Prathama Model
Ever since its inception Bank has closely involved itself in the sphere of Rural Development and has initiated significant innovative strategies to accelerate the pace of socio economic development and promote integrated rural development from time to time. Realising the inescapable need for being close to the rural society the bank took the initiative for the success of micro credit development through people’s participatory programme i.e. SHGs and a innovative tool named as “Prathama Model” was developed and implemented on the basis of Bank'’ past experiences of rural development, field work and research.
This low cost model is a synergic combination of “Bank Officers” and “members of farmers club”. The credibility, motivation and field work of Bank staff supported by ground level touch, leadership quality and acceptability of volunteers by rural brethren resulted in synergic and cascading effect for rural development through micro credit.
Bank’s Strategy:- Bank is playing a pivotal role for the success of micro credit by incorporating it as a a top priority in its corporate plan. All cadres of Bank staff as well as members of Farmers’ Clubs are provided training for micro credit so as to involve the maximum human resources available for success of the scheme. This active combination of Bank’s human resources with sincere and missionary efforts of volunteers have resulted in synergic and cascading effects by formation of more than 19000 SHGs and linkage of 15000 SHGs. Prathama Model in pictographic form is shown below:
Bank + FCs’ member = A magic in rural development
(Credibility +Motivation +Field work) ( Acceptability +Ground level touch - ( People’s participation through SHGs)
- Missionary Zeal)
Bank’s long standing in the area, image of the Bank and government sponsorship makes Bank’s approach extremely credible in the eyes of rural people, they have full faith in whatever Bank tells them, however to convince the people for new schemes especially to illiterate or semi-literate and under privileged class even the Bank’s propagating the SHG scheme has little impact, people understand the schemes well onlywhen the persons within themselves whom they respect explain the utility of the schemes to them. This ground level touch and local dialect is effective only when it is backed by Bank’s credibility. Bank has effectively combined these two virtues of its own and member of Farmers’ Clubs and this has made a tremendous impact in formation of SHGs and their financial linkages with Bank.
Both Bank officers and club members jointly & also individually visit villages and organise SHG meetings and explain them intricacies of SHG movement & various aspects of maintenance including accounting procedures and lending within themselves and also from the Bank.
Prathama Model’s Achievement:- This low cost model has added new dimensions in the field of rural development, mainly through creating awareness
amongst them and through microfinance. Bank is making dedicated efforts for socio-economic awareness of rural population in its service area and more than 600 such programmes were organised during the last six years and during the year 2007-2008, 175 such developmental programmes have been organised. All these efforts have made it possible to encompass more than 204465 members in the ambit of Self Help Group Scheme thus developing in them the habit of “savings for future”. More than 15000 SHG linkages have provided new ventures to around 150000 group members to start their income generating economic activities varying from Dairy, Retail shops, Boutique, Beauty- Parlor spare part shops , bee keeping, printing press and even preparation of vermi compost, paint brush making, bag making, Readymade garments, zari work, silver foil making etc. heartening feature is that through these more than 19000 SHGs around 91000 group members have been saved from the clutches of exorbitant interest rates of money lenders, by meeting consumption & contingency needs through inter loaning. Which otherwise would have clutched them in the cobweb of indebtedness and debt bondage as in the past.
PRATHAMA MODEL-A TOOL FOR SOCIAL ECONOMIC CHANGE:- Other innovative achievement worth to be mentioned here is that this people’s participatory programme has been able to wipe out or curtail evils of drinking, child marriage, dowry etc. A new awakening has been created for education, sanitation, organic farming, plantation & pollution free environment. A new feather to its cap was added when these Self Help Groups took an initiative by shouldering the responsibility of providing primary education to rural children andpresently four SHG primary schools are running at Taroli, Taharpur, Khempur & Kota Alinagar villages.
Impressed by the working of Self Help Groups, Administrative authorities has allotted a fair price shop to one of SHG functioning at Bilaspur in Rampur District. This year members of Farmers’ Clubs and SHG members actively participated in pulse polio movement & Sarva Siksha Abhiyan and this registered a significant number of children attended under the programmes as compared to previous years.
