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A Project Report On THE ROLE OF WOMEN IN MICRO FINANCING: A case study in Dimoria Development Block By MD. CHAFIKHUR RAHMAN

Chapter –1 INTRODUCTION AND RESEARCH METHODOLOGY 1.1 Introduction: The economy of Assam is predominately rural and agriculture is the most dominant acting in the rural economy. As per 2001 census about 89 per cent of the state population lies in rural areas and 69 per cent of the total work force depends on agriculture and allied activities for their livelihood. But the contribution of agriculture to the net state domestic product (at current price) is only 34.19 per cent indicating agricultural backwardness. Inadequate supply of rural credit is one of the factors responsible for preponderance of traditional form technology leading to low productivity. Small and marginal farmers who dominant the farm sector cannot afford to invest on modern inputs from their own resources. Commercial Banks are not providing adequate credit to the rural poor. Performances of Cooperatives and Regional Rural Banks also have been unsatisfactory. Inadequate and ineffectiveness of the formal financial system to cater to credit needs of the rural poor, has promoted Non Governmental Organizations (NGOs) to emerge as an alternative system of rural credit delivery through the network of Self Help Groups (SHGs). The main aim of NGOs is to improve the quality of life of the poor under privileged rural and urban people. Following the emergence of NGOs sector in the country several agencies and departments of the central and state governments like HUDCO, SIRD (The State Institute of Rural Development), HDFC, Ministry of Agriculture, NABARD, started using NGOs for extending credit and other welfare services to the rural women. Women have a higher unemployment rate than men. Providing employment to such a huge number of women unemployment is a Herculean task the government. One important solution to this problem lies in fostering SHGs among the disadvantaged people and involving NGOs in guidance and support services viz. finance management, enterprise development, packaging and pricing of products in consultation with expert teams studded with industries/industry managers to the SHGs. NGOs, facilitate formatting of SHGs, nature and guide them in various aspects of savings and credit operatives, book keeping conduct of meeting, group process etc. when the SHGs matures, the NGOs as the promoting agency, facilitates credit linkage of SHG, with Banks. NGO not only possess capabilities to provide various credit supporting services but are also seem capable of overcoming same of the well known problems of traditional formal sector institutions mainly become of their familiarity with local conditions. The rural poor are still dependent on informal sources of credit due to their low accessibilities of credit from formal financial institution. Thus the rationale behind micro finance has its roots in the failure of formal credit institution in effecting meeting the financial services requirements of the poor. Against this backdrop, micro finance through SHGs was deigned after a series of studies by NABARD. The guiding spirit behind micro finance initiative are- 1.	Cost effective approaches to formal institutions for expanding out reach to poor. 2.	Effecting pursue the objective of growth by facilitating empowerment of rural poor, especially women. 3.	An alternative channel to formal banks for micro credit delivery to poor and financial depending in rural areas. 4.	Micro finance can help in economic growth as well as income earning capacity. 1.2 What is Micro Finance? Micro finance is a broad term that includes deposits, loans, payment services and insurances to poor. The concept of micro finance and micro-credit are used interchangeably but micro-credit does not include savings. Hence, micro finance is a more appropriate term. Micro Finance is defined as a provision of thrift, credit and other financial services and products of very small amounts to the poor in rural, semi-urban or urban areas for enabling them to raise their income level and improve living standards. The above definition was given by the task force on supportive policy and regulatory framework for micro finance created by NABARD (National Bank of Agricultural and Rural Development). As per one of the working groups of RBI (Reserve Bank of India), it refers to small saving, credit and insurance services extended to socially and economically disadvantaged segments of the society. It is that type of banking service, which gives service to unemployed or low-income groups, or individuals who have no means of availing these services. Micro Finance includes the range of financial products such as micro loans, micro savings and micro-insurance products that micro finance institutions (MFIs) offer to their clients. The person who gained worldwide recognition for his remarkable contribution in the field of micro finance is Professor Muhammad Yunus, Head of the Rural Economics Program at the University of Chittagong. Prof Muhammad Yunus was awarded the noble Peace Prize for his remarkable contribution. 