EDA Rural Systems, India Social Performance and client protection Ragini B Chaudhary.
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Transcript of EDA Rural Systems, India Social Performance and client protection Ragini B Chaudhary.
![Page 1: EDA Rural Systems, India Social Performance and client protection Ragini B Chaudhary.](https://reader036.fdocuments.us/reader036/viewer/2022062322/5697c02d1a28abf838cd9eb7/html5/thumbnails/1.jpg)
EDA Rural Systems, India
Social Performance and client protection
Ragini B Chaudhary
![Page 2: EDA Rural Systems, India Social Performance and client protection Ragini B Chaudhary.](https://reader036.fdocuments.us/reader036/viewer/2022062322/5697c02d1a28abf838cd9eb7/html5/thumbnails/2.jpg)
SR: Clients
6 Principles of Client Protection Avoidance of Over-Indebtedness Transparent and fair Pricing Appropriate Collections Practices Ethical Staff Behavior Mechanisms for Redressal of Grievances Privacy of Client Data
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Avoidance of Over- indebtedness
•Growing concern for most MFIs•MFI clients borrow from multiple sources – usually from
multiple MFIs• Adverse effect on the wellbeing especially of women on
account of over- indebtedness• Avoiding over-indebtedness makes business sense – it
reduces credit risk• In context of women clients –
What appraisal practices can be employed?
Appraisal of client v/s households
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Transparent and Fair Pricing
• Transparency applies to clear representation of all terms of the financial services• Fees and charges – one time
and recurring• Eligibility criteria• What efforts can be made to
ensure that terms are clear to the women clients?• How can they compare
competing products?
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Appropriate practices in collection
• What are the ethical practices in enforcing collection?• Can MFI staff be gender
sensitive in collecting over-dues?
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Grievance Redressal
• What are the mechanisms for clients for greivance redressal?
Usual practice includes:- Phone no on pass books- Suggestion boxes at branch
offices
Is this enough?
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Ethical behaviour of Staff
Clients need to be - treated with dignity - and respect - at all times- shown cultural
sensitivity
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Privacy of Client Data
- What does it mean in our context?- Credit history can be leveraged- Becomes critical in case of savings led programme- What risk does it entail for a women client if her dealings with MFI are
shared without her knowledge or permission?
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SR: Staff
Organisational policies and
practices including:
• staff training • salary structure• gender equality – equal pay for
equal work• gender sensitivity – appropriate
working conditions • safe working conditions• feedback mechanisms for staff• their involvement in decision-
making• staff satisfaction surveys (annual/bi-
annual)
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Social Performance – mission into practice
• About process and results – the steps to achieve impact
• Social performance ‘pathway’:
Intent Operations Results
MISSION
IMPACT
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Social Performance Pathway: Strategy and Operations
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Next Steps
• Client protection non negotiable• Checking over indebtedness critical part of loan
application/loan appraisal. • Checking awareness about product terms part of GRT• Written code of conduct with a gender lens necessary for
field staff• Compliance with code of conduct built into staff appraisal
and incentives.• Consensus among MFIs to express interest as EIR