MSC’s Community Toolkit for Locally-Led Adaptation offers stakeholders a structured, participatory process to assess climate risks and cocreate adaptation plans with local communities. It combines local knowledge with scientific data to map hazards, evaluate vulnerability, identify and prioritize adaptation options, and develop actionable, costed plans. We have designed the toolkit for local governments, civil society, and financial institutions. It builds grassroots ownership, strengthens institutions, and supports inclusive, climate-resilient development at the community level.
MSC’s MSME adaptation toolkit equips financial service providers so they can assess climate risks within their MSME portfolios and design tailored, climate-responsive financial products. It also empowers MSMEs to use participatory tools and supply chain mapping to identify exposure and vulnerability and develop adaptation strategies. The toolkit enhances portfolio risk management, supports product innovation, and enables financial service providers to help drive MSME adaptation and long-term sustainability. Through the toolkit, MSMEs can also cocreate solutions to build their resilience.
A complex web of issues hinders women’s access to credit in Bangladesh. Among the most significant hurdles women entrepreneurs encounter are bureaucratic red tape and complex documentation requirements. Collateral requirements by formal institutions are another significant barrier. In a society where women rarely own assets, such as land or property due to gendered inheritance practices, these prerequisites further marginalize women in the credit system. Additionally, lengthy and bureaucratic loan procedures deter women, particularly those with limited literacy or exposure to formal banking systems. As a result, women entrepreneurs are forced to seek informal credit, despite the risks and higher interest rates.
Women’s barriers to credit access are not limited to structural challenges. They are also rooted in sociocultural norms. Patriarchal traditions often limit women’s mobility, decision-making power, and financial independence. This leaves them reliant on male family members for financial transactions. Even when women legally own businesses, they frequently require male co-signers for loans, which further perpetuates their dependency. Furthermore, gender bias within financial institutions paints women entrepreneurs as high-risk borrowers, which discourages them from designing tailored financial products for these women.
Policy implementation gaps also hinder efforts to improve women’s access to credit. For example, while the Bangladesh Bank mandatorily allocates 15% of credit portfolios to women entrepreneurs, weak enforcement has rendered it largely ineffective. Similarly, credit guarantee programs designed to facilitate collateral-free loans remain underutilized due to their poor implementation and low awareness among beneficiaries.
Although Bangladesh’s financial landscape is riddled with these problems, they are not insurmountable. Innovations in gender-intelligent banking have emerged as a potential way to break down these barriers. These include financial products and services designed specifically to meet women entrepreneurs’ needs. For example, Mutual Trust Bank (MTB) provides a small-ticket savings product combined with a secured overdraft facility so that women can access short-term, low-cost credit based on their savings history. This approach encourages consistent saving habits and reduces reliance on collateral.
Another key development is the digitization of financial services. Bank Asia’s digital loan application system reduced the need for physical branch visits and simplified documentation requirements. This initiative minimizes opportunity costs and makes credit more accessible, particularly for women in remote areas.
Gender-disaggregated data can also play a critical role to make financial products and services more inclusive. Banks can use the customers’ data to create gender-intelligent strategies to better understand and address women entrepreneurs’ needs. Such strategies can help create more inclusive financial products, services, and delivery channels that can ultimately promote their financial independence and nurture sustainable business growth.
Gender-intelligent banking is not about offering more products but rather about transforming the financial ecosystem from within to be more inclusive. An increase in women’s representation in leadership roles can play a critical role to shape policies better aligned with their needs.
The problem of women’s unequal access to credit is not unique to Bangladesh. As per the International Finance Corporation (IFC), globally, women-owned businesses face an enormous financing gap of about USD 1.5 trillion in the formal SME sector. This disparity highlights a substantial untapped market for banks to expand their SME loan portfolios by investing in women entrepreneurs. The global context makes the condition in Bangladesh even more significant. Bangladesh can witness tremendous economic growth through gender-intelligent banking practices, tailored financial products, digitized services, and capacity-building programs. At the same time, financial institutions can address sociocultural and institutional biases and policy gaps to work toward the global goal of gender equity and financial inclusion.
