In order to promote female entrepreneurs in the underdeveloped districts of West Bengal, the Small Industries Development Bank of India (SIDBI) will collaborate with the Association of Microfinance Institutions of India (AMFI).
According to Sudatta Mandal, the SIDBI's deputy managing director, women business owners will also receive assistance in establishing finance and market connections.
Mandal stated that SIDBI has already led the initiative in Odisha and that it has been highly successful while speaking at the AMFI-WB microfinance summit held here.
"12,000 women would receive credit for their efforts in order to increase their incomes in six West Bengali backward districts that have been designated for this reason. SIDBI will intervene in this matter for two years, "He declared.
According to Mandal, this action will increase women's average income by at least 30%.
The fundamental notion is financial inclusion, which has been the objective of succeeding governments since Independence, according to Alok Mishra, CEO of MFIN, a self-regulatory organisation (SRO) in the microfinance sector.
According to him, 30% of the addressable market has been touched by microfinance penetration, leaving the remaining 70% untapped.
According to Mishra, the industry currently has over Rs three lakh crore in outstanding debt, and microcredit has become a potent weapon for financial inclusion.
He added that in addition to the digital infrastructure, which the microfinance industry is using more and more of, the personal connection element should also be preserved.
"There must be a human connection. Use of digital connect as an enabler is recommended "he continued.
The COVID-19 epidemic presented a challenge to the industry, but according to Jiji Mammen, Executive director of another SRO Sa-Dhan, the sector has since returned to normal.
"A pioneering state in the microfinance sector is West Bengal. The smaller MFIs have recovered well since the pandemic, when the collection efficiency ratio dropped. Due to the people's positive connections, this occurred "he declared.
The umbrella organisation for MFIs in Bangladesh, Credit & Development Forum, indicated a desire to sign an agreement with AMFI for the purpose of exchanging knowledge and expertise.
"A bilateral agreement with AMFI with the forum will be useful for exchange of ideas," said the forum's executive director, Mohammad Awal.