Impressed by success of Prathama Model, new social security and credit products have been introduced by the Bank ::
SHG Insurance Scheme: Bank has extendedinsurance coverage to SHGs members under JPA scheme. Premium amount is Rs 15/ per member for 01 year and Insurance cover is Rs. 50000/.
SHG Credit Card Scheme: Bank has started a Credit Card facility to SHGs who have availed credit facility twice and repaid timely. The maximum limit of Card is Rs 5.00 lac.
Housing Scheme for SHGs members: Bank is going to implement housing loan scheme for SHGs members.
Micro Enterprises : For encouraging micro enterprises, Bank has provided a term loan of Rs, 1.50 lac and SOD limit of Rs. 1.00 lac to Prathama farmer’s Club, Taharpur for encouraging honey business.
PRATHAMA MODEL- A BUSINESS STRATEGY :- Prathama Model is successful in belying the common myth that Banking with poor is a risky venture. The recovery rate is more than 94% in this scheme. Moreover due to social pressure through SHGs and Farmers’ Clubs, some hard core NPA accounts have become regular or recovered . Most important feature of this model is that cost involve is very low. Prathama Model has given great boost to “IMAGE” of the Bank inparticular and “Growth” in business in general.
Prathama Model and Bank micro credit programme being a pioneer role -model has been a subject of study and motivation for various agencies, the bank had the privilege to host visit of the following official/dignitaries for its study
Executive Director of NABARD – Sri Ali Miyan in 1999
Mr. Melcom Harper, Advisor to the World Bank in 2000
Executive Director of Syndicate Bank Sri M.S. Kapoor in 2001
Distt. Development Managers, NABARD from all parts of the country every year
The Chairmen of all Rural Banks of U.P. in 2001
Top officials from NABARD, Mumbai and Lucknow.
Chairmen of Regional Rural Bank of Uttranchal
Top officials from Lead Banks of the State in 2003
BIRD and NationalBankersCollege, Lucknow.
Top Govt. officials from Haryana in 2003
C.G.M. NABARD U.P. R.O. every year
NIBM, Pune and GTZ from Switzerland in 2003
Visit by NIESBUD Delegation comprising international participants from different countries every year
Name of the Club :: Prathama Krishak Club Sarkara Kamal
Branch:: Sarkara Kamal Distt. J.P. Nagar
Date of formation:: 13-04-2004
Total members:: 13
Chief Coordinator:: Sri Gajendra Singh
Associate Coordinator:: Sri Kamendra Singh
13 Progressive farmers of Service Area of our branch Sarkara Kamal took the initiative and came forward for formation of farmers’ club which decided to work for the development of the Area in a dedicated way. 5 Club members attended the training programme on Bee keeping at Syndicate Institute of Rural Development Moradabad and started Bee keeping activity.
SLCRC members visited the Sarkara Kamal Branch on
10.01.2008 and interacted with office bearers of Kisan
Club & SHG members
Impressed by their success 300 unemployed youth started this activity after getting training with the help of Farmers’ Club by the end of March 2008. This Farmers’ club was instrumental in saturating the farmers of 25 villages of the Operational Area by providing Kisan Credit Card facility. Besides this landless labourers were provided Prathama Swarojgar Credit Card and General Credit Card facility for starting their own economic activity. Krishak Club organised camps at various villages for providing knowledge about Vermi Compost. Later-on training programme at branch level was conducted & result was encouraging. About 40 families are preparing vermi compost and stopped use of Chemical fertilizers and saved the expenses being incurred on them. Besides this reclamation of Soil fertility has been maintained. Farmer Club has also organised SHG awareness programmes. Presently branch is having 265 working SHGs. SHG members have been trained in Silver foil making , Stitching, Tailoring , Bee keeping, Candle making , Zaree work, Dona making , Handle making, Dairy, organic farming, Turmeric farming , Mobile repairing, Fruit processing activities. A Health check-up camp for women was organised by the farmer club during the year and 108 women were provided medicine free of cost. A camp for cattle vaccination was also organised by the club.