Bangladesh is at a pivotal moment where investments in gender-intelligent banking can contribute to sustainable economic growth, reduce gender disparities, and create a more inclusive financial ecosystem. As the country stands at the cusp of a major transformation, its present situation is a call for stakeholders across the globe to create an environment where women-led enterprises flourish and build a more prosperous and fairer society.
This article was first published on CNBC TV 18 on 21st May 2025.
The Reserve Bank of India (RBI) has introduced new credit reporting guidelines aimed at improving the accuracy and timeliness of borrower information shared with credit bureaus. The Credit Information Reporting Directions, 2025, released this year, are designed to address issues in India’s credit assessment system. One of the key changes is the move to bi-monthly credit data updates. Lenders are now required to report borrower information twice a month—by the 7th and the 22nd. This reduces the lag in tracking repayments and helps curb overleveraging.
“Frequent updates reduce blind spots in credit data and ensure more informed lending,” said Shubha Bhanu, Lead, BFSI at MSC (MicroSave Consulting).
Previously, monthly reporting led to delays of up to 40 days, often leaving credit institutions with outdated borrower profiles. The revised timelines are expected to help lenders detect risks earlier and make better decisions.
Another major change is the standardisation of credit scores across all credit information companies (CICs). Scores will now follow a uniform range of 300 to 900, making it easier for both lenders and borrowers to interpret creditworthiness. The guidelines also streamline credit reports by linking borrower records to government-issued IDs such as PAN, passport, or voter ID. A single, consolidated report will now reflect all open and closed loans, defaults, legal actions, and coborrower or guarantor roles.
“These measures help eliminate fragmented data and provide a clearer picture of a borrower’s total liabilities,” Bhanu added.
Additionally, CICs can now share credit data with non-specified users—entities not traditionally allowed access—provided they secure borrower consent. This expansion in data sharing is balanced by strict privacy and security requirements. While the new norms may require significant tech and process upgrades for lenders, experts see them as a step toward a more transparent and responsible credit ecosystem.
In a small clinic in Mumbai, a doctor sees two patients back-to-back. The first is a severely underweight child stunted from years of malnutrition. The second is a 32-year-old man, obese and pre-diabetic. This stark contrast is a growing reality in India. While hunger remains a crisis, obesity is an equally urgent public health emergency. Yet, unlike diabetes or heart disease, obesity continues to be India’s silent epidemic—recognised but rarely confronted.
India ranks third globally in projected obesity-related economic losses after China and the US. Urban obesity rates range from 13 per cent to 50 per cent, and even in rural India, they hover between 8 per cent and 38 per cent. The proportion of overweight children rose 2.1 per cent to 3.4 per cent between recent national surveys (NFHS-4 to NFHS-5) (1). Obesity doesn’t stay solo for too long. It is often the precursor to many Non-Communicable Diseases (NCDs), including diabetes. Between 1990 and 2016, India’s diabetes prevalence jumped by 64 per cent (2), as cases skyrocketed from 26 million to 65 million. This is just one of the many health issues that stem out of obesity.
Obesity costs India an estimated USD 23.2 billion (3) annually in healthcare expenses and lost productivity. If current trends continue unchecked, global obesity-related GDP losses could soar to USD 4 trillion (4) by 2035.
Despite these alarming numbers, India lacks a coordinated response to obesity. The National Programme for Prevention and Control of Non-Communicable Diseases (NP-NCD) (5) labels obesity as a risk factor but allocates little direct funding to combat it. Other nations have taken decisive action – New York (6) banned trans fats, and the UK (7) and US (8) introduced sugar taxes—but India’s policy measures remain weak and poorly enforced. The government’s Eat Right India (9) campaign has made some progress in raising awareness, but it stops short of regulating food companies that flood the market with ultra-processed, high-sugar, high-fat products.
Obesity care is also financially out of reach for most Indians. While Ayushman Bharat (10) covers major health risks, it does not include obesity treatment or weight management programs. Private insurance policies exclude obesity-related care unless linked to severe complications. This forces most Indians to delay intervention until it is too late.
India’s food environment does little to support healthy choices. Unhealthy, ultra-processed foods are aggressively marketed, especially to children. Meanwhile, fresh, nutritious food remains expensive and inaccessible to many.