1.3 Objectives: This project work covers the following objectives- 1.	To study how women are engaged in NGOs or SHGs and how they are able to create job opportunities. 2.	To study the role of women in micro financing. 3.	To study how the women are able to raise the village economy. 1.4 Hypothesis: This project work assume that women able to raise the micro finance through NGOs or SHGs in Dimoria Development Block. 1.5 Research Methodology: This research will be conducted as a case study. Primary and secondary data will be collected. (a)	 Primary Data: For collecting primary data a questionnaire will be prepared for the women members of NGOs or SHGs for getting information about their activities regarding micro finance. (b)	 Secondary Data: For collecting secondary data journal, reference books, Internet will be referring. 1.6 Limitation of the study: (c)	Study will be limited to particular accounting methods of NGO or SHG. (d)	 Study will be respect of works of women, not others. Chapter - 2 WOMEN AND NGOs & SHGs It is no doubt true that micro finance has phenomenal growth in recent year in Assam, it is happening due to play better role by NGOs and SHGs, where a large number of women members are engaged. Before going to discuss the relationship among the women and NGOs and SHGs, it is better to discuss the meaning and the concept of NGOs and SHGs. 2.1 What is an NGO? An NGO is (a)	Formally or informally organized around shared purposes; (b)	Nongovernmental, and so not part of the state apparatus; (c)	Self governing rather than externally controlled; and (d)	Voluntary both in the sense of being non-compulsory and in the sense of voluntary involvement in their governance or operations. Different authors and institutions have defined the term NGO differently. The definitions are entirely or largely independent of government and that have primarily humanitarian or cooperative rather than commercial objectives. They are private agencies in industrial countries that support international development; indigenous groups organized regionally or nationally. From the point of view of functions, NGOs include charitable and religious associations that mobilize private funds for development, distribute food and family planning services and promote community organization. They also include independent cooperatives, community associates, water user societies, women’s groups and pastoral associations. Citizen groups that raise awareness and influence policy are also NGOs. This is a part of the Standard Definition put forwarded by World Bank. Here are so many definitions regarding NGO as followed, 1.	An NGO is a non-profit making, voluntary, service oriented or development oriented organization, either for the benefit of members (a grassroots organization) or of other members of the population (an agency). 2.	It is an organization of private individuals who believe in certain basic social principles and who structure their activities to bring about development to communities that they are servicing. 3.	An NGO is a social development organization assisting in empowerment of people. 4.	It is an organization or group of people working independent of any external control with specific objectives and aims to fulfill tasks that are oriented to bring about desirable change in a given community or area or situation. 5.	An NGO refers to an independent, democratic, non-sectarian people’s organization working for the empowerments of economic and socially marginalized groups. 6.	Such organizations are not affiliated to political parties, generally engaged in working for aid, development and welfare of the community. 7.	 An organization committed to the root causes of the problems trying to better the quality of life especially for the poor, the oppressed, the marginalized in urban and rural areas is called an NGO. 8.	Organization established by and for the community without or with little intervention from the government; they are not only a charity organization, but works on socio-economic-cultural activities are nothing but NGOs. 9.	It is an organization that is flexible and democratic in its organization and attempts to serve the people without profit for itself. 10.	An NGO is an independent, flexible, democratic, secular, non-profit people’s organization working for and assisting in the empowerment of economically and socially, marginalizes groups. 