Members of the farmers club went on exposure visit to SardarPatelAgricultureUniversity, Meerut, G.B. Pant Agriculture and technical University Pant Nagar and Service Area of other branches to collect latest information on High tech Agriculture. Club members visited Pant Nagar Agriculture Fair on 07.10.2006 for acquainting themselves of new HYV seeds and new agri implements. This club celebrates July month as month of Tree Plantation & every member of the club plants at-least 25 trees. Club also participate in Pulse Polio, helps poor widows and Old women in getting pensions. Parents of poor children were encouraged to enroll their wards for primary education and upto some extent books are also being provided to such children by the Farmers’ club. Downward shifting of water table has resulted in non availability of drinking water in the area. Farmer club took initiative to address this problem and approached Member of Parliament and local MLAs which resulted in installation of India Mark Hand pumps at public places. Club was also instrumental for construction of 23 Km long pukka road from Narangpur to Dhakka diversion. In July 2007 farmer club cleaned/ cleared the community pond for water conservation. Club also provided information on Medicinal Plants, Horticulture , Cultivation of Fruit etc. Keeping in view the downward shifting of water table club organised a training programme on System of Rice Intensification with an objective to take maximum yield with less water. Rural students are unable to utilise their ability and capability due to non availability of light. Club members took a initiative for propagation of Solar Light which resulted in installation of 125 Solar Home Lighting Systems. 200 SHGs were formed and 175 were linked due to active involvement of this Farmers’ club. Farmers’ Club has also played a pivotal role in business growth of the branch by educating villagers about credit and deposit products which has resulted in substantial growth in deposit mobilization and advances of the branch. Club has also educated the villagers about the utility of timely repayment and result is that branch NPA is nil. Villagers were also informed about the necessity of Insurance and Soil testing. For propagation of organic farming and getting certification club has registered 200 farmers at the branch level.
Krishak Club actively involved itself in 100% financial inclusion by conducting survey work and helping in opening of No frill accounts. Club also played a leading role and helped the branch in freeing all the villagers of 3 villages from the clutches of Money lenders.
Impressed by the constructive work of the club, NABARD Lucknow awarded the consolation prize to the farmer club in 2005-06 and Mr. Gajendra Singh Chief Coordinator represented the farmers in RBI , Lucknow for discussion of simplification of procedures in providing loan to farmers. Sri Sukhbir Singh, CGM NABARD visited branch on 05.03.2007 and appreciated the efforts of the club. International team of 12 countries having 17 members visited the branch for study of Prathama Model of Micro-finance and were so much impressed that they took a vow to implement this low cost model in their country for eradication of poverty . No doubt Prathama Krishak Club Sarkara Kamal is playing a key role in transformation of technology, Propagation of Solar light , Vermi compost,Plantation and Primary education etc.
Torch Bearers in Rural Development
When we think of farmers, we generally think of a person of ordinary means with little motivation for adoption of new technology but Prathama Krishak Club,Taharpur has changed this image about villagers and farmers. A brief write up on this club is presented below-:
Name: Prathama Krishak club, Taharpur
Branch: ; Taharpur
Date of formation: 17.02.1999
Total Members : 15
Chief Coordinator :Sri Prem Singh Arya
Ass. Coordinator : Sri Rajendra Singh
Monthly contribution : Rs 25/ per member
Prathama Krishak club,Taharpur in its formative stage mainly concentrated on social activities and formation of SHGs .Dedicated members of club played a pivotal role in popularizing the concept of Self Help Group. The club actively involved itself in popularizing primary education , plantation . women education , Polio Vaccination, Sanitation etc. Club was also instrumental in establishment of SHG school at KaranpurMafiVillage and also renovated a 100 years old ShivaTemple. A Cycle rally from Tahrapur to Haridwar was also organised for popularizing concept of SHG. Later on this club actively involved itself in economic activities and members of the club started bee keeping and vermi composting after getting training with support of NABARD. The sincere efforts of the club for socio economic upliftment were recognized by apex body for Agriculture and rural development i.e. NABARD from time to time and for the last 7 consecutive years this farmers’ club is awarded with the best farmers’ club of the state. Impressed by its performance NABARD has provided a grant assistance for establishment of Rural Mart for marketing of the SHG’s products mainly Honey and thus saving Honey producer from the clutches of middle man and fetching them reasonable price of their product. For improving the quality of honey a processing unit of honey is also being run by the club. By March 2007 around 400 units of bee keeping have been established and their turn over was Rs. 50.00 lac and during the year 2007-08 this turn over has surpassed the level of Rs.100 lac thus bringing a revolutionary change in the lives of villagers in the area.