For low-income populations, deep-rooted cultural perceptions that link higher body weight with prosperity add another layer of resistance to obesity prevention efforts. Even those who wish to make healthier choices are constrained by poor urban planning. Indian cities are designed for vehicles, not people. Pedestrian walkways are scarce, cycling infrastructure is almost nonexistent, and green spaces where people can exercise are shrinking daily.
To prevent obesity, India must implement strong fiscal policies that shape healthier consumer choices. Taxes on sugary drinks and subsidies for fruits and vegetables can make nutritious food more accessible and discourage excessive sugar intake. Restricting junk food marketing to children and strengthening school-based nutrition and physical education will help instill lifelong healthy habits. Additionally, urban infrastructure should be redesigned to encourage physical activity, with more pedestrian pathways, cycling tracks, and recreational spaces.
Beyond policies, public awareness and cross-sector collaboration are essential. Culturally sensitive campaigns in schools, workplaces, and mass media can reinforce healthy behaviors. Technology can support weight monitoring, virtual counseling, and digital health services. Meanwhile, health, education, and urban planning must align efforts to create environments that support active lifestyles. The private sector should also be engaged in food reformulation and improved labeling to empower consumers.
Obesity care must be integrated into primary healthcare for early diagnosis and treatment. Ayushman Bharat Health and Wellness Centres should offer BMI screenings and trained counseling. Establishing referral pathways for specialised care and expanding dietitians and bariatric surgeons will improve access. Finally, affordable treatments, regulated therapies, and evidence-based interventions are key to ensuring effective obesity management.
By 2050, a third of India’s population could be obese. Yet India still lacks a national obesity registry, and prevention remains an afterthought (11).
The real question is not whether we should act on obesity but why we have not already. Will the country wait until this crisis spirals out of control, or will it take decisive action now? This World Health Day, India must stop seeing obesity as a secondary issue and start treating it like the public health emergency it truly is.
References:
1. Ministry of Health and Family Welfare, Government of India. 2021. National Family Health Survey (NFHS-5), 2019–21. https://mohfw.gov.in/sites/default/files/NFHS-5_Phase-II_0.pdf.
2. Pradeepa, R., and V. Mohan. 2021. “Epidemiology of Type 2 Diabetes in India. Indian Journal of Ophthalmology 69 (11): 2932–38. https://doi.org/10.4103/ijo.IJO_1627_21.
3. Okunogbe, A., R. Nugent, G. Spencer, J. Powis, J. Ralston, and J. Wilding. 2022. “Economic Impacts of Overweight and Obesity: Current and Future Estimates for 161 Countries. BMJ Global Health 7 (9): e009773. https://doi.org/10.1136/bmjgh-2022-009773.
4. Ng, Marie, et al. 2021. “Global, Regional, and National Prevalence of Adult Overweight and Obesity, 1990–2021, with Forecasts to 2050: A Forecasting Study for the Global Burden of Disease Study 2021. The Lancet 405 (10481): 813–38.
5. Ministry of Health and Family Welfare, Government of India. 2025. National Programme for Prevention & Control of Cancer, Diabetes, Cardiovascular Diseases & Stroke (NPCDCS).
6. Mello, Michelle M. 2009. “New York City’s War on Fat. New England Journal of Medicine 360 (19): 2015–20. https://doi.org/10.1056/NEJMhle0806121.
7. Rogers, N. T., S. Cummins, H. Forde, C. P. Jones, O. Mytton, H. Rutter, S. J. Sharp, D. Theis, M. White, and J. Adams. 2023. Associations between Trajectories of Obesity Prevalence in English Primary School Children and the UK Soft Drinks Industry Levy: An Interrupted Time Series Analysis of Surveillance Data. PLoS Medicine 20 (1): e1004160. https://doi.org/10.1371/journal.pmed.1004160.
8. Jones-Smith, J. C., M. A. Knox, S. Chakrabarti, et al. 2024. Sweetened Beverage Tax Implementation and Change in Body Mass Index Among Children in Seattle. JAMA Network Open 7 (5): e2413644. https://doi.org/10.1001/jamanetworkopen.2024.13644.