2.2 What is a SHG? According to NABARD, self-help group means a group of about 20 homogeneous people who come together for addressing their common problems. They voluntarily save on a regular basis, mobilize their savings and invest on micro-enterprises. According to Planning Commission of India, SHG is a self-governed, peer-controlled, small and informal association of the poor, usually from socio-economically homogeneous families who are organized around savings and credit activities. Members of SHGs meet weekly or monthly and discuss common problems and share information to come to a solution. Group members make effort to change their economic and social problems through mutual assistance. The conceptual thinking behind SHG initiative was that self help supplemented by mutual help could be a powerful vehicle in the upward socio-economic transition of the poor. Poor can save and are bankable. Collective wisdom of the poor and peer pressure are valuable collateral substitutes. 2.3 Relationship between Women and NGOs & SHGs: The economy of Assam is though poor but the growth of Micro Finance Organizations are increased day by day in Assam, which help the women to work for the development of the economy of Assam. Now, the village women are also able to understand the important role and significance of NGOs and SHGs in the field of economic development. NGOs perform very well in the field of economic development in Assam. Following table shows the number of NGOs existing in Assam, district wise- Table no: - 1. Number of NGOs Existing in Assam District	No. of NGOs 1.	Borpeta 2.	Bongaigaon 3.	Cachar 4.	Darrang 5.	Dhemaji 6.	Dhuburi 7.	Dibrugarh 8.	Goalpara 9.	Golaghat 10.	Hailakandi 11.	Jorhat 12.	Kamrup 13.	Karbi Anglong 14.	Korimgang 15.	Kokrajar 16.	North Lakhinpur 17.	Marigaon 18.	Nagaon 19.	Nalbari 20.	North Cachar Hills 21.	Sivsagar 22.	Sonitpur 23.	Tinisukia 9 1 8 7 4 4 5 2 3 5 5 60 10 5 3 9 7 5 17 1 10 10 2          Total	188 Source: - State Focus Paper Assam 2003-04, NABARD. According to State Focus Paper Assam 2003-04, there are 188 NGOs, functioning in different parts of Assam. Among the districts, Kamrup top the list followed by Nalbari Karbi, Anglong, Sivsagar and Sunitpur. This task snows that kamrup covers 60 NGOs. And Dimoria covers a huge part of the district Kamrup, it indicate that maximum NGOs of Kamrup district works for the development of the economy of Dimoria. Though Dimoria Block was economically backward Sub District of Kamrup, but after the functioning of NGOs like Surjyadoy Samaj Kalyan Sammittee, Surujmukhee Sanchay Asani, Nazirakhat Samannay Natya and Sangskritik Goasthi, SIRD etc. it is rapidly going towards the development of the economy. All these NGOs are able to provide jobs to the women. These help to raise the family income also. SHGs also perform very well in the field of economic development in Dimoria Development Block. In Dimoria there are many organization and programs, which form SHGs for the development of the rural economy. Following table shows the number of SHGs existing in Dimoria, Table no: - 2. Number of SHGs Existing in Dimoria Name of the Block/Program/NGO	Name of Villages	No. Of SHGs	No. of Women member 1.	Dinoria Development Block. 2.	3.		Covers all the village in Dimoria Development Block-	676	676X10=6760 SIRD	Gumoria-	50	50X10=500 Maloybnari-	10	10X10=100 Swarna Jayanti Gram Swarozgar Yojona	Medhikuchi-	7	7X10=70 Goriaghyli-	13	13X10=130 4.	Sujyadoy Samaj Kolyan Sammittee	Nazirakhat-	20	20X10=200 Total	--	776         	776X10=7760 Total SHGs under register of Dimoria Development Block is 676. All the member of these SHGs are women. It indicate that more than 6760 (Since one SHGs contains more than ten women) women are engaged in SHGs and they are able to earn their minimum need income working in their own group or small firm. Again there are two SIRD adopted village, Gumoria and Maloybari. In Gumoria there are more than 50 SHGs and in Maloybari there are more than 10 SHGs under register of SIRD. In Nazirakhat village there are more then 20 SHGs under register of Sujyadoy Samaj Kolyan Sammittee. Again in Medhikuchi and Goriaghuli Village, there are 20 SHGs under the Program ‘Swarna Jayanti Gram Swarozgar Yojona’. In Dimoria, there are more than 7760 women are self employed and they are able to help their husbands in maintaining household, able to help their parents or they can use their income in case of study also. Chapter - 3 SELF EMPLOYMENT AND SOCIAL DEVELOPMENT & ECONOMIC DEVELOPMENT 3.1 Women and Self-Employment: Women have higher unemployment then men. So women are engaged in NGOs & SHGs and thus they self-employed. In Assam there are more than 188 NGOs and more than 3,76,00 SHGs work for the rural development through the small monthly savings of the member only with the bank loan and government grant. In Dimoria there are more than 776 SHGs work for the development of the rural economy where more than 7760 women are engaged. As the survey report shows in Gumoria village, there are more than 20 SHGs working. It indicates in one village more than 200 women are self-employed. These women are able to provide short-term employment to others also. Their main production is ducks and eggs. They need casual workers at the time of eggs selling in the market and to carry the duck’s food from the