ATMs are becoming more accessible to rural India

In India there are about 30,000 Automated Teller Machines (ATM) as of late 2007. Most of these are located in urban areas. However, now Banks are extending this service to rural areas through the following steps:

• Banks are beginning to introduce ATMs in rural areas.
• Some banks have started providing ATM cards to Kisan Credit Card (KCC) holders. As a result of this, these farmers need to go to the bank only to get their KCC loans sanctioned. After that, they can do most of their transactions using an ATM machine.

Also, ATMs are being introduced with features that makes it easier for rural people to use:

• Lower cost ATMs designed by IIT, Madras and IIT, Bombay.
• Voice navigation in local Indian languages.
• Fingerprint verification.
• Back-up power to ensure smooth operation during power failures.
• Can work in dusty environment.

Better rural credit through the Kisan Credit Card (KCC) and the Swarojgar Credit Card (SCC)

The Government of India introduced the Kisan Credit Card (KCC) scheme in 1999.

According to a recent survey report, over 65 million KCCs had been issued by early 2007.

This credit, typically, covers the working capital needs of the farmers for a crop cycle. You borrow the money when you need to buy inputs such as seeds, tools, fertilizer, pesticides and labour. Once the crop is harvested and sold, the amount has to be repaid. The credit becomes available again for the next season. This helps the farmers to avoid traditional money lenders and the exorbitant interest rates charged by them.

In 2004 this scheme was expanded to cover more types of loans:

• Term loans for agriculture and allied activities.
• A reasonable component to meet consumption needs.
• Many banks also offer Personal Accident Insurance Scheme at a very nominal premium.
• Some of the banks have launched KCCs that can be used in an ATM machine.

The Swarojgar Credit Card Scheme (SCC) was introduced in 2003. The SCC aims at providing working capital and term loans to small artisans, handloom weavers, fishermen, self employed persons, rickshaw owners, other micro-entrepreneurs, self help groups (SHG), etc. Farm sector activities like fisheries, dairy, etc., can also be covered under the scheme. About half a million SCCs had been issued by Sept 2006.

You can get a Kisan Credit Card or a Swarojgar Credit Card from any of the following:

• Commercial banks
• Co-operative banks
• Regional Rural Banks (RRB)

Business school for rural women who have no formal education

A woman who has successfully completed the training program at Mann Deshi Udyogini — Micro Business School for Rural Women — in Satara district of Maharashtra.

Training program provided by Mann Deshi Mahila Sahakari Bank and its sister NGO, the Mann Vikas Samajik Sanstha, in association with HSBC.

• To help the women become entrepreneurs and access the benefits of micro finance.
• A free counseling session helps tap the interest and possible skill sets of the women. They are then encouraged to take the requisite course.
• The courses will range from just a day to 10 days.
  

Topics covered:

• Vocational training in technical skills such as computer training and bag making.
• Financial literacy.
• Marketing techniques and communication skills.
• Confidence building.

Microfinance boosts agriculture, water resources and other rural income

Bhagyamma Vadla in Chityala, Andhra Pradesh was able to get a small loan for buying water buffaloes. She is now able to get a steady income by selling milk.

Small loans for farmers in Theni, Ramanathapuram, Kancheepuram and Madurai districts of Tamil Nadu helped to build land and water assets.

• Rejuvenation of tanks and ponds in Theni district.
• Focus on fertiliser in Sirumaniyendal in Ramanathapuram district.
• Combined with life insurance for reducing risk and vulnerability of families.
• Microfinance groups used the common funds to immediately close tank breaches during flash floods in Madurai district.
• Savings have also improved. Six microfinance groups in Ponpadhirkoodam in Kancheepuram district have a total saving of Rs. 1.97 lakh.

Some of the microfinance lenders:

• SKS Microfinance: Has 507 microfinance branches in 14 states mainly in Andhra Pradesh, Karnataka, Maharashtra, Orissa, Madhya Pradesh. Loans for a range of income-generating activities, including livestock, agriculture, trade (such as vegetable vending), production (from basket weaving to pottery) and new age businesses (beauty parlor to photography).
• SHARE Microfin Limited: Has 312 microfinance branches mainly in Andhra Pradesh, Chhattisgarh, Karnataka, Maharashtra and Madhya Pradesh.
• Gramin Koota: Has 44 microfinance branches mostly in Karnataka.
• SEWA Bank: Mainly in Gujarat.
• Spandana Charity Trust: Mainly in Andhra Pradesh.
• ICICI Bank, Canara Bank and other banks.
• In Tamil Nadu, you can contact Dhan Foundation for more details on microfinance options for water and agriculture. Dhan can be reached at 26280236 (Chennai) or 04522601673 (Madurai).