9. Ministry of Health and Family Welfare, Government of India. Food Standards and Safety Authority of India (FSSAI). https://eatrightindia.gov.in.
10. National Health Authority, Government of India. Ayushman Bharat Digital Mission. https://abdm.gov.in/abdm-components.
11. Kerr, Jessica A., et al. 2021. Global, Regional, and National Prevalence of Child and Adolescent Overweight and Obesity, 1990–2021, with Forecasts to 2050: A Forecasting Study for the Global Burden of Disease Study 2021. The Lancet 405 (10481): 785–812.
MicroSave Consulting (MSC) is a boutique consulting firm that has, for 25 years, pushed the world towards meaningful financial, social, and economic inclusion. These podcast series are hosted by MSC for dedicated founders, start-ups, investors, and other stakeholders in the startup ecosystem. Through this bouquet of curated conversations around developments in the financial inclusion space, we offer insights and lessons based on our research and expertise.
How can insurance transform how communities build climate resilience?
byMicroSave Consulting
In this episode, join Shirleen Regina Olalo and Vineet from MSC’s Banking, Financial, and Insurance services team. Hear from them as they explore how parametric and inclusive insurance solutions drive climate resilience for MSMEs in developing markets to ensure faster, smarter risk protection.
India’s public finance system has saved ₹26,000 crore in interest costs through reforms like TSA and SNA-SPARSH, enabling near real-time fund release. Yet, actual payments to beneficiaries often face delays due to manual approvals. Odisha’s pilot of a Smart Payment System under its MUKTA scheme offers a glimpse into the future — combining JIT fund release with rule-based automation. Scaling this model nationwide can eliminate delays, reduce administrative burden, and build trust in public service delivery. The next leap: real-time, algorithm-triggered payments that ensure transparency, efficiency, and last-mile impact in governance.
During her address at the 49th Civil Accounts Day on March 1, Finance Minister Nirmala Sitharaman underscored a landmark achievement in India’s public finance management — a savings of approximately ₹26,000 crore in interest costs since 2017-18. This remarkable feat has been enabled by the implementation of the Treasury Single Account (TSA) and the Single Nodal Agency (SNA) models, which have fundamentally restructured the government’s approach to fund disbursement.
At the heart of this transformation lies the shift to the SNA system for Centrally Sponsored Schemes (CSS), which has consolidated banking arrangements, curtailed idle funds (float) in bank accounts, and enhanced transparency in fund utilization. The subsequent transition to SNA-SPARSH (System for Payments and Reporting Across Sectors Holistically) has taken this evolution a step further — bringing the system closer to a true Just-In-Time (JIT) model of public expenditure.
The traditional model of credit or push-based fund release, where funds were disbursed in advance to implementing agencies, has now given way to a debit or pull-based system under SNA-SPARSH. In this framework, a debit to the Central Pool occurs only when an implementing agency issues a payment instruction, effectively pulling funds in real-time from the TSA to the end beneficiary’s account. This has significantly reduced the float across thousands of government bank accounts and, in doing so, has lowered the government’s borrowing requirements and associated interest burdens.
However, while SNA-SPARSH has enabled real-time fund release, the vision of real-time payments — the holy grail of JIT public finance — remains just out of reach. A critical time lapse still exists between the completion of work, the generation and uploading of payment files, and their subsequent approval. This delay in the final step of disbursing funds impacts frontline service delivery, particularly in vital sectors such as health, education, nutrition, and infrastructure.
The recent case in Haryana, where 600 private hospitals temporarily suspended services under the Ayushman Bharat scheme due to delayed payments, illustrates the fragility of outcomes when payment timelines falter. Although services resumed following government assurances, the incident underlines the urgent need for a more responsive, intelligent system of public payments.
Enter the Smart Payment System — a next-generation framework that builds on the successes of SNA-SPARSH but adds the critical layer of automation and algorithmic intelligence to achieve real-time, rule-based payments.
The Smart Payment System will rest on two foundational pillars:
Efficient Fund Release: Leveraging SNA-SPARSH’s ability to pull funds directly from the treasury to the beneficiary’s bank account, ensuring a zero-float system.