town. In this way they self-employed and provide employment to others also. 3.2 Women and Social Development: NGOs and SHGs make significant contribution to socio economic development. Often they enjoy advantages over government and private sector institution and can deliver services to the society with an effective manner. Much of the success of NGOs come from dynamic leadership and committed staff. NGOs usually are more flexible and Innovative and are affected less by bureaucratic constraints. While developmental NGOs vary greatly in size and helping people and benefiting society. International and national NGOs support large-scale activities ranging from social welfare to environmental and political advocacy. NGOs at the local level provide services that include commodity organization, health, education, welfare support, small financial intermediation and environmental production. As the survey report shows in Nazirrkhat village women, who are the member of SHGs, now they starts to make clean the roads covers the Nazirakhat village. Again they plants in the site of 37 No. National Highway, which is passing through the village. There is one NGO in Nazirakhat village, Nazirakhat Surjyomukhi Sonschoy Committee, they awards the merit students of Nazirakhat village and provide the admission fees to the poor students, which family is not able to provide books, fees etc. The women of Gumoria Village also do same work. Women of Gumoria provide voluntary service at the time of agriculture season to Member’s family. Again they awards to the merit students of Gumoria village. Again in Jogdol, there is one NGO, Jogdol Nobojyoti Songho; this NGO also awards the merit of Jogdol. The women are also tries to keep alive their traditional dance. So trains the children at the of festival of Bihu like the women of Naziraklhat village. 3.3	Women and Economic Development: NGOs help to improve people live through skills training and other livelihood programs NGOs prepare and implemented developmental projects and work to strengthen local institutional capabilities and promote community self reliance. NGOs funding comes through donations, government assistance and a variety of other same. Some SHGs are engaged in collective farming in a hired land while few others work individually. The activities carried out by members of different SHG are petty shops, agriculture, piggary, poultry, duckery, business on paddy, cloths etc.	In Dimoria, we can classified the work done by SHGs as shown in the following table- Table No. 3 Classification of work of SHGs in Dimoria No. of SHGs	Works 1.	Micro Finance	711 2.	Animal Farming	321 3.	Agriculture Farm	241 4.	Handloom	121 5.	Bamboo Product	46 6.	Toy Making	35 7.	Food Processing	60 8.	Mushroom Production	90 As shown in the table, one SHG engage in many works. It is true that maximum no. of SHGs provide loans at minimum rate of interest to members of the unit or to non-member also. As get information from Mr. Harisaran Deka, a social worker and President of Gumoria Village Development Committee and Mr. Ramesh Bharali, fascinator of SIRD that SIRD gave 100 no.s of ducklings per SHG for examine in the year of 2003-2004 and it show positive result. From that time the women started to poultry farming. At present time in Gumoria, there are more than 30 thousands Cherachamily Ducks. As a result of it Gumoria is well known to all as a Cherchamily duck’s market. Cherachamily duck can produce more 25 eggs in a month and per egg sale at the price of Rs. 4. And per K.G. meat of ducks sale at Rs. 120. Now, one woman of Gumoria is able to earn monthly from Rs. 6000 to Rs. 15000. 	SIRD arranged one duck’s exhibition on 17 October 2006, where past president of India, Dr. A.P.J. Abdul Kalam came. It becomes a successful exhibition for the Gumoria village, because after that the eggs and ducks market is became large and now all people of Dimoria come to this market. It helps to make repairing the roads, power become regular. Now this Gumoria village is become a model village of Dimoria. Thus NGOs and SHGs raise the economy of Gumoria and make the living standard of poor people of Gumoria higher than before. Chapter - 4 ROLE OF WOMEN IN MICRO FINANCING The NABARD and RBI define Micro Finance as the “Provision of thrift, credit and other financial services and products of very small amounts to the poor, enabling them to raise their income levels and improve living standards”. Two broad approaches characterize the micro finance sector in India- Self-Help Group (SHG- Bank linkage) and micro-finance institutions. 4.1	 Role of Micro Finance Institutions in the field of economic development: 1. Micro-finance has reduced the incidence of poverty through increase in income, enabled the poor to build assets and thereby reduce their vulnerability. 2. It has enabled households that have access to it to spend more on education than non-client households. Families participating in the program have reported better school attendance and lower dropout rates. 