"We may be poor, but we are so many. Why don't we start a bank of our own ? Our own women's bank, where we are treated with the respect and service that we deserve."
- Chandaben, old clothes seller,
Founder - member, SEWA Bank
"How many times do we need to prove that poor women are bankable?"
- Jayshree Vyas, M.D., SEWA Bank
"Rural Activities"
Over 70 percent of the populations in villages are dependent on agriculture for their survival. In Gujarat, which has an erratic rainfall and where the average land holding size though 7 acres but with skewed distribution, people often land up putting their assets for mortgage just to meet their day to day needs. Being increasingly dependent on agriculture, which occupies only 2 to 3 months of their time when they work in their fields, they are forced to look out for other sources of income. And more of then than not they land up in the vicious circle of poverty. Realizing the grave need of banking for the rural sector, Sewa Bank began providing banking services at the doorsteps of poor women. This concept was revolutionary in Indian banking history. It had the desired impact.
In the year 1993, Sewa Bank began its banking activities in the rural districts of Gujarat after getting the required permission from the Reserve Bank of India . Carried out through the formation of self-help groups, who collect savings from the members and deposit it with the bank, the formation of these groups saw the culmination of SEWA's efforts to organize women agricultural laborers in rural areas, which began in 1977.
How these groups function makes interesting reading. Once motivated by Sewa Bank's staff, these women elect their own leader and also give a name to their group. The group then formulates rules and regulations as to membership, savings, loans and management. Sewa Bank trains the group in matters of administration, accounting and management.
If after a year, the group is regular in saving, it becomes eligible for borrowing. The loan sanctioned is in the name of the group and is in direct proportion to its savings. It is for the group to decide the disbursement to the individual and that included the amount, interest and repayment schedule. The bank also provides support for releasing mortgaged land and other productive assets; meeting working capital needs; acquiring assets and for creating productive infrastructure. The groups may rotate their own savings as loan.
Providing banking services at the doorstep of these poor women in order to pull them out of the vicious circle of poverty and free them from unscrupulous moneylenders, thus making them self-sufficient is a long drawn process but a beginning has been made. The whole purpose of this exercise is to strengthen them at the grassroots level itself and make them the owners, user and managers.
Activities in Districts
What started as a mere project in a district outside Ahmedabad city, where Sewa Bank has its origins, is today, a movement, which is fast growing and gathering momentum encompassing in its fold more and more members.
Today, Sewa Bank covers 10 districts of Gujarat and has been instrumental in not only cultivating the habit of saving amongst its members, but in bringing out leadership qualities in them as well. This has seen confidence, which was severely lacking grow manifold. This became possible because the bank decided to not only bank with its customers, but bank on them for making further inroads and help more of their ilk to overcome financial difficulties. The top it all they have assets and capital to fall back on.
