial Products
• Financial Planning => More Bank Accounts => Small yet Steady Deposits.
• Risk Mitigation System => Efficiency + Relaxed Interactions with SHGs
Incentives for Users:
Incentives for Banks:
Bank Accounts:
Income & Expenditure (Rs. / Month)
Name Personal Occupation Spouse’s Income
Family IncomePrincipal
(Domestic Help)Part-time
Diksha 7500 1500 - 9000Nirmala 6000 - 8000 14000
Name Medicine Food Rent Loan Electricity School Fees
Others Total
Diksha 2000 1000 500 1420 80 - - 5000Nirmala 2000 1500 700 - - 700 100 5000
Income
Expenditure
• Use of Generic Medicine - 20% to 40% of Medicine Cost
• Bank Loan @ 9% to 10% instead of 25% from Informal Money Lender
• Free Education for the Girl Child till Class 12, in Government Schools – Maharashtra Government Scheme
Financial Planning – Stage 1
Areas of Potential Saving
Name Investment (Rs.)
Rate of Interest
(%)
Maturity Period (Days)
Interest *(Rs.)
Total Amount
(Rs.)Diksha 4000 8.5 365 350 4350Nirmala 3500 8.5 365 307 3807* Quarterly Compounded
Financial Planning – Stage 2
Case – I : Scenario before planning
Case – II : Scenario after planningName Investment
(Rs.)Rate of Interest
(%)
Maturity Period (Days)
Interest *(Rs.)
Total Amount
(Rs.)Diksha 5600 8.5 365 492 6093
Nirmala 7500 8.5 365 659 8159
Diksha Nirmala
Comparative Analysis