3. It has empowered women by enhancing their contribution to household income, increasing the value of their assets and generally by giving them better control over decisions that affect their lives. 4. It has contributed to a reduced dependency on informal moneylenders and other non-institutional sources. 5. It has facilitated significant research into the provision of financial services for the poor and helped in building “capacity at the SHG-level”. Micro-finance can alleviate poverty but it cannot give much benefit if it is used as a single factor. It works effectively only when other necessary inputs are applied in combination with it in a desired proportion and right manner. Background training, minimum basic technical and business knowledge, self-interest of the beneficiaries are considered as pre-requirements to turn micro-credit into a self-employed micro-enterprise. Incase of micro-financing or credit a combined effort of local governments, banking sectors, NGOs, SHGs and the people themselves are necessary to convert the very small provision of finance into a successful income-generating self-employment projects. In case of Micro Finance Institution the sponsor is a profit-oriented venture capitalist who sees the rural credit market as a fresh business opportunity. The Micro Finance Institution brings great professionalism, innovation and technology to its enterprise. It also ventures to provide loans that bank do not but Micro Finance Institutions form no groups that are engaged in governance functions as in SHGs. Even when they operate through NGOs, Micro Finance Institutions are primarily concerned with lending and recovering what they lend to cohorts of people at times at very high rate of interest. Though Micro Finance Institutions play a vital role in bridging the gap between demand and supply of financial services but certain critical issues need to be addressed. 4.2 Grameen Bikash Bank and Micro Finance: In Dimoria, there is an important micro financial institution that is Grameen Bikash Bank, Sonapur Branch, Kamrup, Assam. The origin of Grameen Bikash Bank can be traced back to 1976 when Professor Muhammad Yunus, launched an action research project to examine the possibility of designing a credit delivery system to provide banking services targeted at the rural poor. The Grameen Bikash Bank Project  came into operation with the following objectives: 1.	To extend banking facilities to poor men and women; 2.	 To eliminate the exploitation of the poor by moneylenders; 3.	To create opportunities for self-employment for the vast multitude of unemployed people in rural areas; 4.	To bring the disadvantaged, mostly the women from the poorest households, within the fold of an organizational format, which they can understand and manage by themselves; 5.	To reverse the age-old vicious circle of "low income, low saving & low investment", into “high income, injection of credit, more investment, more income, more savings, more investment, more income". 4.3 SIRD and Micro Finance:	There is an institution, that helps the SHG and NGO to create micro finance and it gives aid/loan to NGOs/SHGs, i.e. ‘The State Institute of Rural Development’, Khanapara, Assam.	As part of 4th Five Year Plan, Government of India introduced a Central Sector Scheme to establish State Institute of Rural Development for imparting training to rural development functionaries at manifold levels and for creative and imaginative implementation of various Rural Development Programmes throughout the country.	The programme has to be financed by the Central Government and the European Economic Community. 	SIRD is the apex body undertaking training and research in multifaceted disciplines, which truly reflect the commitment of the Institute to the changing social, financial, administration and environmental, output requirements. Adequate focus has also been given to traditional trust areas like decentralized planning, women empowerment, Panchayati Raj, etc. Above all the institution plays a pivotal role in organizing conferences, symposia, workshop and seminars on various aspects and dimensions of rural development, Panchayati Raj, People’s Planning, women empowerment etc. 	The objectives of SIRD are as follows- 1.	To impart training to various official and non-official functionaries, directly or indirectly involved in the process or rural development with a view to equip them. (a)	With the sociological and behavioral perspectives and techniques for being able to sensitively understand the problems of the rural population. (b)	With the managerial skills for efficient designing, implementing, monitoring and evaluating rural development programmes. (c)	With the technique for enlisting community action in support of rural development programmes. 2.	