Main activities performed by the club during 2007-08 –
01-In May 2007, Club took the initiative for popularising solar Home Light Systems and now 35 families are taking benefit of solar light.
02-In June 2007, Club constituted 3 teams from its volunteers headed by Prem Singh, Khacheru Singh & Gyanchand Sharma for guiding the bee keepers in proper management of disease and mitigating the problems of Bee Keepers.
03-For Water Management in June 2007 , Club was instrumental in cleaning / clearing a community pond at Rajhoha village.
04-In July 2007, Club under took plantation programme and more than 200 plants were planted.
05-Club organised meet with expert programme for popularizing system of rise intensification ( SRI) in June 2007.
06-In Aug. 2007 a team of 15 farmers was sent on exposure visit to village Beehta for propagation of organic farming.
07-In Oct. 2007 on the occasion of Gandhi Jayanti club organised a programme for making villagers, aware about rural sanitation .
08-In Oct. 2007 a five days training programme on bee keeping was organised under SDP and 50 unemployed youth participated in training programme and started bee keeping.
09-In Nov. 2007, 200 farmers were provided training for taking up organic farming.
10-The club volunteers participated in Lucknow Mahotsava for marketing SHG products
11-In Nov.2007 a stall was also put up at Tigri Mela for marketing SHG products.
12-02 Honey boxes free of cost were provided to 4 poor persons for starting their activity.
13-A team from Indian Institute of Management, Lucknow visited Taharpur to study impact of Farmers Club in economic development and was impressed by the role played by the Club in economic development of the area.
Besides this, Club has also helped Branch in 100% financial inclusion of the service area and in freeing villagers of 03 villages from the clutches of money lenders. Club was also instrumental in spreading financial literacy and banking habits among villagers which has resulted in substantial growth of business and phenomenal reduction in NPAs level.Club went on exposure visit to Aligarh, Ahmed Nagar, Pant Nagar university.
Branch Manager Taharpur & Chief Coordinator of Taharpur
Farmers’ s Club are receiving Award at BIRD, Lucknow
Prathama Krishak Club Taharpur is synonym to Prathama Model of rural development . The members of Farmers club, Bank staff and local people are deeply involved in the development of the area.
Prathama Model- Rural Development through people’s participation
Prathama Model’s evolution was the result of Bank’s past experiences in rural development, fieldwork and research. This low cost model became an effective tool for transformation of life in rural areas. Prathama Model was instrumental in changing socio-economic framework of rural society. Extension and Development programmes for socio-economic awareness of rural population were organized, Besides this Bank staff and members of farmer’s club worked amongst the rural masses with dedication and missionary zeal to change their mind set. Prathama Model was pioneer in promoting and sustaining SHGs, these SHGs opened new vistas to their members, the rural who were accustomed to farming or were working as agricultural labourers started diversified economic activities. Thus improving their economic status. Thousands of have-nots who were in the ambit of moneylenders were able to free themselves from the clutches of moneylenders. Prathama Model became an effective tool for spreading financial literacy amongst the rural population. Besides this Prathama Model was effective in improving the quality of life, evils of Drinking, Child marriage, Dowry, extravagance on social functions were curtailed or wiped out. Prathama Model was successful in disseminating the importance of primary education especially girl child education, sanitation, organic farming, plantation, water management, women empowerment, pollution free environment and renewable resources of energy.