Efficient Payment Processing: Introducing real-time fund disbursement, triggered by algorithmically defined rules when predefined conditions are met, without human intervention.
For instance, under the Ayushman Bharat scheme, once a patient’s treatment is completed and verified by the State Health Authority’s claim processing doctor, the system should automatically trigger payment to the hospital. In infrastructure projects, once an engineer validates that the required work has been completed, the system should instantly initiate the payment, again, without the need for manual processing.
Such a smart system not only ensures fiscal discipline and transparency but also strengthens the last-mile impact of public expenditure. By eliminating delays and minimizing discretion, it can build trust among stakeholders, from hospitals and contractors to citizens, and ensure that government spending truly delivers on its promise.
As India continues to digitalize its governance and public finance architecture, the Smart Payment System could represent the next great leap forward — one that brings governance closer to real-time accountability, efficiency, and service delivery.
India’s public financial management has undergone a quiet but powerful transformation in recent years. From the introduction of the Treasury Single Account (TSA) to the rollout of the Single Nodal Agency (SNA) model and its advanced iteration, SNA-SPARSH, the country is steadily moving towards a Just-In-Time (JIT) funding regime. These reforms have already yielded significant dividends — ₹26,000 crore saved in interest costs since 2017-18 — by curbing idle funds and tightening fiscal discipline.
Yet, while fund release has reached near real-time through SNA-SPARSH, fund disbursement — the actual payment to beneficiaries upon completion of services — continues to suffer from procedural delays. Payments often lag due to the time it takes to generate, upload, and approve payment files, even after work has been verified. This gap undermines the potential of these financial innovations and affects real-world outcomes in sectors such as health, nutrition, and infrastructure. The recent impasse in Haryana, where private hospitals suspended services under Ayushman Bharat due to delayed payments, highlighted this critical bottleneck.
Fortunately, the solution may already be within reach.
One such promising model is emerging from the state of Odisha, which is piloting a smart payments ecosystem for its MUKTA scheme — a flagship urban wage employment initiative launched during the COVID-19 pandemic and now part of the Mukhyamantri Sahari Vikas Yojana. The program initially grappled with several familiar challenges: delayed wage payments, idle funds, and administrative inefficiencies.
To address these, the Odisha government has engineered a two-pronged system:
A Just-In-Time fund release mechanism for the State Finance Department, enabling Urban Local Bodies (ULBs) to pull funds directly from the state’s consolidated fund.
A rule-based payment processing platform called MUKTASoft, developed for the Housing & Urban Development Department.
Together, these components allow ULBs to transfer funds directly to beneficiaries, including wage-seekers, Self-Help Groups (SHGs), and vendors, the moment payment conditions are met. The system is designed to autonomously trigger payments based on preset rules, significantly reducing manual intervention and easing the administrative burden on local officials.
Now being piloted in 23 of the state’s 149 ULBs, early indicators are promising: the project has effectively eliminated idle fund parking and cut payment delays by 57%. These are not just efficiency improvements — they are tangible enhancements in governance and service delivery.
Odisha’s smart payment model offers a glimpse into the future of public payments in India. By integrating rule-based algorithms into the SNA-SPARSH framework, the Government of India can unlock the next stage of reform — one where payments are not only just-in-time but also just-in-context.
Imagine a system where, once a hospital successfully treats a patient under Ayushman Bharat and a doctor certifies the claim, the payment is instantly credited — no paperwork, no waiting. Or where, upon an engineer’s digital verification of a completed infrastructure milestone, contractor payments are auto-triggered. This isn’t a far-off dream — it’s a logical next step built on the foundation already laid by TSA, SNA, and SPARSH.
The call to action is clear: the central government should consider a final, focused reform of the SNA-SPARSH system — one that adds autonomous, rules-based payment processing. By doing so, it can complete the JIT payments architecture, reduce administrative overhead, and ensure beneficiaries and vendors are paid swiftly and fairly.
As these reforms scale, India could soon emerge as a global exemplar in digital public finance, where governance is lean, responsive, and citizen-centric.
This op-ed was first published on etedge-insights on the 22nd of April, 2025
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