To carry on research and formulate operational policies… (a)	To evolve ideas and concepts appropriate for rural development activities and to formulate policy alternatives. (b)	To bring about development in the spheres of appropriate technology for strengthening the qualitative aspects of the production processes of rural artisans. 3.	To create awareness on the potential of modern management services as a major instrument for rural development. 4.	To take up such other programmes pertinent to rural development as found necessary from time to time. The State Institute of Rural Development, Khanapara, Assam, was established as an autonomous body under the auspices of the Government of Assam with the objective of developing managerial skills, organizational abilities, leadership qualities and decision making skills among different categories of government officials, elected representatives of Panchayats and members oh non governmental organizations who are engaged in developmental activities in the state. It is also a major research and consultancy center on various facts of rural development. It creates Micro Finance through the NGOs and SHGs in rural areas. 4.4 Women and Micro Finance: The rural women in Dimoria are improving their access to the formal credit system, through various micro finance innovations in an effective and sustainable manner. Forming and nurturing small, homogeneous and participatory SHGs of the poor women has today emerged as a potent tool for human development. This process enables the women, especially the women from the poor households, to collectively identify and analyses the problems they face in the perspective of their social and economic environment. It helps them to pool their merge resources, human and financial and priorities their use for solving their own problems. The emphasis on regular thrift collection and its use to solve immediate problems of consumption and production not only helps to meet their most urgent needs, but also trains them to handle larger financial resources more skillfully, prudently and with a more lasting impact. The NGOs and SHGs and other local bodies at village, block and district levels in the North Eastern states are encouraged to take up alternative micro credit delivery mechanisms through direct funding. In Dimoria, maximum number of NGOs/SHGs provides loans to member of the unit or the non-member at a very low rate of interest. It is found from the survey report that maximum number of NGOs/SHGs can provide loans up to Rs. 20,000 at a time and they give the time limit up to 2 or 3 years. SHGs collect Rs. 40 to up to Rs. 300 as a fund of the unit from each and every member of the unit. After having a huge amount of money then they provide loans to the persons, who want it. Now, more than 700 SHGs of Dimoria are able to provide loans to others as the Banks. So, SHGs of Dimoria are known as Mini Bank. Thus, the women of Dimoria Plays important role in the field of economic development and in micro finance.. 4.5 The way of getting more success in micro finance in Dimoria: 1.	Creating Awareness and Providing Information: Creating awareness and motivation among the women and developing their confidence are more important. Their vulnerability to poverty makes them feel neglected and loss of confidence hardly leads them to find a way out of it. Special camps, orientations, exhibition etc. should be conducted to create public awareness about micro-finance, the procedure to access it and benefits. Some advice, vocational training and education can be imparted as a pre-requisite to promote micro finance. 2.	Up Scaling the Provisions of Micro Finance: Up scaling the provisions of micro finance in Dimoria are essential for future success. The macro-scenario of micro-finance sector in Dimoria has not shown much impact but still it is creditable. 3.	 Providing the Necessary Infrastructure – Capacity Building Measures: To get more success in micro-finance in Dimoria needs the better infrastructure and amenities in some local areas. Provision of power, irrigation, all-season connection road, establishment of storehouses, and development of marketing societies are very much essential for more success in micro-finance in Dimoria. 4.	Management of NGO/SHG: Formation of NGOs and SHGs and giving them credit only will not help much to bring success and tackle the problem of unemployment and poverty. More important is the management of these groups. The role of Micro Finance Institutions or intermediaries is vital to see this. Micro Finance Institutions being external agencies could over-see the functioning of NGOs and SHGs and render necessary advice to inculcate the business idea, build capacity of the clients and sharpen and mould them for achieving success. 5.	