Library Publications Who Says You Can’t Do Micro Savings in India? Part 4: Practical Next Steps

Who Says You Can’t Do Micro Savings in India? Part 4: Practical Next Steps

23 Jul 2010 427
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The Note explores different ways and mechanisms in which informal markets work in providing savings to the poor. Their operations are quick and take place in the proximity of the clients. Formal institutions like banks and post offices get the advantage of stability, and thus are able to gain the trust of the poor. The note explores the need for a product that has combined features of both types of financial service providers. The note highlights the role of business correspondents as an alternative to provide saving services to the poor. Institutions are working towards making this initiative a success but there are issues around financial viability of the model. Financial products like pension schemes, life insurance, money market mutual funds, and gold savings are few other ways through which the poor have access to savings. The note further describes the potential role of MFIs in offering savings product as a viable business offering. This note attempts to provide an insight about the practical and real solutions most MFIs, SHGs cooperatives etc can take in order to provide market led micro savings.

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