Providing Supporting Services: The poor women does not only need credit, they also need other financial services. Micro-credit is a means but it is not everything to end unemployment and poverty. It is not sufficient alone to start micro-enterprise; other inputs and services are required such as identification of livelihood opportunities both in farm and non-farm sectors. Other services like selection and motivation of micro-entrepreneurs, providing background business, technical and marketing knowledge, exploring markets for inputs and outputs, basic knowledge of finance management and provision of micro-insurance to cover the loss or damage of income generating assets produced with the help of micro-finance and credit and others are essential for effective working of micro-finance. Chapter – 5 SUMMARY, CONCLUSION AND RECOMMENDATION 5.1 Summary and Conclusion: Access to basic financial services like credit, savings, money transfers and insurance is one of the bigger challenges faced by the poor women. Micro finance plays a critical role in bringing these services within the reach of the under served and the poor women who are otherwise excluded from the mainstream financial sector. When provided on sustainable basis micro finance has proven to be a powerful in fight against unemployment and poverty. Prof. Mohammad Yunus was a pioneer in showing that the poor bankable if banking is made easy, transaction cost to the poor is reduced, physical collateral is substituted with social, the person is finance, not a project, peers are involved in under writing, the borrower repays small sum frequently and livelihood support services are provided with credit. Serving the poor in this manner is called in micro finance, which is sustainable provision of credit, savings, insurance, and other financial services with the focus of poor household to find it difficult to access banks. As stated by Dr. C. Rangrajan at high-level policy conference on Micro finance in India May 3, 2005. Micro finance can change the lives of the poor. There may not be a quantum jump in income but it is still possible to ensure a reasonable rise in the income of poor. In order to widen the scope of micro finance banks need to introduce appropriate organizational changes in the various branches in order to play a pro-active role in bringing more and more SHG under the bank linkage program. Also SHGs must transform themselves from pure thrift institutions into groups promoting micro enterprises. He further stated that micro finance could become an instrument for pulling the poor out of the trap in which they are caught. Nobel Laureate Prof. M. Yunus, said at a press meet in Pune, 19th Nov 2007, Economic Times) He remarked that if farmers suicides in India were linked to indebtedness, It was time to redesign the institutional source that has turned borrowing into such a nightmare with the pressure of punishment. This problem has to be resolved why should people die for just borrowing money? Human life is more important than banking and credit. He further stated that NABARD in India is functioning within the conventional banking laws. It should do an experimental run with new laws to collect deposit and disbursing before finalizing them.	G. K. Agarwal, Former Executive Director, NABARD, states that the time has come to introduce and insist on social accountability and performance audit for Micro Finance Institutions and other agencies engaged in micro finance. Suitable parameters are to be evolved in this regard. This will enable better acceptability, appreciation and credibility to their contribution and support for the poor. Though there is evidence of success of micro finance or credit in eradicating poverty and unemployment both in state and local level the degree and magnitude of success can be further hastened by the combined and effective working of government sectors, formal banking sectors, NGOs, SHGs, Micro Finance Institutions, and public integrated manner. Besides the provision of micro credit, other policies measures of the government in alleviation of poverty and reduction unemployment should be carried simultaneously.

5.2 References: 1.	“Microfinance in India: Sectoral Issues and Challenges”: - Thorat, Y. S. P. 2.	“Microfinance and Commercial Banks”:- Sundarashyam. C, Salim. K. A., 3.	“Microfinance Through Woman SHG and Poverty Reduction”:- Sheikh M. F.,Chauhan, Prakash, Bhowmik, 4.	“Micro Credit in Managing Poverty”:- Panda, P.K 5.	“Empowerment Through Micro finance”:- Professional Banker. 5.3 Websites: 1.	www.assamtimes.org 2.	www.microfinanceinsights.com 3.	www.sird.kerela.gov.in	Reports: 1.	Economic Survey of India, 2006-07 (GOI, Ministry of Finance). 2.	Khadin, 3 November 2006 5.5 Books: 1.	“Indian Economy”: - Dutta, R and Sundharam K.P.M., S. 55th Revised Edition, 2007. 2.	‘Everything You Always Wanted To Know About NGO’: - A. Paul, 3.	Grassroots Institutions Rural Development and Environment Management In North East India :- Edited by Gopal Bordoloi. 5.6 News Paper Articles: 1.	Economic Times, 19th Nov. 2007. 2.	Economic Times, 4th Jan 2008. 3.	Akhomiya Protidin, 18th Oct 2006. 4.	Akhomiya Protodin, 19th Oct 2006. — Preceding unsigned comment added by Chafikhur (talk • contribs) 16:24, 2 February 2013 (UTC)